Replies to post #45559 on Hartcourt Companies (fka HRCT)

[Investorman]

The reason that mutual funds, bonds, etc are usually mentioned is because those types of investments have annual taxable events and a Roth IRA sheilds you from them. Equities, of course, only have a taxable event when you sell them and the tax rate on capital gains is less so the Roth IRA doesn't sheild as much. (Although dividends received from stocks are also tax free inside a Roth IRA so there may be an additional benefit if you own those types of stocks. --- Also if you trade stocks inside the Roth IRA the gains are also sheilded)