I'm on mobile, so please forgive any formatting errors.
Are there any advantages to using a taxable investment vehicle as opposed to an IRA?
A few facts: * I'm 45 year old. * Married, with 2 kids. * approximately $100,000 saved for retirement (most of it in my 401k). * Wife has little savings. Her employer offers a conventional pension plan instead of a 401k.
I participate in an after-tax discounted stock purchase program at work. I want to put this money towards retirement. I do not, however, want to have a significant portion of my savings tied to the same company responsible for my current income. I'm not concerned about the company's longevity, but why tempt Fate, right?
I want to start moving the stock program money out of my company stock and into some broad based index funds. I plan to rebalance annually. I'm using "A Random Walk Down Wallstreet" as a guide for investment strategy. The question is, where to put the money? Note: there are a few tax considerations when selling the stock. I have to hold the stock a certain period of time, otherwise the discount I get on the stock price will be counted as income instead of capital gains.
A few options I'm considering:
*Increase my 401k contribution instead of participating in the stock program. I've already maxed out the company match on the 401k. If I get out of the stock program, I lose the 15% discount off the purchase price. This idea is a non-starter, I think. Am I wrong?
*Sell, deposit the money in my pre-existing Roth IRA. Invest from there. Pretty straight forward.
*Sell, deposit the money in a taxable broker account. I was looking at M1 Finance as a possibility here. Since I'm rebalancing only once a year, would the capital gains tax really be much of an issue?
Submitted June 13, 2018 at 03:17PM by dumbluck74 https://ift.tt/2t6d0ZA
