IRAs seem pointless as it's only 4k a year and it appears it won't be tax deductible either as I put in my max allowed into my 401k every year. What other options are ther eto not be taxed so much on my earnings?
2007-11-18 01:46:59 · 12 answers · asked by Hope The Best - Expect The Worst 2 in Business & Finance ➔ Investing
I'm 30 years old, and am the CIO of company. I've been in the IT field since I was a teenager.
2007-11-18 02:00:45 · update #1
If you are investing for the long term, I wouldn't worry too much about taxes. Long term capital gains are taxed at a lower rate than short term capital gains. Also, tax-free bonds don't yield much of a return.
Also, it depends on how much time that you are going to invest managing your investments. If you don't have the time to manage/learn about your investments, then invest in mutual funds. With the US dollar being so weak, I would invest in international funds at the moment.
If you have time to manage your investments, you can research companies and buy their stock.
If you wish to speculate some, you can invest in real estate since the market is tanking due to the sub-prime woes. These would be investments that you would have to hold on for a few years until things get corrected.
Either way, before you decide to do any investing, take the time to learn about investing in general.
2007-11-18 02:42:16 · answer #1 · answered by Steve 6 · 0⤊ 0⤋
Try money markets or stocks. Money markets allow you to get money out (cd's make you keep money in for the number of days you create the cd for) so if you run into financial trouble (you never know) you will not be tied down to not being able to use the money. IRA's aren't so pointless either. How old are you? If you're young and you do 4k year, it actually could make you very rich as you get older. Stocks are also great but risky. I'd contact a financial planner for more info.
2007-11-18 01:52:40 · answer #2 · answered by drunksurf 2 · 0⤊ 0⤋
You are NOT the CIO of a company, or if you are, you won't be for long!
Saying "IRAs seem pointless" because they are only $4K a year shows a level of mathematical incompetence that is almost "High School-esque", LOL! You are aware that $175,000 is actually only 175,000 single dollars, are you not?
If you DO make $175,000 and can't figure this out, you deserve to lose it all to someone smarter than you!
2007-11-18 03:18:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Go find a for-fee professional financial advisor. You'll pay several hundred dollars for the consultation, but it's probably better advice than what you'll get from a "free" one. The free advisor will only sell you stuff that pays a commission to him, so you may or may not get the best advice.
Here, you're getting advice from anyone with a modem and a few spare minutes. That's hardly the same qualifications as someone with training and experience and connections would have.
2007-11-18 01:57:55 · answer #4 · answered by Ralfcoder 7 · 0⤊ 0⤋
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2016-10-02 02:27:29 · answer #5 · answered by chunaram 4 · 0⤊ 0⤋
See a fee-only advisor. There are literally hundreds of tax-advantaged investment programs available in the US. D
You should also talk to your advisor about the home you own outright; this is a very, very poor use of capital. If the advisor can identify attractive opportunities, you will want to borrow against the value of the house and invest the cash elsewhere. D
2007-11-18 16:09:29 · answer #6 · answered by HeavyD 3 · 0⤊ 0⤋
Home values are plummeting so pick up several homes at a fraction of their cost. When the Real Estate market recovers sell your holdings for a huge profit. You can grab a $500K house now for about $350K. Multiply that by ten and your million will be just several years away. If you have to lease out with buy option.
2007-11-18 01:58:10 · answer #7 · answered by Anonymous · 0⤊ 0⤋
There are several possibilities, but which one is/are the right one(s) for you can not directly be answered right here on Yahoo Answers, because the right outcome depends on many different criteria, your plans now, soon and in the future. More information would be needed. Consult a Planner nearby or just email me.
2007-11-18 03:58:54 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Given your income and assets, I would use the services of a professional financial planner.
2007-11-18 01:50:49 · answer #9 · answered by Anonymous · 0⤊ 0⤋
If you really make $175,000/year, which I highly doubt, why are you asking a question like this on Yahoo Answers,,,?
2007-11-18 01:53:59 · answer #10 · answered by GUARD DOG 4 · 0⤊ 0⤋