Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
No 401k, How to invest after IRA
Old 10-04-2015, 12:52 AM   #1
Dryer sheet wannabe
 
Join Date: Jul 2014
Location: South Texas
Posts: 19
No 401k, How to invest after IRA

Hello,

My employer does not have 401k plans unfortunately, im 28 yrs old and I finally paid off my student loans and starting with my IRA this year. After maxing 11k on me and my wife IRA, where can i put my money to best invest. I only have low int debt of 3 percent (wife student loans, mortage).

When she starts working maybe we can get 401k via her job.
__________________

__________________
Davaldez21 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-04-2015, 07:39 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,446
Do you qualify to have a HSA?

Otherwise taxable accounts are fine. If you invest in equities in taxable accounts you get a preferential tax rate on qualified dividends and long-term capital gains of 0% or 15% (vs 15% or 25% rates on interest in the same tax brackets).
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 10-04-2015, 10:09 AM   #3
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Eagan, MN
Posts: 3,055
There is always an after tax savings. My after tax savings is larger than my pre-tax savings (Roth, HSA, after-tax).

Counting my real estate, it's about 4x what my pre-tax savings is.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is online now   Reply With Quote
Old 10-04-2015, 12:37 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
Open a Vanguard/Fidelity/Schwab/etc. brokerage account. Invest in something that throws off little yearly income or capital gains. Index equity funds would fit about as well as anything. You're trying to avoid paying taxes other than capital gains due to selling shares far in the future. If you are in the 15% tax bracket, qualified dividends and capital gains may be taxed at 0%, which would help out.

I don't worry about it too much. Pretty much my normal AA in our taxable accounts. No need to distort your AA just to avoid some current taxes.
__________________
Animorph is offline   Reply With Quote
Old 10-04-2015, 01:29 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Quote:
Originally Posted by martinitosnl View Post
Hello,

My employer does not have 401k plans unfortunately, im 28 yrs old and I finally paid off my student loans and starting with my IRA this year. After maxing 11k on me and my wife IRA, where can i put my money to best invest. I only have low int debt of 3 percent (wife student loans, mortage).

When she starts working maybe we can get 401k via her job.
Do you/your wife have any income from self-employment ( a small sideline business, etc?)? If so, you could contribute quite a bit to a "Solo 401K" or a SEP-IRA.

You said "IRA", but if your tax bracket now is lower than you expect it to be in retirement, you might want to consider a Roth IRA. No tax deduction today, but entirely tax free later. As a bonus, any contributions to a Roth can be withdrawn at any time tax free and without penalty (which is something you wouldn't want to do, but in this way the Roth can double as your in extremis emergency fund. Earky withdrawals from a traditional IRA can be heavily taxed/penalized). Typically, people at the start of their earning years can be better off with a Roth. while a "traditional IRA" is optimum when they start being taxed at rates above the rates they expect to experience in retirement.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is online now   Reply With Quote
Old 10-04-2015, 07:22 PM   #6
Dryer sheet wannabe
 
Join Date: Jul 2014
Location: South Texas
Posts: 19
Thank You for replies.

I work in the medical field, no HSA since our health insurance is free, part of my job. I would have to talk to my tax agent about a solo 401k.

Additionally we currently make 140k, my wife will start working in 24 months, we should be at 180-200k (I would be working a few less hrs once she starts working).

I was hoping to do a traditional deductible IRA due to my tax bracket. If I do regular deductible IRA can I switch it and pay taxes at the end of the year. My problem is that when I go to Vanguard Account it asks to choose between roth or regular IRA before opening act.
__________________
Davaldez21 is offline   Reply With Quote
Old 10-04-2015, 08:56 PM   #7
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 1,712
Quote:
Originally Posted by martinitosnl View Post
....

I was hoping to do a traditional deductible IRA due to my tax bracket. If I do regular deductible IRA can I switch it and pay taxes at the end of the year. My problem is that when I go to Vanguard Account it asks to choose between roth or regular IRA before opening act.

If you open a traditional (aka regular, non-Roth) IRA, then Vanguard will not know if it is to be used for a deductible vs. non-deductible purposes.

Each year, you will have the option to deduct your IRA contributions to this type of IRA, if you meet the IRS requirements (ie. minimum and maximum earned income).

You can deduct one year and then not deduct the next year. If you make non-deductible contributions you will need to remember to fill out IRS form 8606 which will keep track of your non-deductible contributions so that you can withdraw the contributions later without taxation (but any earnings would be taxed).

-gauss
__________________

__________________
gauss is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Early withdraw from Roth IRA after 401K transfer FIRE man FIRE and Money 6 06-09-2015 12:50 PM
Rolling a 401k into another 401k 'OR' Roth IRA? MrTux Young Dreamers 10 07-04-2009 04:30 PM
Where to Invest After Your IRA Is Maxed? TonySoprano24 FIRE and Money 9 05-29-2009 06:50 AM
401K, Roth IRA, Roth 401K - Need advice please tsturbo FIRE and Money 15 05-10-2009 03:08 PM
IRA contribution after 401k max-out? Marquette Young Dreamers 4 01-31-2008 07:21 PM

 

 
All times are GMT -6. The time now is 05:37 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.