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Author: isaacsmama Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75381  
Subject: Roth vs. 403b(7) Date: 12/11/2000 9:42 PM
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Any reason why I should have both a Roth IRA and a 403b(7) account? I thought it was best to max out (which I have been unable to do) on my 403b (I have it in Index funds) before starting up any IRAs. But recently I have been otherwise advised. Does anyone have an opinion on this?
Elaine Bush
Carmel, CA
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Author: sonny36 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26562 of 75381
Subject: Re: Roth vs. 403b(7) Date: 12/12/2000 10:21 AM
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You should fund your Roth because it grows tax free for life with no income taxes ever unless you miss the 5 year holding rule and it has termendous estate planning possibilities. You never have to withdraw you funds unless you want to. In other tax-deferred accounts you have Minimum Required Distributions at age 70.5. The rule that we follow in our investment study group is that you:
1st. Match any money from your employer in your tax-deferred account. 403b, 401k,
2nd. Fund your Roth for you and your spouse.(2000+2000)
3rd. Max out your tax-deferred accounts. 403b, 401k
4th. If you have any money left to invest, you then buy a growth stock that pays no or low dividends. This way you never pay taxes until you decide to sell. Then you pay only capital gains taxes which will be lower than ordinary income taxes. Berkshsire Hathway would be a stock that meets that criteria. There are others that would also meet this criteria.
glenn

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