8 Tax Mistakes You Can’t Afford to Make: Annaly Capital Management, Inc. (NLY), American Capital Agency Corp. (AGNC)

Recommendation: If you have tax-favored accounts, make sure you use them wisely.

High-income bonds, as well as real estate investment trusts Annaly Capital Management, Inc. (NYSE:NLY) and American Capital Agency Corp. (NASDAQ:AGNC) produce income that’s typically taxed at high ordinary-income rates, and so they often do best in IRAs rather than taxable accounts.

By contrast, a low- or no-dividend stock that you buy and hold for decades may actually cost you more in taxes in an IRA than a taxable account.

Bottom line: Position your investments to make the most of available tax savings.