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Investments > Financial Planning > Re: Tax. deferr...
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Re: Tax. deferred accounts vs. long term capital gains?

by Ron Peterson <ron@[EMAIL PROTECTED] > May 7, 2008 at 07:04 PM

On May 7, 6:02 pm, oprah.cho...@[EMAIL PROTECTED]
 wrote:
> I am reading that tax deffered account like 401K aren't so great
> because you end up paying ordinary income tax rates on the
> withdrawls. Is it better then to invest your money directly in stocks
> and just pay the long term capital gains tax rate, 15%?

You will end up with more with 401K for the same investment if your
tax brackets don't change. The initial tax deferral helps a lot.

You will later be able to convert the 401K to an IRA and then to a
Roth.

> I have already maxed out my 401k and IRA's . Now I want to max out a
> SEP for a side-business. But should I just invest the money in stocks
> directly? Which is better?

It's good to have direct investments in the stock market for
flexibility and those things that aren't available in a 401K.

--
   Ron

 .

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 11 Posts in Topic:
Tax. deferred accounts vs. long term capital gains?
oprah.chopra@[EMAIL PROTE  2008-05-07 18:02:01 
Re: Tax. deferred accounts vs. long term capital gains?
Ron Peterson <ron@[EMA  2008-05-07 19:04:03 
Re: Tax. deferred accounts vs. long term capital gains?
Ernie Klein <ecklein@[  2008-05-08 05:42:54 
Re: Tax. deferred accounts vs. long term capital gains?
Rich Carreiro <rlc-new  2008-05-08 07:12:08 
Re: Tax. deferred accounts vs. long term capital gains?
"Elle" <hond  2008-05-08 09:25:37 
Re: Tax. deferred accounts vs. long term capital gains?
Rich Carreiro <rlc-new  2008-05-08 11:26:08 
Re: Tax. deferred accounts vs. long term capital gains?
"Elle" <hond  2008-05-08 12:05:20 
Re: Tax. deferred accounts vs. long term capital gains?
"Andrew Koenig"  2008-05-08 11:28:49 
Re: Tax. deferred accounts vs. long term capital gains?
BreadWithSpam@[EMAIL PROT  2008-05-08 11:41:35 
Re: Tax. deferred accounts vs. long term capital gains?
"rick++" <ri  2008-05-08 13:52:42 
Re: Tax. deferred accounts vs. long term capital gains?
"rick++" <ri  2008-05-08 13:55:07 

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