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Tax Advantaged Accounts

Tax advantaged accounts: 2018 target $30,000 passive income

New investors should read these posts first.

The money in these retirement accounts isn’t easily accessible at this time (I’m 44), but they still count as passive income. Once we both retire full time, we’ll build a Roth IRA ladder to access our traditional IRAs so we don’t have to pay the 10% early withdrawal penalty. All of the investments in these accounts are invested in low cost Vanguard funds. The dividend income here will be reinvested via DRIP (back into the funds). You can see our YTD income in the spreadsheet below.

Currently, most of our retirement accounts are at Vanguard. We pay no transaction fees because they are invested in Vanguard funds. If you don’t use Vanguard funds, I recommend Firstrade. Firstrade is a great discount brokerage that I used for many years before moving to Vanguard. Their fees were recently lowered so now investors pay just $9.95 per trade on no load mutual funds. That’s really good for mutual funds.

You can see all of our passive income over on the Passive Income page. I will update these passive income pages monthly.

Tax advantaged accounts 2016 2017 2018 YTD
Joe’s solo 401k $1,753 $4,023 $0
Joe’s Traditional IRA $12,287 $12,007 $0
Joe’s Roth IRA $2,560 $3,137 $0
Mrs. RB40’s 401k $5,200 $6,346 $0
Mrs. Traditional IRA $1,780 $2,287 $0
Mrs. Roth IRA $1,043 $1,207 $0
Total $24,622 $29,006 $0

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