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Author: lcd186 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: Not IRA eligible: savings ideas? Date: 11/10/2013 3:45 PM
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Not sure where to post this, please refer me to another board if "Tax Strategies" is not appropriate.

I am two years post-bankruptcy chapter 7 and my only income is SSDI for the foreseeable future. I am gradually paying down back taxes (finally under $10,000 total principle, fees, and interest). My long-term hope (meaning 2-5 years from now) seeing if I can return to work, but not an immediate option yet. I am 48, single, no dependents.

My goal is to start a nest egg, long-term savings/investment. I don't expect to have the larger and diversified cushion of traditional retirees, but I want to start something. Before bankruptcy, I used to have a combination of retirement assets (IRAs, 401K, etc.) that was valued up to $250K at its peak, but that value was all lost in the recent declines, or liquidated in my financial crises of the last several years ending in 2009.

My hope is to start very small at an estimated $400 per quarter ($1,600 per year) at this time. Under normal circumstances, my first choice would be an IRA (roth IRA), but SSDI is not "earned income" and IRAs require only earned income. If/when I have at least a part-time job, I know all that earned income can be put towards an IRA, but nothing specific for now.

For immediate purposes, I will consider also taxable accounts as I think the value of having savings, even if taxable, is critical. I've been looking at retail bank flyers for money market accounts, certificates of deposits, and other, but hoping there is more out there I am unaware of. I want to get started.

Any suggestions?

Lois Carmen D.
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