UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75540  
Subject: Re: Planning now Date: 8/21/2000 9:14 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I will be early retiring at the beginning of next year and am still confused about the mechanics of setting up my rollover
IRA and a separate taxable account funded from my deferred account. I have been lurking for a couple years now on
several of the retirement related boards and feel comfortable with a self directed IRA. I am a little hazy on the cheapest
way to initially set it up.

I have read numerous messages where it is recommended to have at least two brokers. That should you have an IRA
account with someone like Schwab, you can get advantages of the organized service brokerage with nice website and
then a secondary discount brokerage like E*Trade for placing your trades. I did call Schwab, had an initial discussion
about setting this up, and fees and got indirect answers. Well, the answer was "buy our index fund, yada yada".

I will have planned a safety net with my defined benefit and 6 years of laddered CDs in my IRA, my taxable account and
paid for vacation home.

Since I believe its likely I could live for another 40 years, and that is I would like to have my assets allocation weighted
heavier in equities. At this point in my planning, I would like with a portion of my IRA to just buy VFINX and QQQ and
hold them forever. I will need to buy my CD's. I will need to buy my rule makers or Foolish 4's or what ever method I
eventually chose for my stocks for both accounts. It seems like it could cost a lot in transactions and fees to get this set
up.

I have sent an email to my employer to see if they would initially write separate checks for my 401 roll over. From my
plan booklet, I don't see this happening.

Anyone have any ideas on this? FOOl On.



You do not want to die with an regular IRA or 401k assets as the taxes are heavy. Also you get capital gains treatment on gains out side of regular IRA's and 401k's and pay regular income tax on the entire regular IRA and 401k. Therefor CD's in the IRA and the QQQ's etc outside of the IRA's. Also, you do not get a step up in basis of assets in an IRA.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

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

Kate Spade's Wild Ride
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