Skip to main content
No. of Recommendations: 0
Lots of advice back and forth. I hope I don't add to the noise.

Non-deductible IRA: Don't do it. Any money that comes out of it will be taxed as income -- and your income taxes are not going to get lower.

You state you are concerned with taxes, well then a tax-advantaged or even a normal stock mutual fund would likely serve you best. Congress just passed an extension to the 15% rate for LTCG and divs to 2010. There is a good chance that it will eventually be perm. You probably will never get close to a 15% tax rate on any of the money in your 401k, or what you would put on an IRA.

I am in a similiar boat, I want to retire prior to SS kicking in and I do a taxable brokerage account because I don't want so much of my money in an account that will be subject to income taxes in the future.

Imagine if at retirement, your state and federal income taxes are 65%, think you still have enough money saved to retire if you were banking on a tax rate of just 45%?
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.