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Author: overo One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76079  
Subject: Keogh plan, but resisting IRA... Date: 1/27/2000 12:47 AM
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Hi, I hope someone out there can help me. Here's my situation.

My husband is covered with his companys Keogh profit sharing plan. It's a small company, and there are 4 co-owners.
They all pull in a pretty good salary.
We don't have children, and don't plan of having any.
We own our land free and clear, but someday want to build a house.
There is a good sized chunk of money (but not HUGE) invested in the market currently.
Both of our cars are almost paid off. (We bought used).
This is the scenario.

They are talking about arranging another plan that would withhold either 15% or 25% of his salary, before taxes. We can't contribute anything to it personally.
He feels this is sufficient for our retirement needs.
He wants to retire at 55.

My problem is that he is resisting either of us getting an IRA, Roth or otherwise.

I'm self employed, and feel strongly that I personally need to have an IRA of some sort. I'm a big believer in preparing for the future, but unfortunately, we're starting a little late at 38 years old.

I'm trying to make him understand that it's tax deferred with the Traditional IRA (getting taxed at retirement), or pay the taxes up front (Roth) and get it home free at the back end.

He doesn't feel that paying the taxes on the Roth makes sense, because of the loss of the compounding interest on the taxed money. I like the idea of not having to worry about: capital gains, more taxes down the road, and more paperwork down the road too.

I imagine this is the raging debate between Roth or traditional. I my case, he doesn't really want either!
I'm having a heck of a time trying to get him to see that having 3 retirement investments isn't going overboard. The Keogh, and the 2 IRAs for the 2 of us.

This guy is brilliant with numbers, but when he makes up his mind...

Any advice would be gratefully accepted!

Thanks in advance,
Tisha
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