vehicles to invest with retirement | TigerDroppings.com
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HailToTheChiz
North Carolina Fan
Chapel Hill
Member since Aug 2010
9820 posts

vehicles to invest with retirement

Scenario: employed with small business. No 401k plan. I've got a Roth ira going.

My question: once I max the Roth contributions, are there other vehicles to use aside from finding growth mutual funds? Stocks?

What is the best way to approach?


OceanMan
UNO Fan
Member since Mar 2010
5024 posts

re: vehicles to invest with retirement
This is a very broad question. How long until retirement? How much will you invest? Periodically or do you have a lump sum right now?

ETFs are something to look into. Its is hard to beat the return on an index fund in the long term. If you start a traditional IRA as well you will have some solid options just like your Roth


jimbeam
USA Fan
University of LSU
Member since Oct 2011
35879 posts

re: vehicles to invest with retirement
Thought you couldn't have both? Or couldn't invest more than 5500 between the 2 I should say


318TigerFan
Member since Sep 2013
831 posts

re: vehicles to invest with retirement
quote:

Or couldn't invest more than 5500 between the 2 I should say

I believe this is the case.


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GoIrish02
Notre Dame Fan
Metairie
Member since Mar 2012
138 posts

re: vehicles to invest with retirement
Add a Roth 401k to your plan ($17,500 salary deferral plus $34,500 in employer match) as your primary vehicle for your small business income and end your ongoing partnership with the feds. Plus you can still contribute to a Roth IRA independent of any 401k plan


Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
41501 posts

re: vehicles to invest with retirement
I think that assumes he is the owner of the small business.


Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
57964 posts

re: vehicles to invest with retirement
SEP, Simple IRA, tons of options


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318TigerFan
Member since Sep 2013
831 posts

re: vehicles to invest with retirement
Right. His post says "employed."


HailToTheChiz
North Carolina Fan
Chapel Hill
Member since Aug 2010
9820 posts

re: vehicles to invest with retirement
I'm not owner. I'm 27. Putting away 500 to ira per month. Trying to figure out what else to do rather than just the ira


bayoubengals88
Wisconsin Fan
LA
Member since Sep 2007
4735 posts

re: vehicles to invest with retirement
check out what your fellow Auburn poster bought in the post below yours.
He chose a high dividend yield ETF from Vanguard:

quote:

Going to go with VYM, thanks for the advice

64.54, a 15 P/E so a 4.30 per share


ETA: LINK
This post was edited on 5/2 at 9:29 am


dcrews
UNO Fan
Baton Rouge
Member since Feb 2011
9542 posts

re: vehicles to invest with retirement
quote:

Putting away 500 to ira per month.


I'm still fairly new to all this, but at this rate you'll exceed the 5500 limit for a Roth (assuming 12 months and no contributions being applied to prior year).

What happens if you exceed that amount?


ds1tiger
LSU Fan
Closer than you think
Member since Apr 2006
272 posts

re: vehicles to invest with retirement
I'm into VYM and will continue to pump $$ into it.


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HailToTheChiz
North Carolina Fan
Chapel Hill
Member since Aug 2010
9820 posts

re: vehicles to invest with retirement
I didnt think I could exceed that amount? I plan on all 5500 going to that ira


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ForeverLSU02
Penn Fan
Albany
Member since Jun 2007
31164 posts

re: vehicles to invest with retirement
quote:

'm still fairly new to all this, but at this rate you'll exceed the 5500 limit for a Roth
I think he may have been estimating. $5500 for 12 months would be $458/month


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TigerstuckinMS
LSU Fan
Member since Nov 2005
5440 posts

re: vehicles to invest with retirement
quote:

What happens if you exceed that amount?


I think you pay penalty taxes every year on the excess and any positive returns from the excess until the excess has been taken by the government or you move it out of the IRA. You have until the tax filing deadline to avoid the overcontribution penalty, so there's a window between the end of the year and filing deadlines to properly adjust the account balances. Of course, there may be other penalties involved in moving money out of a tax-favorable account early...

I also think you might be able to apply over-contributions towards the following year's IRA limits, within boundaries. I'm not sure on that, though. I generally try to make sure I'm short on Dec. 31 and make final contributions to get me up to $5500 total once I start doing my taxes (tax filing day is also the deadline to make contributions for the previous tax year) to avoid going over.
This post was edited on 5/2 at 4:45 pm


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