Financial bloggers present the debate between the 401(k), or traditional IRA, and the IRA as if they were comparing the two plans. They are very different plans that serve very different purposes. If you’re able, it is best to plan for both. It is particularly true if you have a 401(k). Many of them do. The fees are high […]
The Complete Guide to Roth IRA Conversions – Comprehensive Information for Your Needs
Are you considering converting your retirement fund to a Roth IRA account? The Roth IRA has become incredibly popular. Roth IRA contributions are made from income that’s already been taxed. This means there is no immediate tax benefit. However, the money in your Roth will grow tax-free. Roth IRAs do not require Minimum Distributions at 72, […]
Distinguishing Between Roth IRA and Traditional IRA: A Comprehensive Comparison
The Roth IRA vs traditional IRA – they’re basically the same plan, right? Not exactly. While they do share some similarities, there are enough distinct differences between the two where they can just as easily qualify as completely separate and distinct retirement plans. To clear up the confusion between the two, let’s look at where Roth IRAs […]
Guidelines for Monitoring Your 401(k) Account Balance
According to the U.S. Census Bureau, the 401(k), plan is the biggest asset that many investors have. It accounts for 36.2% their net worth. Census Bureau. Checking your 401(k), or retirement account, regularly can help you keep track of your investments and ensure that they are working in your best interest. What is a 401k plan? […]
Achieving Early Retirement at 50: Seven Simple Steps to Follow
Early retirement is a very popular financial goal. It’s a good thing. Knowing that you have the option to retire early is a liberating feeling, even if you don’t! It may be that this strategy will allow you to tackle even greater challenges in your life. This can happen if you are no longer able to work for […]
Comparing Pre-Tax and Roth (After-Tax) 401(k) Contributions
The decision of whether to contribute pre-tax (before-tax) or Roth (aftertax) 401k is a major one in retirement planning. Pre-tax contributions are made with funds that have not yet been taxed. Taxes will be due when you withdraw the money in retirement. Roth contributions are taxed before they’re placed in the plan. However, the money can […]
Key Facts to Understand About a Simple IRA in 2023: 7 Essential Points
The majority of people haven’t heard about a SIMPLE IRA, and they are curious as to what the rules and limits are and how this differs from a 401 (k). Is it easy to set up a SIMPLE IRA? How does it compare with 401ks and other retirement plans? As we dive deep into the Simple IRA […]
Roth IRA Regulations and Contribution Limits in 2023
If you’re looking to save on taxes and invest for your retirement, opening a Roth IRA is a good idea. There are restrictions on how much money you can put into your Roth IRA. Roth IRA contributions are made after taxes, so your money will grow tax-free. You won’t have to pay income tax on the distributions […]
Comparing Roth IRA and Roth 401(k) – Selecting the Optimal Plan for Your Needs
There are a lot of similarities between the Roth IRA and the Roth 401(k). Both plans allow investors to build up tax-free retirement income, but neither offers any tax benefits upfront in the year of contribution. There is one big difference between a Roth IRA, and a Roth 401(k). The Roth 401(k) is an employer sponsored plan. […]
Is it Possible to Experience Losses in a Roth IRA?
Investors who understand the massive tax benefits of Roth IRA are also fans. A reader recently sent this question to us about it. I’ve been investing for years in a Roth IRA thanks to your blog. After doing some research, I decided to invest in dividend stocks. I am worried that I might make bad choices since […]