Return to the Household Finances Forum | Post a Follow-Up

o
Lady Luck

clip this post email this post what is this?
see most clipped and recent clippings
Posted by Sailfish (My Page) on
Tue, Jan 18, 05 at 21:47

My three month trial in the trading arena has brought me 20%. Looks like I'll be handing over some loot the the goverment come April. Should Lady Luck continue to grace her presence through 05 I'll have to do the same again. Is there anyway to tax defer a precentage of the earnings? I dont have an IRA or 401k.. Should I start one of these? Any other ideas? TIA

Follow-Up Postings:

o
RE: Lady Luck

clip this post email this post what is this?
see most clipped and recent clippings

You should most definitely have an IRA! and if you fall within the income guidelines I would urge you to set up a ROTH IRA. These are funded with income that's already been taxed and so, will grow and be available to you TAX FREE. The allowable contribution is 4K for 2005 ($4500 if you're over 50 and take advantage of the "geezer provision"). If you prefer, you can contribute to a regular IRA (same amounts) and take a deduction on your taxes... but you will be taxed on the withdrawals required when you attain retirement age.

There are other benefits to ROTHS, I suggest you search and read all about them. If you use an accountant he will be able to suggest other things you can do to salt away money for your retirement. But don't wait to do this! it's easy to do and you will be amazed at how the money will begin to accumulate and begin compounding... and compounding is the key to really savvy investing and saving!

o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!

Return to the Household Finances Forum

Instructions

  • You must be a registered member and logged in to post messages on our forums.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review the contents and make changes.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • It is illegal to post copyrighted material without the owner's consent.
  • HTML codes are allowed in the message field only.
  • No advertising is allowed in any of the forums.
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.



 
Click here to learn more about in-text links on this page.