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We own a business and make too much money to real take advantage of a 401K and Roth; I am not able to contribute to the limit because of rules that require me to stay nearly in line with what my employees contribute. We'll still contribute to them, though. Our adjusted gross income may be too high to contribute into a Roth.

Look into making your 401(k) plan a 'safe harbor' plan. That will allow you and your partner to each contribute the max. It will also require that you provide a match to your employees, but the tax benefits (match is tax deductible to the business and you individually can contribute more pre-tax), and the ability to decrease your MAGI so that you can make a full contribution to a Roth IRA may be worth it. You can read about safe harbor plans here:

Also, you may want to look at providing a Roth 401(k) option as part of your 401(k) plan, especially if you are running into the Roth MAGI limit, even after any pre-tax 401(k) contributions.

1. 6K Roth IRA (two of us at 3K annually)

Assuming your and your partner are each unmarried, at your ages for 2007, you can each have a MAGI up to $99k to make a full $4k contribution; the contribution then phases out up to $114k. For 2008, Roth contributions are $5k each, at your ages. The MAGI limit for the full contribution is $101k, phasing out at $116k. Be sure that you understand the MAGI limits and how much each of you will individually be able to contribute. You can read about the MAGI and how to calcualate it in IRS pub 590:

2. 10K into the company's 401K (Vanguard 500 and Int'l index funds
3. 19K into Vanguard 500 and Int'l index funds

You may want to look beyond the universe of Vanguard 500 and International index funds - like the Total Stock Market index or mid-cap and small-cap index funds.

I'm starting to read up on annuities, also. Is there anything there I should look at?

Unless you have a real desire to have a very expensive and inflexible investment, annuities may be the wrong avenue to pursue.

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