UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next
Author: Watty56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76082  
Subject: Re: Retirement savings options for high-income e Date: 1/4/2011 5:48 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
There are a number of mutual funds that are designed to be tax efficient. Likewise some ETF's have low dividends and rarely buy or sell stocks so they are naturally pretty tax efficient. Buying one of these and holding it for decades can work out well. The capital gains tax rate on these could be lower than the tax rate you would pay on the non-deductable retirement account. Under the current tax laws if these go to your estate they will go at a stepped up cost basis and the capital gains tax may never be paid.

For most people having a paid off house when they retire is good plan so you might want to consider the question of paying off the mortgage more of a question of "when" instead of "if". The last I saw about a third of all houses are owned without a mortgage.

I didn't see any mention of college savings plans, if you are eligible for one that would be worth looking into for the tax advantages.

You didn't mention your spouse's retirement savings. Even if your spouse does not have any income you can still usually fund their retirement accounts if you are eligible.


Greg
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
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