No. of Recommendations: 2
You will only be able to make IRA or Roth IRA contributions in years when you have earned income. So if your income is not considered earnings, you may not be qualified for those either.

If you really must have tax protection, then your only choice is an annuity. However, Fools don't like them as they are often costly, and surrender fees make it difficult to change if you pick one that performs poorly. So make sure you check out the low cost ones offered by Vanguard, Fidelity and others if you choose to go with an annuity.

If you plan to do an Index fund, they usually have very low capital gains distributions. So long term buy and hold in a taxable account should work well for you. This gives you many options for your money with minimal income taxes--until you sell the shares to spend the money. Then you pay at capital gains rates.
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