Originally Posted by Foodeefish
Our 401K plans are maxed out, make too much for IRA's, and we were going to look at Municipal bonds, REITs and Index Funds to put this $9000 per month into.
Any advice or guidance which way we should invest this $9,000 each month?
Don't forget (as Nords helped enlighten instruct me in one of his posts a while ago)...if you make too much to contribute to a ROTH, and you can't deduct a Traditional IRA contribution, you can make NON-DEDUCTIBLE traditional IRA contributions at ANY income level (still the same limit of $4,000 (for 2006) in non-deductible contributions per year)
Sure, you don't get to deduct it, but you still gain the advantage of tax-deferred growth. Just make sure to never roll any ROTH, 401(k) or other IRAs into the same account, or you'll be asking for a paperwork and calculator nightmare.
Also, I would be committing heresy if I didn't honor dear ol' Uncle M by beating him to his infamous quote
psssst.....Wellesley (offered by Vanguard)
At your funding rate, you'd be a Voyager client (get reduced commissions and even lower mutual fund expense ratio fees) in about 3 years, when your balance in all accounts gets to $250k.
Any chance you are self-employed or your spouse is/can be? There are many other ways to jack up that $15k/year 401(k) limit if you can be an independent contractor or self-employed.
One last note....if you regularly engage in donating money to 501(c)(3) organizations, you might consider setting up a Charitable Trust held by Vanguard. It lets you donate a lump-sum today (or an amount this year and any amounts in future years), and you take the donation as a deduction against your taxes in the year it was made. You then tell Vanguard how to manage the money, and then tell them to make out checks to whatever registered 501(c)(3) groups ($500 min. check amount) you wish whenever you want to. Minimum initial contribution to start an account is $25k, with minimum additional contributions of $5k.
It allows you to let the money grow "tax-free" in the Vanguard trust account (i.e. not in your account), and you get to take the deduction in a year that may be higher income than later years (which it sounds like you might be in, with that extra $25k from your previous employer). You can find out more at
T Rowe Price also has a similar service at