This is a very complicated question and doesn't lend itself to a quick answer. But we'll try.

The President's proposal may change the investment landscape as individuals figure out the best strategies for their investment dollar. So far, the plan looks as if it will have no effect on how dividends are taxed in the majority of investors long range retirement plans. Dividends in IRAs and 401(k)s look as if they will be taxed when they are withdrawn. That part of the plan effects the majority of Americans and will probably come under fire as the plan moves through the Congress.

It looks as if the best place to put your money may be in funds that invest in blue chip companies whose base is rock solid and who might be considered a value play.

Another place to look if you are interested in purchasing individual stocks would be to invest in zero coupon preferred stocks. Long the investment choice of the ultra conservative, these preferred stocks work this way: Companies would issue this type of stock for investors willing to wait and to raise money without having to go to the bond market. The investment would be tax free with low risks. A company would issue a preferred stock with a face value that might mature at a certain time to be worth twice the price that it was initially sold to the investor.

Mutual fund plays will also start to tout there wares and those in the equity income space will find any relief from dividend tax a boost in attractiveness.

Brian Portnoy is a senior fund analyst with Morningstar.com. recently reviewed the Hartford Dividend & Growth A  (IHGIX) and had this to say:"Dividend-yielding firms with easy-to-understand business models, sound financial statements, and reasonable valuations have fared relatively well, and those are just what this fund looks to buy."

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