UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Author: cactusadam Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Small business employment Date: 4/17/2001 3:05 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings,
This is probably a simple question, but my wife is about to begin employment with a small business that does not offer a 401(k) or similar plan. Aside from a regular IRA, are there any other tax-deferred retirement savings options out there? Thanks

cactusadam
Print the post Back To Top
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29238 of 74759
Subject: Re: Small business employment Date: 4/21/2001 10:08 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
IRA and Roth IRA are the best available. You could also do an annuity, but Fools usually recommend against it due to their high costs, and many limitations. Fees are often high. If you have a poor performing annuity or high costs, changes can be costly. So if you do an annuity, make sure it is one of the low cost ones offered by Vanguard or others--not the costly ones sold by brokers and insurance companies.

Better would be to make taxable investments with an eye toward minimizing current income taxes. Long term buy and hold (LTBH in Foolish lingo) is the best. That can be in stocks like Rule Makers, in a tax managed mutual fund, or in an index fund. These funds tend to have low expense ratios and make low or minimal capital gains distributions. Stocks incur annual taxes only on the dividends they pay, which can be zero or small. Otherwise, you pay taxes at capital gains rates only when you sell.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Advertisement