No. of Recommendations: 1
You should fund your Roth because it grows tax free for life with no income taxes ever unless you miss the 5 year holding rule and it has termendous estate planning possibilities. You never have to withdraw you funds unless you want to. In other tax-deferred accounts you have Minimum Required Distributions at age 70.5. The rule that we follow in our investment study group is that you:
1st. Match any money from your employer in your tax-deferred account. 403b, 401k,
2nd. Fund your Roth for you and your spouse.(2000+2000)
3rd. Max out your tax-deferred accounts. 403b, 401k
4th. If you have any money left to invest, you then buy a growth stock that pays no or low dividends. This way you never pay taxes until you decide to sell. Then you pay only capital gains taxes which will be lower than ordinary income taxes. Berkshsire Hathway would be a stock that meets that criteria. There are others that would also meet this criteria.
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.