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Subject:  Re: Pearlstein on Panic Stage Date:  1/16/2008  3:59 PM
Author:  markr33 Number:  22725 of 36901

<<You're never limited to only investing in a Roth IRA. There are many ways to save for retirement...>>

Yes, but how many of those are tax advantaged? If one neither works for a company with a 401(k) or pension program nor is self employed and thus eligible for a SEP-IRA, there aren't many options. For the record I am an academic funded by a stipend from an agency of the Federal government; I am not considered an employee of my sponsoring institution, even though they voluntarily provide me with medical benefits.

Most tax advantaged retirement plans (except for the Roth) are tax-deferral vehicles. There are a number of ways to accomplish tax deferral without any plan. For example, you could purchase savings bonds and get up to 30 years of tax deferral. Another example would be to purchase equities that gain in value but don't pay out dividends (for example, Berkshire Hathaway) and keep them until retirement. Yet another example would be to purchase tax efficient mutual funds that defer gains for some time.
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