Re: How Much Investment Needed to Earn $1000 a Month?
I just skimmed through, so forgive me if this has already been said.
If you are in your employer plan, you can contribute to a traditional IRA BUT you can't take a deduction for it, so it makes no sense to do so. However, you CAN contribute to a ROTH, so that's the way to go. The only advantage to a traditional IRA is the tax deduction. Lose that and the account offers no benefit.
We just went through this with my wife. We have funded a spousal IRA for her each year, including this year. Well, she went back to work and now has a 403b plan. So I had to recharacterize her 2006 IRA contribution into a ROTH account since leaving it in the IRA made no sense.
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Steve
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