Smart Stocks to Buy for Your Taxable Account

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Smart investing takes more than just buying the right stocks. You also have to put those stocks in the right place. In particular, using retirement accounts to their full potential while also being smart about how you invest in taxable accounts can make a huge difference to how much the IRS gets of your hard-earned money.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, takes a closer look at how to find smart stocks to buy for your taxable investment IRA. Dan notes that the ideal situation is to have buy-and-hold-forever stocks in your taxable account, as never having to sell means never having to pay capital gains taxes. In addition, minimizing dividends makes sense, as even with preferential rates, most taxpayers still have to pay some tax on dividend income.

Dan concludes with some prospects for investors to consider. He notes that Berkshire Hathaway has been an ideal taxable-account stock over the decades, but any high-growth stock with no dividends can be a good choice if you think it has long-term potential. , Google , and other well-known names have served taxable-account investors well.

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Berkshire Hathaway has done so well because Warren Buffett didn't bet on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

The article Smart Stocks to Buy for Your Taxable Account originally appeared on

Fool contributor Dan Caplinger owns shares of Berkshire Hathaway. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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