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Stock impact report

RSPA's 8.9% Yield Hides a Tax Problem Most Income Investors Never See Coming [Yahoo! Finance]

Citigroup, Inc. (C) 
Last citigroup, inc. earnings: 4/15 08:00 am Check Earnings Report
US:NYSE Investor Relations: citigroup.com/citi/investor/pres.htm
Company Research Source: Yahoo! Finance
to generate monthly income, but caps upside participation in bull markets—SPY returned 13% over one year while RSPA returned 11%, and RSPA's ordinary income from ELNs is taxed at marginal rates (22%-37%) rather than the favorable 15-20% capital gains rate applied to qualified dividends. SPDR S&P 500 ETF Trust (SPY) tracks the cap-weighted index and allows full market participation without upside caps. RSPA's high yield masks two structural costs: capped gains in strong rallies and unfavorable tax treatment that erodes after-tax returns for investors in taxable accounts, making the fund suitable primarily for tax-advantaged retirement accounts where ordinary income classification has no cost. Have You read The New Report Shaking Up Retirement Plans ? Americans are answering three questions and many are realizing they can retire earlier than expected. Invesco S&P 500 Equal Weight Income Advantage ETF NYSEARCA:RSPA ) pays investors a monthly distribution that would be the envy of m Show less Read more
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