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Another snoozy Saturday

December 4th, 2005 at 07:29 am

Not much today, thankfully. Trips to a couple of grocery stores to pick up milk, 8-grain hot cereal, brown rice, and bubble bath. I could have gotten away with going to one grocery but the holiday food samples were fantastic at the other, so I had a frugal lunch of samples.

Found the equation that tells me how to best invest in my DRPs - put it in my spreadsheet. When I want to deploy my lump sum into my DRPs I can figure it out.

But I should explore starting an IRA, to save money on my taxes. I've either done the 403B or been too poor for an IRA other years, not to mention that I thought that if you have one you can't do the other. I have too much dividend earnings, I think, to file 1040EZ this year while next year when dad's estate lands in my lap my taxes will be even higher. No matter where I invest 250K the interest, dividends, and capital gains is going to be high. (4% of 250K = 10K, and 33% of that would be 3.3K). Balancing that out every year with a 5K IRA contribution is only prudent. Roth or classic?

Posted in IRA, Stocks & DRPs, Buying calories, Taxes | 2 Comments »

2 Responses to “Another snoozy Saturday”

  1. Anonymous Says:
    December 5th, 2005 at 01:23 am 1133745830
    1133745830

    if you are single and your modified adjusted gross income is $40,000 a year or less, or if you are married and filing jointly and your adjusted gross income is $60,000 or less you can deduct your contributions to a traditional IRA. If you are in that category I would invest in the traditional IRA if you aren't I think the ROTH IRA is the better option. Just my 2 cents Smile

  2. Anonymous Says:
    December 5th, 2005 at 04:07 pm 1133798841
    1133798841

    Wow, I must have missed something--I had no idea you'd end up with 250K to invest. Your head must be spinning! Congratulations!

    I'm afraid I wouldn't have been able to offer any advice on the IRA front, but it looks like you figured it out anyway. Smile

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