I am employed by a small company that does not offer a 401(k) or any type of retirement package. I am 28 years old and make a solid income. My previous employer offered 401k which I did utilize. Now I make my max $2000 annual contribution to IRAs but am wondering what else I can do. I still invest after the IRA but without tax exemption. What are my options? Next year I may lose my IRA exemption as well. After looking at retirement planning, someone in my situation is given any routes to take by the fed govnmt. Any suggestions are welcome.Jim.
You can contribute $2000 a year to a non-deductible traditional IRA even if you have Bill Gates' income, so that isn't a problem. Consider picking stocks among those that pay little or no dividend, and buy and hold. You don't owe tax until you sell, even if that is decades. You can also consider index funds, and there are other tax-managed mutual funds. Best wishes, Chris
There are ways to put away money after tax and have it grow tax deferred. The only way to put away money pretax is to have your employer start up a nonqualified deferred compensation plan. Such a plan could just be set up to cover you. The start up costs for the employer would be minimal and it could be designed so that they recover that and make a profit.Matt Tuttle
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