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URL:  http://boards.fool.com/you-can-contribute-a-combined-total-of-3000-to-18698699.aspx

Subject:  Re: Basic Question Date:  3/6/2003  9:32 PM
Author:  yobria Number:  35839 of 75335

You can contribute a combined total of $3,000 to your Roth and Traditional IRAs (+$500 if >50). Go with a Roth if you're unsure which to choose, as it will result it a greater final portfolio value given a static tax rate.

Yep, some people can only contribute to $3,000 toward retirement account, some can contribute $11,000, and some can contribute $40,000 (self employed people). Hey nobody said life was fair!

Don't sweat it though. IRAs are a bit overrated in my opinion. Taxable accounts offer two powerful wealth-building weapons: lower tax rates on your long term cap gains, and the ability to deduct capital losses against your regular income. Not to mention greater control over the funds.

Stick your taxable income in growth stocks, which pay little or no dividends, or maybe tax deferred investments like I-Bonds.

Also, bug your company until they provide a retirement plan. Sheesh it doesn't cost them anything if they don't match and it can save their employees a fortune.

Nick

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