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Subject:  Long Term Investing after a 401K & IRA's Date:  5/24/1999  7:41 AM
Author:  GeccoMorgan Number:  10719 of 88062

After maxing out one's 401K and utilizing the Roth IRA, are there any additional steps one can take to shelter (fully or at least party) income from short term taxes if the money is earmarked for retirement or long term investing?

My situation is this: I'm currently contributing the mawimum legal percentage to my 401K and my IRA. While this is a good start, I'm looking to earmark additional savings for retirement. While I'm only 26, I'm in the fortunate position that my income is high enough that I can save additional money for retirement or at least a long term window of 30 years or more. As each year goes by, I continue to rise into higher tax brackets frustrating my efforts to save for the long term.

I've explored several Mutual funds who's aim is minimizing capital gains by reducing turnover and companies that pay dividends, however there aggressiveness leaves something to be desired. Given my intention is a long term investment and the fact that I have a high degree or tolerance for a more aggressive approach, does anyone have additional ideas for me to explore?

While many of you would suggest the individual stock approach (No gains until you sees:except dividends), I have to admit that my work hours are such that I feel uncomfortable in maintaing a portfolio that I can not watch carefully.

I have doen some limited research into investment trusts and was wondering if any opportunities exist there for sheltering income from taxes. Because this money is for the long term, I'm willing to enter an aggreement that restricts withdrawls for a predefined time period.

Apologies for the long note and thanks in advance for any advice.


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