Tags: Jim | Cramer | Oil | Tanker | IRA | 401k

Cramer: Oil Tanker Stocks Can Fuel Higher IRA Returns

Wednesday, 07 Apr 2010 08:56 AM

Investors wanting to bulk up their retirement portfolios should target 401(k)s and individual retirement accounts, said Jim Cramer, the financial expert.

While both of them offer tax incentives, IRAs are a better option since investors have more choices, he said.

Stocks which pay dividends and high yields are the best bet, said Cramer on CNBC.com.

Investors should take a look at master limited partnerships, oil tanker stocks and real estate investment trusts.

The safest option for investors is the pipeline companies which are in a master limited partnership. Cramer recommends Enterprise Product Partners because it is more immune to the price of oil and gas and pays high dividends consistently. He also likes Kinder Morgan Energy Partners.

Investors seeking large dividends should invest in oil tanker companies such as Nordic American Tanker, Cramer said.

Since the dividends from real estate investment trusts are taxed as ordinary income, Cramer suggests placing those stocks into an IRA. In an IRA, taxes on the stocks are delayed.

He recommends buying stocks in the iShares Dow Jones U.S. Real Estate Index Fund, which has a large exposure to several REITs which focus on mall properties.

Another option is to invest with Federal Realty Investment Trust, one of the largest U.S. shopping center REITs.

The yield on REITS has been rising lately, CNN.com reported.

“REITS have been running up a bit as investors chase yield. Individuals that are largely in fixed income are starting to realize that there are better investments," said Jill Cuniff, president of Edge Asset Management, a Seattle-based investment firm that runs the Principal Equity Income fund.

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Investors wanting to bulk up their retirement portfolios should target 401(k)s and individual retirement accounts, said Jim Cramer, the financial expert. While both of them offer tax incentives, IRAs are a better option since investors have more choices, he said. Stocks...
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2010-56-07
Wednesday, 07 Apr 2010 08:56 AM
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