No. of Recommendations: 0
I am in the same situation as you, but offer one consideration no one has mentioned. This is only applicable if you have already max out your 401(k) every year and have plenty of retirement funds already in taxable accounts.

I started a non-deductible IRA about 5 years ago just to use as a kind of mad money investment account to pursue flyers in the market where I wanted to get in and out of stocks or other investments very quickly, often in less than one year. The advantage of doing so in a IRA is that you do not have to pay taxes on any gains. If I did these trades in a taxable account, I would pay 40% state and federal taxes on these types of investments. I find it to be very lucrative to do this in my IRA. I know people shouldn't normally gamble with an IRA, but I don't consider my traditional IRA to be retirement money, but rather tax free investment money for short-term investments. My 401(k) and other taxable accounts are my retirement.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.