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Author: BillKi Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75791  
Subject: WannaBe Fool with IRA Questions Date: 1/5/2000 9:54 PM
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I want to save some additional money for retirement. I have been exploring this site for several weeks, and have bought a couple of books on the subject, of course one of them was the Motley Fool book "You have more than you think" I have another couple from Suzi Orman, but I still have questions.

I have a fully vested pension fund with the teamsters. I am currently participating in my employers 401K where I am putting 14% of my salary (they match part of it, so will continue with that). My AGI for last year was 55,000 and I understand that excludes me from investing in a traditional IRA.

So now I am thinking about a Roth IRA and from what I have read, it works for me. I intend to leave the money in there until I decide to retire (God knows when that will be!) and regularly add to it.

It appears that I am limited to 2000 per year. Is that right?

I have about 3500 tucked away in a savings account and thought I would use it to invest in something that earns more than the 2.75% it is now getting!

After much reading, it appears that Index Funds would be a good vehicle for me as I am not yet comfortable with individual stocks.

I intend to open an account with a discount brokerage and am currently investigating the choices.

I would appreciate any thoughts.

Thanks
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Author: Chipsboss Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17411 of 75791
Subject: Re: WannaBe Fool with IRA Questions Date: 1/5/2000 10:33 PM
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for BillKi --

"currently investigating the choices" One of your choices is to deal directly with Vanguard at www.vanguard.com and through the US mails. This is probably the lowest cost approach -- Vanguard charges no load or commission, and only 18¢ per $100 per year for managing the money (deducted automatically from your account) invested in their S&P 500 index fund. The discount brokerage would charge something, at least, for its services but you probably don't need those services. Since index investing has minimal costs as part of its basic idea, I recommend this approach. Money where mouth is: all my new investments in the last seven years, including a 401 k rollover to an IRA, have been in Vanguard's Index 500 fund.

Regards,

Chips

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Author: AliFool Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17419 of 75791
Subject: Re: WannaBe Fool with IRA Questions Date: 1/6/2000 12:50 AM
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QQQ is another retirement investment that I particularly like. That is, if you can stomach the ups and downs of the Nasdaq 100, and be confident that in several years or decades, it will be sky-high.

--AF

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Author: Bobbcat Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17452 of 75791
Subject: Re: WannaBe Fool with IRA Questions Date: 1/6/2000 6:49 PM
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It appears that I am limited to 2000 per year. Is that right?

Bill,

If you are married, your wife may also contribute $2,000/year to an IRA.
Deductibility to a traditional IRA for her may be limited by:
if she is not employed outside the home... combined AGI
if she is employed outside the home... combined AGI or eligibility for a retirement plan.

*Cat

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