Dec 5

Why should I have a vehicle to keep my mutual funds in? They are easily accessible when needed. I will be taxed at both points in time with or without a traditional IRA. The roth is not an option.

4 comments so far...

  • Screaming Eagle Said on December 5th, 2009 at 3:08 am:

    You get a tax deduction this year for your contributions.

    Tax Deffered Gains

    No worry about paying taxes every time you sell a stock. No taxes on dividends either.

    You only pay taxes on distributions after you retire, so you have more cash to reinvest, so your money grows faster.

  • dave b Said on December 5th, 2009 at 3:27 am:

    I found that my IRA was doing better because It pays the same interest each month ,where other investments go up & down & you can loose in the end

  • Derrick Said on December 5th, 2009 at 3:28 am:

    The traditional IRA allows you to earn tax deferred money, meaning that you can earn a little more

  • Kitty Said on December 5th, 2009 at 4:01 am:

    True ! You WILL BE taxed at some point. so now you simply get to decide if you want a tax break now with the IRA and pay tax later OR pay annually with your mutual funds and stocks.

    I personally do BOTH. I figure I have no problem paying my tax on the gains I make annually so I do! I feel later on the government will probably raise its tax and my IRA will be taxed bigger than if I had paid it NOW. But I will have to live with that when the time comes.

    The ROTH is good for people who need to be able to touch their money… personally I think its a joke for if I am to invest in my IRA I certainly SHOULD NOT be touching it!!

    You already seem to have your answer in the way you asked your question. You will be fine. Posting it here should prove interesting !

    Best wishes for a bright future !!

    : )

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