Re: Contributing to Roth IRAs while one of couple is FIRE'd
We *were* doing it that way, but I became pretty much disgusted with the fund offerings in my wifes 403b. Not that they werent bad to start with, but they've 'discontinued' half the funds I picked without replacing them with a similar offering.
This year we decided to take her income (all of it) for living costs, get rid of the bonds generating ordinary-income-taxable money, and turn the bulk of our investments to high dividend paying large cap value stocks. Given even our standard deduction and exemptions, we'll be paying in the ~5% bracket for our regular income and 5% on the equity dividends until 2007 when the tax on the equity dividends drops to zero. By largely living off my wifes income, we wont really touch the main taxable portfolio except for very large purchases, like a car.
Not as good as GOOD pretax plan, but I think its better than a bad one.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
|