This board has been migrated to our new platform! Check out the new home page at discussion.fool.com or click below to go directly to the new Board on the new site.
You already have this message marked for reply in your Favorites.
I figured that subject would peak someone's interest. I am , in fact, looking for a financial model or calculation to help with an impending investment decision.I am trying to determine if a non-deductible IRA will be better than a standard brokerage account as a savings vehicle for retirement.The following facts and assumptions are at work here:* I contribute the max to my 401k (an index fund)* My wife does not have an employee sponsored plan* Our AGI exceeds the limits for any deductible contributions* We will apply the same investment approach to either the std. brokerage account or a self-directing IRA(possibly Foolish four or a buy and hold strategy)* Our needs in retirement will be 100K annuallyI guess the real question(s) boils down to: Will the tax deferred growth of the non-deductible IRA outweigh the benefits of only paying capital gains on the std. brokerage account?I have been unable to locate or derive a good model to take into account he tax deffered growth and the long and/or short term capital gains implications.Sorry for the lengthy messasge...any help/advice would be greatly appreciated. Thanks in advance.
Best Of |
Favorites & Replies |
My Fool |