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Author: ra Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Roth IRA or 403b(7) plan Date: 3/27/1998 12:17 PM
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Dear fool: I have a question, which is better to invest in for retimenent a Roth IRA or 403b(7) plan from my university. Right now I doing both, but in my 403b I can contribute up to $10,000 unlike the Roth which is 2000 dollars. Should I stop one and put the extra money in my DRIP Portfolio or should just continue doing what I doing. thank you ra5@columbia.edu
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2437 of 74759
Subject: Re: Roth IRA or 403b(7) plan Date: 3/28/1998 11:13 AM
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Greetings, ra, and welcome.

<<I have a question, which is better to invest in for retimenent a Roth IRA or 403b(7) plan from my university. Right now I doing both, but in my 403b I can contribute up to $10,000 unlike the Roth which is 2000 dollars. Should I stop one and put the extra money in my DRIP Portfolio or should just continue doing what I doing. thank you >>

As a very general rule of thumb, you should invest in your employer's retirement plan up to the level where you receive the maximum match from that employer. The next $2K should then go to a Roth. Anything beyond that should go back into the employer's plan for the tax deferral.

Obviously, that rule of thumb is largely contingent on your available investment alternatives and personal circumstances. What's best for you can be determined only by you after full consideration of your tax status, rates of return and available investment options. Sometimes the 403b can be better, other times the Roth, and still other times a fully taxable investment.

Regards…..Pixy


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