Traditional IRA for Wife

[Markus]

Unless you are fortunate enough to make an AGI more than $176,000, a traditional IRA for your wife is a good way to establish her a retirement account and
reduce your taxes. This IRA assumes she isn't covered by a company sponsored retirement account. The deduction gets smaller if both spouses are already
covered by a company retirement plan and the deduction amount depends on the AGI ($109,000 maximum for 2009 on a joint return).

If the wife is not covered by a retirement plan, 2009 IRA maximum contribution is $5000 (under age 50, otherwise $6000) for joint income below $166,000. There's
a phase out on the deduction for income $166,000 - $176,000.

Contributions for 2009 are allowed up to 15 April so there's still time to get a retirement account going and reduce taxes.

[kievstar]

Obama is thinking of putting a wealth tax on a % of money you have invested each year and not on what you earn. Hopefully Democrats lose some seats this fall and this gets put on the side burner.

I would advise people to make sure not all your money is tied up in 401K, IRAs, and roth IRA's where the government can easily track your money. Need to have the ability to quickly wire your money out of the country and change citizenship if needed. Very few companies provide defined pensions anymore.  Very few people save money anymore.  Social security is hurting.  Need to think 20 years down the road what country your going to live in and how your going to protect your retirement savings if the wealth tax is in place.

If your the type of person who will not have a million dollars or a company pension plan you will be safe from the wealth tax.  But you will need a million dollar's or a very good company pension plan to retire. 


So do the IRA and 401K's but make sure your also building money outside of government control. Pay your taxes as well.