Thread: Do you FUND other retirement accounts?

If so, in what order?


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1. TSP (automatic)
2. SEP (smallest, easiest)
3. Roth
4. Taxable

I fund SEP and Roth in January of the tax year, moving cash from reserves, and then fund the reserves. Usually, I willput a little extra into reserves Nov-Dec the previous year in preparation for it.

I did make a mistake early 2003 and my problem with it is that I knew better. (Yet another example of it being one thing to learn from a book, another thing to learn it the hard way.)

I knew it was the time to buy XMSR (XM Satellite Radio shares)--it was going to rise from being a nobody and gain popularity with consumers and investors. I thought, "I will find my tax-advantaged accounts first." and I stuck to that in spite of something within me constantly nagging me to buy XMSR first.

I funded my IRAs with good mutual funds and eventually got around to my Scottrade account...after XMSR quadrupled in three months or so. D'oh! It is not like I did not see it happening, but I stuck to my plan anyway. I missed the boat and had to swim out to catch it.

The lesson is: Tax lawshould not bea primary reason for making investment decisions, only a consideration at best!

So, my list has exceptions...now.