30k in a sep plan by Oct 15?

fireitup123 · #1 10-10-2005, 12:39 PM

Hi,
I"m a professional gambler for 2004. I am working on my last tax extension for 2004 this week, which is due Oct 15. I was just told by my tax person that if I can get a SEP plan set up by the time I file my 2004 tax return, I might get a nice deduction for 2004 (plus be saving for retirement). I was going to max it (30k or so for me). My bank is closed today.

I don't know much about this issue yet, and decided to start my research here! Any ideas or thougts on this appreciated (Such as suggestions on how to set it up or where to set it up, how it works, etc).

zokbarjazz · #2 10-10-2005, 01:47 PM

Go to Vanguard's website, open an account. You can set up a SEP-IRA online and transfer the money electronically. You can choose from any of their mutual funds, which are very good IMO...or you can use mutual funds from other companies, you just have to open a brokerage account through Vanguard (the site will take you through the steps). If you already know where you want to invest your money, the entire process should take you less than an hour.

Dan Mezick · #3 10-10-2005, 04:30 PM

It's a direct deduction from income equal in value to the amount times your effective tax rate. You cannot spend the 30K but you get to trade it any way you want. It's a great deal that needs to be maxed each year if you can afford it.

With the structure few can afford to NOT do this.

fireitup123 · #4 10-10-2005, 09:26 PM

I met with a company called Edward Jones today.

They charge a flat rate of 5.75% to invest my money for me in mutual funds. I might invest the max for 2004 of 41k (found that out at meeting that I could invest up to that amount). Is this 5.75% fee a ripoff?

I pretty well know what where to invest...anybody know what I can expect to pay through vanguard to get this in place? I tried to call earlier but they said their small business section was closed until tomorrow morning. I plan to visit their site later this evening or tomorrow morning as well as call.

Thanks for your help

Sniper · #5 10-11-2005, 12:02 AM

[ QUOTE ]
They charge a flat rate of 5.75% to invest my money for me in mutual funds... I pretty well know what where to invest...

[/ QUOTE ]

Then why would you pay someone 5.75% to invest in mutual funds for you, when you can do it yourself?

Oh I get it now... you are a rock at the poker tables and only play about 15% of your hands, so you pay your fishy buddy 2 grand to sit with you and bet all your hands that you don't like to play, cause maybe he'll make some money for you with them. [img]/images/graemlins/wink.gif[/img]

fireitup123 · #6 10-11-2005, 12:45 PM

[ QUOTE ]
[ QUOTE ]
They charge a flat rate of 5.75% to invest my money for me in mutual funds... I pretty well know what where to invest...

[/ QUOTE ]

"Then why would you pay someone 5.75% to invest in mutual funds for you, when you can do it yourself"

When you put it like that....Ha. Thanks guys I did call Vanguard and they were willing to help me at no cost. It took under an hour as you suggested. The Vanguard suggestion was awesome.