My income is low enough that I could contribute the maximum to a Roth IRA ($6,500 with catchup contribution), but at that rate it would take many years to invest a large sum. The money is not coming from an employer or another retirement account. It is a gift.It sounds like a taxable brokerage account may be the only option for me.I don't know your age or at what age you plan to retire, but I've been giving this a lot of thought lately. My wife and I planned to retire around age 53 because that's when my pension would begin and we should have plenty of money by then. The problem is, all the other money is in a 457 plan, 401K plan, and Roth IRA's. We even did a backdoor conversion last year. Oops. Why do I say oops? Because I can't get to my Roth money until 59 1/2 (I know I can pull the contributions out, but that's a lot of bookkeeping). I can get to my 457 plan at 53, but my wife cannot get to her 401K money until 55 at the earliest. I broke the bad news to her last night that she'll have to work until 55. So, guess who else gets to keep working? :-) Bottom line, if either of us wants to beat age 55, we'll have to invest in a regular brokerage and pay taxes on the dividends all along the way. But, my ultimate plan is to live off those dividends. After all, a million dollars at 4% throws off $40,000 in dividends. Two million throws off $80,000. So, add in a pension and we'll be doing pretty darn good whether social security goes bankrupt or not.
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