Picks of the Day: Large-Cap Growth Stocks and more
Two of our certified financial planners offer picks and strategies for the average investor:
Doug Lockwood, Principal, Harbor Lights Financial Group
We love large-cap growth stocks as this economic recovery starts to get some legs. These stocks normally do not pay dividends but are reinvesting 100 percent back into themselves. Large-cap growth is a hot sector right now and can be part of anyone’s asset allocation. The sector is up 9 percent year-to-date.
Doug Flynn, Founder, Flynn Zito Capital Management
If you make too much money to do a Roth IRA, consider making a non-deductible contribution this year and early next year and then convert it all to a Roth in 2010 for one of the last wealthy tax breaks around (there are no income limitations on Roth conversions next year). $10,000 invested ($5,000 each year) turns into a tax-free $50,000 in a little over 20 years at 8 percent. This way, you can do the Roth dance even if you are “rich.”