IRA ASAP!!!

[space-time]

I found out that wife needs to open an IRA and put in $5500 to lower the tax bill . I cannot do that since I already have a 401(k). She will also have a 401(k) soon so next year she will not be able to make IRA contributions.

Questions: do we chose Schwab, or go with Vanguard which also handles the 401(k) accounts? Most likely we won't be making frequent trades, we will probably buy a mutual fund such as Vanguard and leave it there for 10-15-20 years.

Thanks

[clay]

vanguard if you like their options.

[Ombligo]

Vanguard Mutual Fund.

[mattkime]

Go with Vanguard. Pick a target date fund if you don't want to think about where your money is.

>I cannot do that since I already have a 401(k).

Meaning you don't have the funds? You can certainly put money into both.

[Acer]

FYI, in the future you can still make individual IRA contributions even if you have an employer's 401(k).

I opened up a Vanguard for an individual IRA in addition to my employer's 401k provider (not Vanguard), but really only out of curiosity, a chance to compare and a little bit of not-all-eggs-in-one-basket superstition.

[TLB]

I have a Vanguard Target IRA fund and like its performance.

[pdq]

Totally unscientific and unsupported, but I think Vanguard generally has pretty good funds. You can probably (maybe) buy them at Schwab too, but if you already have the 401(k) at Vanguard, that's what I'd do.

[space-time]

Acer wrote:
FYI, in the future you can still make individual IRA contributions even if you have an employer's 401(k).
...

I know, but with both of us working now, we hit the limit. Yes, I can make IRA contributions, but it will not be tax deductible. So I might as well put it in a normal stock account, at least I could withdraw whenever I wanted. Am I missing something?

[pdq]

space-time wrote:
[quote=Acer]
FYI, in the future you can still make individual IRA contributions even if you have an employer's 401(k).
...

I know, but with both of us working now, we hit the limit. Yes, I can make IRA contributions, but it will not be tax deductible. So I might as well put it in a normal stock account, at least I could withdraw whenever I wanted. Am I missing something?
The only thing that you might be missing there (and I may be wrong - not an accountant) is that that money in an IRA would earn dividends and such tax free.

[pRICE cUBE]

.