No. of Recommendations: 1
taylorross,

JB mentioned the Roth IRA in his response, which is the most obvious way for you to invest after tax dollars if you are under the maximum AGI limits imposed by the legislation. I do not meet those AGI limits any more, so I figured not to be involved in the IRA world in the future. To do so would defer tax liability, but it would also convert the nature of the capital gains portion of my return to ordinary income.

In the last few days, however, it hit me that I might be able to use a standard IRA with after tax contributions to invest in the REIT and bond portions of my portfolio. Since the primary return on these types of investments is ordinary income related anyway, it still seems to make sense to defer the taxes on such income for the twenty years or so until I retire.

Any Foolish opinions out there?

WiseNLucky
Print the post  

Announcements

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.