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Subject:  overseas Date:  6/23/1998  4:42 AM
Author:  jm41 Number:  3940 of 88763

Hello all,
I am new to investing (though I shouldn't be -- it's something I've found infinitely confusing and thus have avoided for too long). Have a couple of questions.

I'm a 31-year-old American living in England. I work full-time in England and am married to a British citizen. I contribute to my company's pension policy here, which will pay me an annuity when I retire that will be calculated from a fraction of my final salary multiplied by the number of years I have accumulated working for this company. First question: does it make sense to 'buy extra years' in this policy by paying more money into the pension scheme? The maximum number of years you are allowed is 40, which I am unlikely to reach unless I do pay extra money in. But the money I pay in will not be before tax (25% in this country, even for a low earner like me), and it will not be matched by my company. It seems that extra money could be invested better elsewhere, because then I will be able to take advantage of market growth. Any thoughts?

One idea I have had is to take advantage of the fact that I do occasionally do computer work for my father, who owns a small company in the States. I never ask him to pay me for this, and the company does not make enough that it can afford to. But I was wondering if it would make sense for me to contribute some money to his company so that it could pay me for this work and then I could put that into my IRA in the states (I have a small traditional one). Am I mad?

This leads me on to my third question. Can my husband (who, like I said, is a British citizen) have an IRA in the States if he gets paid money for work done in the States?

For the time being we are planning to remain in England, if that makes any difference.

Thank you!

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