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Posted in Saving Money
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Djr8095

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Are there retirement accounts similar to 401ks, IRAs, etc for people without earned income, eg SSDI?
I'm currently disabled and receive SSDI. I'm in my 30s and since my condition is still poorly understood, I'm hopeful that I will be able to return to work well before retirement age, but that is far from certain. Since I'm already getting Social Security I know in proportion to cost of living adjustments what my income would be at retirement (same as now, just adjusted for COLA) which means not much above the FPL for the rest of my life unless I find another source of income. For at least the next couple of years, I don't have a lot of out-of-pocket expenses and could be setting aside about half of each SSDI check. Obviously I can, and will, start saving but unless I'm able to put that money into something more than a 0.5% APY, that money will not work for itself. From what I've read you need to have earned income to invest in an IRA and 401ks need to be set up by an employer. Right now I can technically invest in regular stocks, EFTs, mutual funds, or target year portfolios and not have to worry about taxes until half my SSDI plus other income is above a certain amount, but those are more risky and obviously the goal is to eventually have above that amount. Any advice is appreciated.

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Top Contributor
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You may want to speak to an investment advisor. Otherwise you can go online and do research. I think Etrade and some other sites offer some investment advise also. 

Top Contributor
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Look into Muni Bond Funds

There's a high likelihood that if you're looking for more of a higher-yielding savings vehicle that is tax-free, you likely can open an investment account with a low/no opening balance requirement and choose an automated monthly investment into a tax-free municipal bond fund.  I'm not sure what state you live in, but here in Ohio there are a number of investment companies that offer low-fee Ohio municipal bond funds that are exempt from local, state and federal taxes...i.e. the same effect as an IRA.  Just a thought.

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