Non-Tax Questions and Comments
Questions or comments about our forum software or this web site in general.
Investment Tool Advise
Posted by:, November 13, 2013 05:17PM
Financial Product Requirement:

- Able to save $15000 post tax every year
- Profits made should be tax free
- I should be able to withdraw money for a home etc
- Should have a broad horizon of investment options
- Should be able to withdraw funds to buy property in any country

Roth IRA isnt an option because it only accepts $5500

Is AIG, Prudential or WFG a safe option with a insurance product. This allows to pool money.

Re: Investment Tool Advise
Posted by: Kaye Thomas, November 21, 2013 01:48PM
There's no need to put all your investments in one place. If you qualify for a Roth IRA, start by maxing out that opportunity, which can absorb $11,000 over a short period of time, as you can contribute now for 2013 and in January for 2014.

When you've reached the limit in your Roth IRA, your best bet is probably to re-examine your requirement that the investment income be tax-free. Insurance products offer tax deferral, not tax-free investing, and typically come with added costs that can outweigh any benefit associated with deferring tax on the income. The simple solution of saving first in a Roth IRA and then in a regular, taxable account gives you maximum flexibility and, with proper management of the taxable account, modest cost.

Kaye Thomas

Re: Investment Tool Advise
Posted by: triad, November 28, 2013 07:48PM
The problem is, you don't want to pay tax.

If you put the money into municipal bonds, the interest can tax free at federal. If the bond is issued in state, it can be tax free at state.

HOWEVER, the bonds can tie your money up for 10, 20, 30 years and selling a bond early can be a hassle. If you bought the bond when it was paying 2% and the market rate is 5% on the day you sell, you will have a huge capital loss.

If you put the money into an annuity, the income is deferred and subject to a huge non-deductible surrender charge for the first x years (typically 5).

Re: Investment Tool Advise
Posted by: cpw, November 29, 2013 04:37PM
Insurance products are generally regarded as poor investments. You might consider a short or medium term muni bond fund.

Re: Investment Tool Advise
Posted by: orgman, December 3, 2013 10:18PM
Its not a lot of money, and a roundabout way, but you could contribute to a Health Savings Account(HSA). You must be covered by a qualified high deductible health plan. If employed and company offered HSA you could make contributions of $3300 for single medical coverage and $6550 for family medical coverage. Through payroll, you could make pre-tax contributions, get tax free earnings and get distributions tax free ---- provided you spent it on qualified medical expenses. It the only triple tax advantage out there! You can spend distributions on other things in retirement and still get only some of the tax advantages. If contributions not through payroll, you still can get a tax deduction for them. See IRS Pub 969

Re: Investment Tool Advise
Posted by: 47Percent, December 5, 2013 10:11PM


Stay away from Insurance products for investment. If you need insurance pay for pure insurance. Once you combine it with investment, you are supporting a long list of people feeding off of that trough.

Not sure what your tax bracket is. But Long Term Capital Gain and qualified dividends are taxed at 0% if you are in the 15% bracket. But since you are able to put away $15K, and mention ROTH limit as $5.5K I am assuming you are single and not in the 15% bracket.

Any way, if you see yourself in the 15% bracket in the near future (MFJ and/or with a huge mortgage deduction), for example) you could liquidate your long term investments with 0% tax on profits.

If you are in the sweet spot of making about $10K to $20K into the 25% bracket, and if you are in the envious position of not needing all your money for current expenses, you can aggressively put away money in $401K, IRA (possibly ROTH), and HSA and bring it down below the magic 15% bracket and squeeze out tax-free profits in the taxable account every year and increase your cost basis.

Re: Investment Tool Advise
Posted by: Tonyridley, December 19, 2013 05:38AM
High yield investing has taken on a totally new dimension since the introduction of the internet and the basic personal computer. In the United States, a high yield account is considered to be anything over 5% monthly. Of curse as the old adage goes, the higher the yield the larger the risk. This is true. You can not expect to earn more than an average percentage rate with less risk. It just doesn't make sense.

Sorry, only registered users may post in this forum.