UnThreaded | Threaded | Whole Thread (21) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: Long Term Investing after a 401K & IRA's Date: 5/24/1999 9:25 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, GeccoMorgan, and welcome. You asked:

<<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?>>

The only thing left is an after-tax annuity. That's appropriate if your sole goal is to shelter any earnings from income taxes until you retire; however, in general they make a poor substitute for the purposes of maximizing your savings. If the latter is really your goal, then stick with a taxable account within which you use stocks to maximize growth and minimize dividends. When you sell, the growth gets taxed at much lower capital gains rates. Chances are far better that you'll end up with more money that way then you would in an annuity after you start withdrawals that get taxed at ordinary income tax rates.

Regards..Pixy
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (21) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement