Message Font: Serif | Sans-Serif
No. of Recommendations: 0
joandtj asks,

I am investing in my wife's and mine retirement accounts the maximum amount. I am looking to
invest in an account where I can have instant access to my money and not have to wait til I am
old to take it out. However, I am scared of the tax consequences. Is there something I can get
into outside of a retirement account where I won't be penalized so heavily with income and
capital gains taxes?

I not aware of anything that allows you escape taxes completely without taking on the risk and high fees of VUL (variable universal life insurance).

Probably the best thing you can do is something like the Vanguard Tax-Managed Index Fund. This should delay most of the capital gains taxes until you're ready to withdraw the money and spend it.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.