tag:blogger.com,1999:blog-22906998.post458958765665716602..comments2024-03-26T22:42:06.412-07:00Comments on TAG Blog: Retirement Moolah AccumulationSteve Huletthttp://www.blogger.com/profile/05537689111433326847noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-22906998.post-25804033027043540152013-01-20T19:08:41.231-08:002013-01-20T19:08:41.231-08:00You can build fine tax efficient investments outsi...You can build fine tax efficient investments outside of 401(k) plans and IRAs. <br /><br />Vanguard Total Stock Market Fund (domestic)<br />Vanguard International Stock Index Fund<br />Vanguard Intermediate Tax Exempt Bones<br /><br />The disadvantage to doing this is: you get less tax-favored treatment from federal and state tax law. (And no pre-tax dollars into your investments.)<br /><br />The advantage to doing this is you can tap into the money when you need it., without tax penalties T he investments will be taxed as capital gains, not income.Steve Huletthttps://www.blogger.com/profile/05537689111433326847noreply@blogger.comtag:blogger.com,1999:blog-22906998.post-8354432830110811122013-01-20T11:16:21.967-08:002013-01-20T11:16:21.967-08:00There is no perfect. Just map out a good plan and ...<b><i>There is no perfect. Just map out a good plan and stick with it. You'll beat ninety percent of investors.</i></b><br /><br />True. For what it's worth, here's some of what I've learned over the years...<br /><br />1) <b>Saving comes first.</b> You can't invest money if you have not saved it.<br /><br />2) <b>The more you save, the more you'll have.</b> For the same given time period, the artist who saves $10,000/year in <a href="http://www.bogleheads.org/wiki/I_Savings_Bonds" rel="nofollow">I-Bonds</a> will likely retire with more savings than the artist who saves $1000/year in a 401(k). The artist who manages to max out 401(k)/IRA contributions <i>and</i> I-Bond purchases each year will have even more.<br /><br />3) <b>It's OK to save for retirement outside retirement accounts</b>. If your employer does not offer a 401(k) (a problem common in VFX shops), you are not limited to saving the <a href="http://en.wikipedia.org/wiki/Roth_IRA" rel="nofollow">max contribution</a> to an IRA each year. After topping off an IRA, you can invest additional retirement savings in tax-deferred <a href="http://www.bogleheads.org/wiki/I_Savings_Bonds" rel="nofollow">I-Bonds</a> and fully taxable accounts (ex: bank CDs, <a href="http://www.bogleheads.org/wiki/Principles_of_Tax-Efficient_Fund_Placement#Step_5:_Place_tax_efficient_funds_last" rel="nofollow">tax-efficient</a> Vanguard mutual funds).<br /><br />For VFX artists, I have a fourth tip:<br /><br />4) <b>After maxing out all available retirement accounts, consider putting additional retirement savings in I-Bonds first.</b> The biggest risk with I-Bonds is that the money is locked for up to one year (11 months if you purchase the I-Bonds a few business days before the end of the month). After that year passes, the I-Bonds can double as inflation-proof cash reserves in case of emergencies.Celshaderhttps://www.blogger.com/profile/06835531857425033524noreply@blogger.com