I also have another 23k in rental income bringing total gross income of 133k. From what I've researched it seems I'd only be able to put a very small amount in an IRA. Any suggestions or ideas are appreciated, especially if you are in a similar situation and have first hand knowledge.
2007-09-12 18:25:13 · 6 answers · asked by jpsweeney77 1 in Business & Finance ➔ Personal Finance
Talk to the boss about opening a Simple IRA or SEP IRA. The contribution limits are higher than the IRA or Roth IRA you would be able to open on you own. The Simple and SEP are cheaper to open as opposed to a 401k as you would not need a third party administrator. You just need a financial advisor to help you set it up.
Outside of that, I would look into using a non-qualified annuity. You can put as much as you want in it and the taxes would be deferred until you took the money out.
Good luck
2007-09-13 01:44:59 · answer #1 · answered by dfrank04401 3 · 0⤊ 0⤋
You have plenty of options... first, depending your age, you probably DO NOT want your retirement plan money in a money market account. This is WAY to conservative... even if you are currently in retirement, or very close, you would want a more diversified, yet low risk portfolio.
You and your spouse can both contribute to IRAs. A Roth is an IRA that you pay taxes on now, and not when you take it out... this is a nice option for somebody who makes a decent income. A traditional IRA is just tax deferred.
If you have more then 10-15 years before retirement, I would be invested in a fairly aggressive, but well diversified, group of mutual funds that are concentrated on stocks. Go to fidelity.com as they have many good fund options, low costs, and you can set up an account online.
2007-09-13 06:54:32 · answer #2 · answered by docjulius 2 · 0⤊ 0⤋
Since you own rental properties, I would imagine that you have an LLC setup. As a member of an LLC, you can form a self guided 401k plan. These often have higher contribution limits and you setup any rules for matching that you want. My wife and I currently make about 170k between us so we don't qualify for a Roth. Since my firm does not offer a 401k, I'll be setting up my own.
2007-09-13 02:07:35 · answer #3 · answered by Jay P 7 · 0⤊ 0⤋
If your rental property is not in a LLC I would create one and get these properties into it. This will open up your investment limits on retirement vehicles and I would continue to buy property like jose suggested. Investing in yourself is better than investing in the stock market. Usually anyway. As heather said I would talk to a finacial advisor to find out exactly what you can do with your money to maximise your investments and returns.
2007-09-12 19:00:27 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Learn the difference between a traditional IRA and a Roth IRA. Invest in money market accounts. Talk to a financial advisor who you trust.
2007-09-12 18:49:01 · answer #5 · answered by HEATHER 6 · 1⤊ 0⤋
Put as much as you can in an IRA. Put more in other funds, bonds or stocks. Buy another rental or two. You rarely can go wrong with rentals as long as your buying a decent piece of property. As you know, they almost pay for themselves.
2007-09-12 18:34:34 · answer #6 · answered by Jose 4 · 1⤊ 0⤋