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Subject:  Re: AMEX Financial Advisor Experience and Questi Date:  4/9/2004  11:41 PM
Author:  Mark0Young Number:  40416 of 88053

As well as contributing the maximum employer matched amount on my 401k.

If after doing this we still have money left over, is there any other tax-advantaged account my wife can contribute to since her employer doesn't offer one?

If there is still money to invest for retirement, if the expenses on your 401(k) aren't excessive, it may be better to contribute up to the plan limit on the 401(k) after you have maxed out your and your wife's contributions to some flavor of IRA.

Generally, if you have more money to invest than would be allowed in the retirement accounts available to you and your wife (401(k), 403(b), Roth IRA or Traditional IRA, etc.), the next step would generally be a taxable account and investing in something reasonably tax efficient, such as the Vanguard Total Stock Market Fund. However, if you or your wife's occupation tends to attract lawsuits, you might check to see if a non-qualified Annuity might provide protection from creditors in your state. (The 401(k) and 403(b) have ERISA protection, but protection of IRAs and non-qualified annuities from creditors varies based on state law.) If you do go the non-qualified annuity route, generally one should look for low expenses and, if you don't need the life insurance component, exemption from the life insurance component. Generally TIAA-CREF is the best source of non-qualified annuities (low expenses) with Vanguard a close second. But if your occupation doesn't attract lawsuits, Vanguard's mutual funds tend to have the lowest expenses available for index funds available to the public, with TIAA-CREF in second place.
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