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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10172
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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If a person has solely unearned income, such as ssdi or

Customer Question

If a person has solely unearned income, such as ssdi or veteran disability compensation benefits, are there any retirement or long term investment options available that they an invest on that are either tax-free, tax deferred or the like?
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.

Hi,

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As it sounds like you may already know, the requirement for the classic tax deductible investment, an IRA, has a requirement that there be EARNED income.

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SO this leaves the tax free investments (where earnings are tax exempt) ... the classic example being tax free municipal bonds ... and,

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Tax deferred investments such as annuities, where, again, there is no tax deduction, but earnings grow without taxation until taken out (tax deferred)

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Hope this helps

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Pleas let me know if you have questions

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Lane

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If this HAS helped, and you don't have additional questions on this, I'd appreciate a positive rating (by clicking the stars or smiley faces on your screen) ... that's the only way I'll be credited for the work here.
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