I recently came into a small chunk of cash that I would to invest in an adventurous way. I understand that some MLPs are available without creating a messy tax result (forms etc). I am celebrating my 84th birthday this week and have sufficient funds in a large IRA account and hate to have to pay taxes before my time is up.
Can anyone suggest one or more funds or efts that I should consider?
Happy holidays to you all!!!
Comments
MLPAX has done ok for me. 4* from M*, upward slope; low risk, ave+ return. Just how much adventure do you want?
KMR good long term - manages MLPs, but return not so good lately (still + for the year); no tax forms so far as I know. Might require patience.
With respect to your original question I assume you're referring to k-1 forms. If that's the case then KMR would suit your purposes nicely. KMR distributes dividends in additional shares, not cash, so there's nothing to fill out at tax time until you start selling those shares. If you want or don't mind simple income without the k-1 headache then KMI is your boy.
Congratulations on making 84 years … and, I truly hope you make many more. I have linked the Morningstar report on ALERX. It pays out a distribution of about six percent with no K1 to file. There would be no taxes to pay while held within your IRA; however, I do believe you would be taxed on your RMD’s. I have looked at this fund for my own portfolio; however, for some reason, my brokerage firm has not yet approved it for client purchase. You will need to check with your brokerage firm where you hold your IRA to see if it can be held in firm name within your IRA.
Morningstar Report: http://quotes.morningstar.com/fund/f?t=alerx®ion=USA
And, more information on the fund: http://www.alpsalerianmlp.com/thefund.php
Thanks for stopping by … and, I sincerely wish you the very best in the years to come.
Old_Skeet