Avi Morris

Why Buy MLPs?

After being an investor all of my adult life, I only began following MLPs since last year, prior to the 342 peak for the Alerian MLP index. I was attracted by their high yields and tax efficiency. Partially because of tax hassle on distributions, I held back investing. But I've learned a lot about the business.

Buying MLPs for IRA's is tricky. Congress passed an exception which can be haunting, such investment income has to be under $1000 per year. If it goes over, tax problems are a very big pain. As a result, my broker, and suspect many others, do not permit buying limited partnerships in IRAs. However, stock equivalents or closed end funds are permitted because they are just stocks.

I am not an accountant, only an amateur with street knowledge. All personal tax issues should be taken up with a professional accountant.

My blog:

verysmartinvesting.blo.../

generally gives at least a mention for MLPs daily, today (Sep 9) much more. More readers are always welcome.