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Old 02-08-2008, 07:56 PM
 
782 posts, read 3,487,906 times
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I see there is a max of 5k per individual toward contributions for a roth ira.My question is ,can you have more than one ira account? Me and my spouse will have a joint account.The max is 5k but want to invest more when the time is right.I do not want to put money into a high risk investments.If i can get 6% return on my investment, i think i will be satisfied.The calculation chart show a potential 740k in 25 years,with $9600 annual investments.I hope the max contributions will go up over the years.My second question ,is 6% return achievable in a roth ira?
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Old 02-08-2008, 08:20 PM
 
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My question is answer about multiple IRA's.For those of you that have an IRA,is 6% achievable?
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Old 02-08-2008, 09:47 PM
 
Location: Los Angeles Area
3,306 posts, read 3,451,790 times
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As far as I know you cannot create a joint Roth IRA. You and your spouse can create separate IRAs though, you can contribute $5,000 to each of them. Your spouse has to have income though, there is a "Spousal IRA" but I don't know the details. Also, as far as I understand you can create more than one Roth account, but your total contribution to all accounts can't be more than $5,000.

Also, so long as inflation is low you're not going to get 6% without risk. If you don't know a lot about the markets your best bet may be a lifecycle mutual fund. These funds have a target retirement date and start off with more risky investments and then slowly invest your money into more safe investments. Over the long run a fund like this should get you around 8-9% a year, of course some years you'll lose money others you'll get more than 8-9%.
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Old 02-09-2008, 10:02 AM
 
Location: DC Area, for now
3,517 posts, read 12,047,444 times
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There is no such thing as a joint IRA, Roth or traditional. Each spouse must have their own IRA owned separately, altho the other can be the beneficiary. This is to protect a spouse from a predatory spouse and/or the dissolution of the marriage. The spouse does not have to have earned income. There are limits on how much you can contribute each year and congress can change those amounts if they want. There are also limits on income determining whether you can contribute. You should get the info directly from the IRS web site or just about any institution will tell you what the current limits are.

Any IRA can consist of any investment you like including stocks that you manage yourself out of a brokerage account. If you invest, look at the fees as they can drastically reduce the actual gain over the years. High return usually means high risk of negative loss - you can win, but you can also lose. It is gambling.

The only safe and guaranteed returns are things like T-bills or CDs in the IRA account but right now, they are not going to return 6% as the rates are not that high now. You can have an unlimited number of IRA accounts of different types with different institutions so long as the total yearly contributions per person to any or all of them do not exceed the IRS limits set by congress. You can also contribute during the whole year plus the next year up to 4/15 so long as the total amount does not exceed the limits for that year. Different accounts will have different contribution requirements. Most will insist on a dollar amount, but that amount can vary widely.

You have to do all the investment homework with an IRA or you stand to lose a lot.
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Old 04-03-2010, 09:12 PM
 
Location: Troy, Il
764 posts, read 1,415,981 times
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Like Tesaje said, a roth ira can consist of any investment, but i would not worry so much about guaranteed invest, because the interest is much lower. You should check to see what your ira is invested in and see the returns. 6% is low in most mutual funds, you can shop around and get much annual returns, even in less aggressive funds. You just have to do your homework. I just got a growth and income fund that has done 9.8% a year over the last ten years, and that is only mediumly aggressive.
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Old 04-03-2010, 11:24 PM
 
Location: Fairfax, Leesburg, Ashburn, Sterling, Reston, Herndon, VA
25 posts, read 114,793 times
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I know little about a ROTH but I do know Self directed IRA is a great option to insure growth and a Tax shelter. My wife and I purchased a house in cash with our IRA's. Though the Trust holds the account individually proportionately based on our contributions to the purchase price. The great thing about it is the immense tax shelter that it provides. All of the expenses are paid through the trust and are tax deductible, including the annual Trust fee of $350, monthly electric, taxes, repairs, etc.... In addition you can transfer up to $15,000 a year in Virginia into your IRA account from your 401K. We did last year and this year and are preparing to do some modifications. It will increase the value of the home but we also get the tax break for the expense.

If it is a rental property, for instance at the beach or in the mountains, in the current market you could buy it and visit it 4 weeks a year to check on the home and get the tax break for the trip and the rental depreciation year by year so when it comes time to retire and take the pay out considering roll overs and like property exchanges it cold conceivably be a wash, in other words, tax free.
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Old 04-04-2010, 12:22 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,524 posts, read 39,903,732 times
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Quote:
Originally Posted by Maursce View Post
I know little about a ROTH but I do know Self directed IRA is a great option to insure growth and a Tax shelter. My wife and I purchased a house in cash with our IRA's. Though the Trust holds the account individually proportionately based on our contributions to the purchase price. The great thing about it is the immense tax shelter that it provides. All of the expenses are paid through the trust and are tax deductible, ....
While holding real estate in IRA's is done successfully by many, BE CAREFUL there are plenty of rules and landmines to avoid (Or your ENTIRE IRA will become 100% as a taxable distribution.) hint:, like if your trust acct needs a capital infusion and you decide to use non-ira $$ to ADD to tax defered $$.

IRA and tax shelter do not belong in the same sentence so RUN FAST from any RE or Insurance salesperson that mentions it.

RE in IRA must be handled through a separate trust entity that may not have YOUR best interest in mind. (hint #2, these can be VERY EXPENSIVE (like 7-8% load fees + annual fees + they have 'inside' sales folks doing interesting deals)

Pensco Trust is one of the biggest, but be sure you also research Pensco Scam, as not all are so enamored with their results.

It is a good option, but not for all, and it is possible to do without getting into the clutches of the greedy ones. (i.e. do a 'private' trust holding, not a corp $$$ hungry grab). I ran onto several IRA investment options in RE this yr that were legit and gave real returns (on investment & AND your capital ).

Many astute RE investors will shoot holes through the RE IRA holdings, specifically because you are losing tax shelters by doing this in your IRA. I better plan is to hold the commercial or income RE as a taxable asset (flow-through)... LLC or SP or P, then when you get feeble and tired of fixing roofs and toilets & you've had your fill of doing 1031's, (And can get at your IRA distributions, i.e. post age 59.5) THEN you sell the RE and finance it (carry back paper) through your IRA, thus it would be your equivalent to income producing holdings.
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Old 04-04-2010, 01:01 AM
 
Location: Fairfax, Leesburg, Ashburn, Sterling, Reston, Herndon, VA
25 posts, read 114,793 times
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IRA and Tax Shelter is the basis of the IRA concept. Yes there are many matters that have to be addressed but this is not intended to be an exhaustive forum just a suggestion that can be researched and investigated. I interviewed over 20 Trusts and settled on one in Texas with nearly 100 billion in assets that is a old American owned company. Their rate structure is simple, we pay an annual flat rate for the trust mangement, $350. We pay all bills through the trust. If we rent the property all rent has to be forwarded to the trust without cashing the check. The bills are faxed to the trust with a cover signed endorsed and dated with approval for payment directly to the provider or merchant. WE can not buy something and be reimbursed. Also, did I mention that they do not charge consulting fees for discussions about the property. Anyway just FYI Self Directed IRAs are threatening to the IRA funds where a lot of money goes to the Trust Manager for trading fees etceteras.

Just do your home work and see what is good for you.
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