The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: New law needed for 401k||Date: 10/6/2007 2:06 PM|
|Author: Hohum77||Number: 59451 of 76418|
Dude, Just SAVE money for retirement!
A tax-free environment would be great, but if that is not available, one moves along to the next option ... a tax sheltered account (401k, 403b, etc.)
Okay, so you are not allowed to contribute the first year ... bummer.
Next alternative ... taxable accounts. Buy-and-hold good dividend paying stocks , then all you pay is the 15% tax on dividends. DRIP (reinvest those dividends in the same investments), and the Capital keeps compounding. An apples-to-apples comparison i.e factoring the taxes at 401k withdrawal time, you may end up with better returns than a 401k plan.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|