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Author: PFFool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76079  
Subject: How much can I invest? Date: 4/8/1999 11:50 PM
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Hi.

I was wondering what my limits are on investing in Roth and Simple-IRA's. If I put the max $2000 in a Roth-IRA, how much can I then stick in my Simple-IRA for that tax year?

Also, am I going about this in the right way? Should I be stuffing my Roth-IRA before I start putting money in my Simple-IRA? If it matters, I'm 26 years old now.

Thank you so much for the help!
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Author: dharmadollars Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9828 of 76079
Subject: Re: How much can I invest? Date: 4/9/1999 7:31 PM
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Roth contributions are not taxable events. They have no effect on the amount you can put into your Simple IRA. I like the Roth for someone your age because the long term appreciation should provide you with a huge reservoir of TAX FREE assets. You can then manage your retirement income by offsetting some expenses, like your mortgage payment, which I think you should continue well into retirement in order to leverage you other assets, with taxable income from your Simple and other pre-tax savings.

I like the fact that at 26 you are learning to live below your means. This points to a bright future for you.

Build up some savings outside of these accounts. You will possibly need some cash to cover downpayment and closing costs on a home, you know, that tax shelter you sleep in.

You're doing great. Keep it up!!

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