Posts Tagged ‘roth ira’
Retirement: Do You Plan on Working After Age 65?
Posted March 23, 2009 by Bernz
A generation ago, it was taken for granted that people would work hard at their jobs until their 65th birthday, then retire to a life of leisure. Most companies provided their long-term employees with retirement plans that made their post-work years comfortable. 
Today, however, workers are navigating a whole new employment landscape. Jobs are more transient than they once were. Workers are changing jobs and employers more often. Retirement packages are not a given any more and employees are lucky to find one that provides fully for the retired life. (more…)
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Tags: 401, 401k, early retirement, IRA, retire early, retirement, Retirement Planning, roth ira, working over 65
Posted in 401k, Career, Estate Planning, Financial Goals, IRA, Retirement Planning, Roth IRA, Saving Money, Simple IRA, Traditional IRA | 1 Comment »
Making the Right 401(k) Choices
Posted February 3, 2009 by Bernz
Knowing which investment choices are right for you in your 401(k) plan has never been easy, but in the current economic environment, it can be downright torturous. Most funds that are available to choose from in your plan are declining in value and producing negative returns. This is also the case of the stock market as a whole. That means that your job is to select investment funds not to make the biggest return but to lose the least amount of money. Preservation of capital is tantamount during this extended recession.
Many investors make the unfortunate choice of trying to beat the stock market. However, it has been proven time and time again that, over time, managed funds rarely outperform the stock market as a whole, regardless of how talented and well-compensated the fund manager is. If seasoned experts cannot beat the market, it is highly unlikely that you will be able to. The best many investors can do is to match the performance of the stock market. How can you choose investments in your 401(k) that will follow the stock market and preserve your retirement funds? Index funds.
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Tags: 401k, index funds, investing, investments, IRA, retirement plan, Retirement Planning, roth ira
Posted in 401k, Financial Education, Financial Goals, IRA, Investing Strategies, Tax Reduction | No Comments »
Regular vs. Roth
Posted October 27, 2008 by Bernz
The vehicle we now call the Roth IRA was born on January 1, 1998 as a result of the Taxpayer Relief Act of 1997. The Roth IRA provides no deduction for contributions, but instead provides a benefit that isn’t available for traditional retirement accounts: if you meet certain requirements, all earnings are tax free when you or your beneficiary withdraw them. Other benefits include avoiding the early distribution penalty on certain withdrawals, and eliminating the need to take minimum distributions after age 70½. Remember that in either cashing cashing an IRA is very expensive and should only be done for very extreme circumstances.
Plus and minus
The nice part is that you get a tax free retirement vehicle with the downside of not being able to deduct the money you give to your Roth IRA. Which is more important depends on the individual like your income level and how soon you will need the money. Usually a Roth IRA is better in most people’s cases especially when the income level in is beneath 160,000. Also you will not have to take money from it until age 70 ½.
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Tags: IRA, roth ira, traditional ira
Posted in IRA | 2 Comments »
3 Benefits of a Roth IRA
Posted October 14, 2008 by Bernz
What’s a Roth IRA? It’s an individual retirement arrangement (aka retirement savings account) you fund with after-tax dollars. The money you contribute goes into your account and continues to grow without you having to pay any tax related costs. In other words, when the time comes for you to make a withdrawal, every cent you take out goes back into your wallet.
Part of what makes Roth IRAs so appealing is its tax-friendly quality. But there are 3 major benefits of a Roth IRA:
• You can contribute money regardless of your age and for as long as you like
• You can leave the money in the account without having to make minimum monthly withdrawals (something you must do with traditional IRAS)
• You can withdraw money whenever you want for any reason (but if you’re younger than 59½ you’ll face early withdrawal penalties unless you can prove you have a qualifying reason such as college tuition, medical expenses, or a first-time home purchase).
Thinking of starting a Roth IRA? If so you’ll need to make sure you meet these taxable income guidelines:
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Tags: retirement savings account, roth ira
Posted in Roth IRA | 1 Comment »
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