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I'm thinking of opening a SEP IRA with $6,000.00. Vanguard appeals to me because they have minimal fees. Any other suggestions on where to open the SEP IRA are welcome.
I'm new at investing, and I'm wondering how to invest this $6,000.00 I have no stocks so I'm thinking about the S & P 500 and maybe something else.
I already have a variable annuity with Franklin. After reading the Forbes Feb. 9th article-"You have to be an idiot to have a variable annuity"-I realize it's time I started to learn about investing.. I've averaged about 11% annually with very little risk.
I'd really like some feedback.
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[[ I'm thinking of opening a SEP IRA with $6,000.00. Vanguard appeals to me because they have
minimal fees. Any other suggestions on where to open the SEP IRA are welcome.]]

While I'm not going to comment on your investment vehicle, I'm a little concerned about your $6k SEP contribution. Since you are new to investing, I'm concerned that you may not know that your SEP deduction and contribution is based upon your net Schedule C income (or some other earned income). And, based upon your SEP amount, your Sch C income must amount to about $46,000. Is this the case? If not, you'll need some help with your taxes prior to your investing.

Remember that you can't just pick a SEP contribution number out of the air. It has to be based upon earned income.

For additional information on SEPs, see IRS Publication 590.

TMF Taxes
Roy

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You may be thinking SIMPLE vice SEP IRA. As I read the IRS Pub, you can fund a SIMPLE IRA with up to $6,180 ($6000 x 1.03) assuming you are the only employee.
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