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Subject:  Re: Roth IRA or 403b(7) plan Date:  3/28/1998  11:13 AM
Author:  TMFPixy Number:  2437 of 89859

Greetings, ra, and welcome.

<<I have a question, which is better to invest in for retimenent a Roth IRA or 403b(7) plan from my university. Right now I doing both, but in my 403b I can contribute up to $10,000 unlike the Roth which is 2000 dollars. Should I stop one and put the extra money in my DRIP Portfolio or should just continue doing what I doing. thank you >>

As a very general rule of thumb, you should invest in your employer's retirement plan up to the level where you receive the maximum match from that employer. The next $2K should then go to a Roth. Anything beyond that should go back into the employer's plan for the tax deferral.

Obviously, that rule of thumb is largely contingent on your available investment alternatives and personal circumstances. What's best for you can be determined only by you after full consideration of your tax status, rates of return and available investment options. Sometimes the 403b can be better, other times the Roth, and still other times a fully taxable investment.


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