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I am currently employed with a small firm that does not offer any retirement options. My salary also exceeds AGI requirements for IRA contributions. I am speaking with my company to set up some type of retirement plan, but what else can I do to help grow a retirement portfolio with tax advantages? Everything I read, seems that I am out of luck since I fall into a unusual category.
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I am currently employed with a small firm that does not offer any retirement options. My salary also exceeds AGI requirements for IRA contributions. I am speaking with my company to set up some type of retirement plan, but what else can I do to help grow a retirement portfolio with tax advantages? Everything I read, seems that I am out of luck since I fall into a unusual category.

You are eligible for a traditional IRA. The income limit only applies if you have a pension plan at work. Other than that, I don't know of any way other than variable annuities and I don't like them. I'd use some of Vanguard's tax avantaged funds, like Vanguard Tax Advantage Equity Income Fund.
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Invest in an Variable annuity
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Of Course there are income limits to deduct an IRA...you already knew that...Most people are uneducated re Variable Annuities....Agreed a tax-advantaged fund is ok if you plan on never selling the fund...i.e changing you asset allocation. Everytime you rebalance your portfolio it is taxable 20% for most people. You can re-balance in a V.A. without any tax liability. You can have multiple fund family managers with one statement (Janus, Fidelity, MFS Putnam Marsico etc) and you can have all those managers for a relatively small investment. Yes there is a M&E charge but I'd rather pay the 1% fee than the 20% cap gain to Uncle Sam....Capiche?
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Mookie123 writes:

Yes there is a M&E charge but I'd rather pay the 1% fee than the 20% cap gain to Uncle Sam....Capiche?

Very well, thanks. The question is do you?? It's true most folks are uneducated about variable annuities. It's a shame, that. If more knew the ins and outs, they wouldn't sell as well as they do.

Variable annuities are fine for some folks, but not most. And given a 20% tax on gains at best versus a 28% or higher on gains in an annuity, guess which I would prefer? And also given a 0.2% fee in something like the Vanguard S&P 500 versus a 1% M&E in a variable annuity, is there any question in your mind which I would prefer?

As I said, variable annuities have their place. Just understand when they do. For an idea on what I mean by that, see my annuity articles beginning at http://www.fool.com/retirement/annuities/annuities01.htm?ref=LN

Regards..Pixy
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