yeah thanks I have been all over that Vanguard site lately,really good info there,I want to just set something up that I can have taken out of my checking account every week and I think I have that part figured out.I think the Roth is the better deal,but I also want to get going on some of those index funds too.

 

I wish Steve would give me some of his fortune so I could get into the DFA fund,c'mon Steve all it takes is a min of 100k....

 

That depends on what you're philosophy on the market is (once you've gained an understanding) and whether or not you believe a managed portfolio can consistently beat the market.

But in the end...
...that is what matters most. The last thing you want to be doing is stressing out over your nest egg all the time.

 

I am wondering if it would be overkill to have a SEP-IRA and a Roth IRA?

My thinking is that I could theoretically invest up to 25% of my profits in the SEP-IRA which would be a tax deduction,with taxes due upon withdraws,and the the Roth I could invest up to $5k after tax money and then have some no taxed money mixed in with the other at the end.Thoughts?

I would still do a portfolio of low cost index funds.or better yet a retirement target fund.

 

Roth vs. Regular IRA. It boils down to one question: In retirement, will your taxable income be higher or lower than it is now? If you're paying 20% in taxes now and you expect to only be paying 15% after retirement, it makes no sense to have money in a Roth.

With some analysis and planning you can some to a pretty reasonable estimation for retirement. The hardest part of the picture is not knowing what the tax and regulation picture will look like in 20+ years. Most planners take the position that, regardless of what happens down the road, having a chunk of income that isn't taxable is a good thing. They advocate maxing out your Roth first before moving to the next vehicle, such as a SEP. If you expect your earnings to be fairly consistent and you want the simplest approach, this is tough to beat.

I like that strategy I mentioned above because our taxable income fluctuates quite a bit. Fluctuations occur due to tax issues, like Rev mentioned in the other thread. For us, they also occur due to a variable work schedule. Some years we work steadily throughout the year. We've also been known to take an entire year off. In the higher income years we contribute to a standard IRA type (IRA, SEP, or Solo 401(k)) for the tax break. In years with lower taxable income, we make the contributions to the Roth, but also shift funds from the standard into the Roth. There is a pretty decent benefit from doing it this way but it can get a little complicated and requires both strong knowledge of your personal tax situation and a bit more planning.

In any case, there's no downside to having both a standard IRA and a Roth open to choose from.

 

I had a SEP-IRA before we incorporated and I really liked it. Of course you can have the same investments in any of them just a question of tax consequences. I highly recommend Vanguard DBS. You can invest in stocks,bonds,cd's, or mutual funds. You can invest in Vguard funds or a lot of other families @ noload.

 

I think saving money for retirement is a waste of time. The best way to retire is to create a business that brings in PASSIVE INCOME so that you don't have to work. As long as the income you receive is greater than your expenses, you can consider yourself retired. My personal plan is to have a couple of paid-off trucks with trailers, a couple of drivers, and find someone to manage the biz. Most wealthy people invest in 1) own business; and 2) real estate.

You know trucking, right? Why not invest in something you know?

 

I do my investing through Fidelity and Edward Jones.

 

what percentage of pay should one invest.. :?: :?: ..being a young (eh hmm) :roll: 47 what would be acceptable..... :idea: :idea: :arrow: :arrow: :?: :?: :!: 8)