MB
July 28th 03, 12:15 AM
Group
I was hoping to hear some of your thoughts about retirement accounts. I am
planning on starting a retirement investment account (invested in mutual
funds). I am 25, married, and in a lower tax rate. I have paid down most
of my high-interest debt, with the exception of some remaining student loans
and a car loan. While I realize the importance of paying down this debt, I
am anxious to start investing in the future.
I don't feel that I really need a break on my taxes right now so I am
leaning toward a Roth IRA. I also like the idea of being able to withdraw
my contributions (without penalty) in an emergency. However, I like to
think that I will not be in a lower tax bracket by the time I retire. If I
start a Roth now, can I start a traditional IRA later in life when the
immediate tax break would be more beneficial? I have briefly read over the
IRS's rules for rolling over IRAs, but most of the information I found is
about going form a traditional to a roth. I am interested in going the
other way. Should I just go straight for the unsheltered mutual funds? Any
thoughts would be appreciated. Thanks in advance.
MB
I was hoping to hear some of your thoughts about retirement accounts. I am
planning on starting a retirement investment account (invested in mutual
funds). I am 25, married, and in a lower tax rate. I have paid down most
of my high-interest debt, with the exception of some remaining student loans
and a car loan. While I realize the importance of paying down this debt, I
am anxious to start investing in the future.
I don't feel that I really need a break on my taxes right now so I am
leaning toward a Roth IRA. I also like the idea of being able to withdraw
my contributions (without penalty) in an emergency. However, I like to
think that I will not be in a lower tax bracket by the time I retire. If I
start a Roth now, can I start a traditional IRA later in life when the
immediate tax break would be more beneficial? I have briefly read over the
IRS's rules for rolling over IRAs, but most of the information I found is
about going form a traditional to a roth. I am interested in going the
other way. Should I just go straight for the unsheltered mutual funds? Any
thoughts would be appreciated. Thanks in advance.
MB