Discussion in 'Stock Market' started by Valerie, Mar 30, 2009.
It's not too late to make your 2008 contribution! The market is offering an opportunity of a lifetime, so if you can afford to set aside as little as $500 and as much as $5000 by April 15th, the growth will not be taxed when you withdraw it in your retirement years!
I highly recommend ROTH IRAs for those who want to secure their own future.
Some good info:
Roth Accounts Are Bigger
How to Start a Roth IRA
Info on recent IRA rule changes:
Roth Is a Good Way to Hedge on Your Future Taxes - WSJ.com
Traditional IRA income and Social Security income are TAXED income!
Take control of your future and begin saving in a ROTH IRA - NOW!
The opportunity of a lifetime is here.
Val, people also need to know how to manage their IRA's too. Most people just think they can stick their cash in every year and earn a ton of money for retirement. IRA's took a beating just like 401k's. I recommend about 20% of your IRA in precious metals, if it's an available option to you. I also recommend energy positions as well.
It's time people started educating themselves on finance and managing their OWN portfolios.
Yes, most people are intimidated by the process and it's a shame because the rich just keep getting richer and fear keeps the little guy from taking the opportunity.
People should know they can hold all sorts of securities within their retirement accounts. You can hold bonds, CDs, annuities, stocks, mutual funds, ETFs, commodities, cash, etc...and a ROTH provides an opportunity for TAX FREE growth in all of these vehicles!
I switched my contributions to my 401k last year (what I was putting into my 401k) to a Roth IRA. My employer did not match any contributions for the 401k and my current tax bracket is low enough that I actually should end up better off contributing to the Roth.
If my employer matched 401k contributions, I would not consider it, because the matching contributions (if they are significant) are actually earnings on the 401k, but since my employer doesn't match, I may as well use the benefits of the Roth and not risk tieing up those contributions if I should need them before retirement.
One benefit of the Roth is that if I need to use the principal for any reason ie down payment on a house, paying off credit cards etc, I can do so without the tax penalties associated with a 401k.
But, think about your situation before you make the leap from a 401k to a Roth. If your employer matches even 50 cents on the dollar up to a certain amount, remember that that is 50 cents on the dollar of earnings you will have to make up on the Roth and that is not easy to do.
I guess my mattress ain't such a great idea, huh ?
Actually, considering that a dollar is now worth around seventy five cents, that might not be a bad plan at all! When it comes back to even -- however long that takes -- you will have earned thirty three percent on your money! Just don't tell your neighbors about the mattress!
Bloomberg.com: Benchmark Currency Rates
How about pennies? They're harder to sleep on but harder to steal too .I'm thinking maybe they're holding their value a bit better than paper.
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