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Author: spockster303 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75381  
Subject: to IRA or not to IRA? Date: 11/12/2000 5:19 PM
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In the event my questions have been answered somewhere previously - I apologize! However, would appreciate help with the following. I am 45, married 26 years,(wife 44,back to school to complete her degree). We have been fortunate, and now have about 18 months expenses saved (money markets, CD's). I am fully vested in a company sponsored profit sharing plan that has recently grown to low six figures. (I cannot contribute anything to it, but I believe if I leave can convert to a Roth IRA). No IRA's, 401ks(can I even open one since I already have a tax deferred profit sharing plan at work?), just starting investing in stock market via Buy&Hold DRIPs. AGI is low six figures. The rest of our "nest egg" consists of equity (around $400,000) in our primary residence and a vacation home. Things are looking pretty good at the moment, however, there is a good possibility my job/income may be greatly reduced over the next 5 years. In the meantime I hope to invest foolishly, but more agressively than I have in the past. My goal is to semi retire in 10 years, work part time, and hopefully live simply, but comfortably from income from investments that preserve principal. (Would like to leave something $$$ for my son). Am I on the right track? Sorry for the long post - any suggestions would be greatly appreciated!
Spockster
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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: 26116 of 75381
Subject: Re: to IRA or not to IRA? Date: 11/13/2000 11:57 AM
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Yes, you seem to be on the right track. You have solid plan and a good savings record.

401k's are usually available to all, but certainly if your employer offers one and you are not elegible, they will tell you. Max it if you can. You can do an IRA. Max it too.

In your tax bracket, you probably should focus on tax managed investments. Long term buy and hold in Rulemaker stocks is probably best. Second choice would be a tax managed mutual fund or an index fund. Otherwise think about real estate investments.

Best of luck to you.

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