When both stocks and taxable interest-paying investments are owned, try to hold the latter in retirement accounts so interest received on them is tax deferred and compounds on a pretax basis. Try to hold stocks in taxable accounts to benefit from the 15% top tax rate on dividends and long-term gains. On a going-forward basis, shift investments in your retirement accounts from stocks to interest-paying assets. Remain partially invested in stocks by making new investments in them through taxable accounts.