Re: Tax. deferred accounts vs. long term capital gains?

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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