Worried about over-contributing to 401k & Roth?

[retire@40]

Re: Worried about over-contributing to 401k & Roth

The I-bonds were acquired over the last few years...A substantial portion of them are earning interest at 5.4% and 4.1% respectively, which is pretty good in my book for a (virtually) risk-free investment that is also tax-free.

How are I-Bonds tax-free investments?

 

[charlie]

Re: Worried about over-contributing to 401k & Roth

I-bonds are tax free at the state level and local level'
but tax deferred at the IRS level unless spent on education.

Cheers,

Charlie

 

[soupcxan]

Re: Worried about over-contributing to 401k & Roth

Yes, I need to update that...it should say "possibly" federal tax free but definitely federal tax deferred.

I-bonds are tax free at the state level and local level'
but tax deferred at the IRS level unless spent on education.

Cheers,

Charlie

 

[Berkshire_Bull]

Re: Worried about over-contributing to 401k & Roth

DRIPS aren't a bad deal, it just takes a file for each company you own, and when you sell, just throw the numbers into a spread-sheet and out comes your cost basis. It IS managing your own mutual fund, and while it's more work it's also more fun for some people. I'd imagine a lot of the people that would take the time to read and post on here think more about their money (or their investment direction rather) than the general population, and would enjoy being proactive in their investment process. I know I certanly am.

 

[unclemick]

Re: Worried about over-contributing to 401k & Roth

Yep - two file cabinets, a spreadsheet, 40 DRIPs over the past 15 years. So far it's still fun.

I notice those dirty birds at Wellington, Vanguard Value Index, Wellesley and to a lesser extent. Dodge and Cox - own a lot ot the stocks I do - in their top ten -

Hmmmm - are they copying me - heh, heh, heh - or vice versa?

15% for the above - the other 85% is in balanced index and includes about 10% of the 85% in REIT INDEX. All of which I haven't touched since 1998.

My quest for the 'value premium' and/or the holy grail type stock is confined to the 15%.

But - also have some hot stocks like Con ED, National Fuel, Washington REIT, Eli Lilly, Aqua America, Excelon, JM Smucker - the real swingers.