UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: Tag72 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75540  
Subject: Retirement Planning Question Date: 3/4/2000 11:31 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi Fools,

I appreciate any help you can give me. It is always good to get advice to get a person thinking. Also, please excuse me if this is a little lengthy, I want to give as much info and personal thoughts as possible. I had read an article last week by Ann Coleman and just now read a reply post(#19610) by TMF Pixy about contributing to a tax deferred plan like a 401K/403b or a long term taxable account to withdraw from for retirement. This is taking in consideration that an IRA is not available or it is maxed out. I would appreciate some personal thoughts on my situation. I am single with no children and currently maxing out a Roth IRA($2000). I am a teacher and I am contributing into a 403b non-matching(of any sort) plan through Vanguard(through my doing). Reading the article and the post, makes me wonder if I retire, is it in my best interest to contribute to my 403b non-matching plan or just contibute the same amount of money to a long-term capital appreciating taxable account? I know that the 403b is giving me a tax deduction and I can switch funds or companies(I don't know why I would switch away from Vanguard) without tax consequences. However, the fact that is making me think about contributing to a taxable long term account for retirement only is that when I withdraw money I will be taxed only on a long-term capital gain rate 20%(I did hear that the government is thinking about reducing this to 18% if held over 5 years, Correct?) When I withdraw 403b money for retirement, I will be taxed at my income tax rate at that time taking in consideration I am receiving my State retirement income only is going to probably be 28%. Would it not be Foolish for me to stop my 403b and just contribute to a long-term taxable account? Any thoughts are greatly appreciated. If you need for info, please ask. Again, sorry for the length. Thanks in advance!

Tag
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | 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