anonymous_fred
Dryer sheet wannabe
- Joined
- May 30, 2007
- Messages
- 19
Hello,
I'm new here, and am interested in picking everyone's brain on investing ideas for relatively affluent younger people. My wife and I are both in our early 30s, and would like to be able to retire by age 40 (we don't have immediate plans to retire at that age; we would just like to have the option).
We pay a marginal tax rate of about 42% for state + federal taxes. We max out our 401Ks, and do not qualify for IRA contributions. We save around $100K per year: $30K inside our 401ks and $70k in taxable accounts.
Obviously we are getting reamed on taxes, such that the $70k in taxable savings ends up costing us somewhere around $110k. Our taxable savings are invested in relatively tax efficient index funds (Vanguard Target Retirement).
I'm interested in any other tax deferral strategies aside from the 401k. Any ideas? I've looked a little into annuities, but they seem fraught with sketchy sales pitches. The non-qualified to Roth IRA rollover is enticing (though not really a tax deferral strategy), but I'm not confident that loophole will remain open after 2008.
I'm new here, and am interested in picking everyone's brain on investing ideas for relatively affluent younger people. My wife and I are both in our early 30s, and would like to be able to retire by age 40 (we don't have immediate plans to retire at that age; we would just like to have the option).
We pay a marginal tax rate of about 42% for state + federal taxes. We max out our 401Ks, and do not qualify for IRA contributions. We save around $100K per year: $30K inside our 401ks and $70k in taxable accounts.
Obviously we are getting reamed on taxes, such that the $70k in taxable savings ends up costing us somewhere around $110k. Our taxable savings are invested in relatively tax efficient index funds (Vanguard Target Retirement).
I'm interested in any other tax deferral strategies aside from the 401k. Any ideas? I've looked a little into annuities, but they seem fraught with sketchy sales pitches. The non-qualified to Roth IRA rollover is enticing (though not really a tax deferral strategy), but I'm not confident that loophole will remain open after 2008.