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Smart Stocks to Buy for Your Roth IRA

Investing isn't just about what stocks to buy; you also have to know where to buy them. Making the most of tax-favored retirement accounts like Roth IRAs is crucial in saving the most you can for your retirement.

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 Roth IRA. Dan notes that Roth IRAs give you tax-free treatment on dividends and capital gains from your investments, making it smart to look for the stocks that will provide maximum growth in your portfolio.

To give an example, Dan talks about the 3-D printing industry and how mixing established players 3D Systems (NYSE: DDD  ) and Stratasys (NASDAQ: SSYS  ) with up-and-coming players Organovo Holdings (NYSEMKT: ONVO  ) and voxeljet  (NYSE: VJET  ) in a Roth can give you the benefits of strong growth from whichever companies ends up winning in the space while letting you sell out of slower growers without worrying about tax consequences. In addition, Dan points out that even Apple (NASDAQ: AAPL  ) could make a reasonable Roth IRA choice, with deep-value appeal and sheltered dividends making an attractive combination.

Dan concludes that you don't want to have losers in a Roth, but speculative plays are sometimes worth considering if the high-growth potential they have outweighs the risk involved.

Get the best stocks for your retirement
When it comes to choosing smart stocks for your Roth IRA, your best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.


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  • Report this Comment On November 29, 2013, at 5:51 PM, biliti4 wrote:

    I'm confused. I just started buying 1 share twice a year for my 28 year old daughter of Proctor and Gamble and Johnson and Johnson. I gift her on her birthday and Christmas. It's a modest start.

    So here's the question:

    Can these stocks be put into a Roth IRA? Can she open a Roth with these 4 shares and continue then to put money into these stocks within her Roth IRA?

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Dan Caplinger
TMFGalagan

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

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