Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
More
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Borrow No More Than 30% of Your Available Credit

Borrow No More Than 30% of Your Available Credit - You should borrow no more than 30% of your available credit each month if you wish to keep your credit...

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

Investing for Retirement

Posted On: 2007-01-09
Length:

Listen to this podcast

Hello and welcome to Money Girl's quick and dirty tips for a richer life.

Thanks so much to those of you who have written in with questions. I'm looking forward to answering as many of them as I can in future episodes. Today's topic is investing for retirement, a topic some of you have asked about. One big financial goal shared by almost everyone is accumulating enough money to retire comfortably. But figuring out a game plan can seem overwhelming. There are 401Ks, traditional IRAs, Roth IRAs as well as other types of retirement savings plans. The biggest risk is inaction. With all the investment choices, it's all too easy to succumb to analysis paralysis and do nothing. Now retirement investing is a really big topic. In this episode I'm going to talk about just one aspect of it, how to be a little strategic when investing in an employer sponsored retirement plan. If your employer offers a retirement plan, such as a 401K, it's usually a good place to invest, especially if your employer matches your contributions and you have a broad array of investment choices within the 401K. An employer match is free money, so if you do nothing else, invest enough in your 401K to take full advantage of the employer match.

And now here's a little strategy. If you're younger, and think you'll be in the same, or a higher tax bracket than you are now, you'll typically come out ahead if you contribute to your 401K up to the point of getting the full match. And then, contribute to a Roth IRA if you're eligible. With a Roth IRA you contribute after-tax money and your earnings get to grow tax free, which is pretty amazing. With a 401K, on the other hand, you contribute before-tax money and your earnings grow tax deferred. Which means you'll have to pay taxes on them when you tap the money during retirement. Not everyone is eligible for a Roth IRA. For 2007, if you're single, eligibility phases out for incomes between $99,000 and $114,000. If you're married and file jointly, eligibility phases out between $156,000 and $166,000. At the very least, contribute enough to your 401K to get the full employer match. Then contribute to a Roth IRA if it makes sense for you and you're eligible. For 2006 and 2007, the contribution limit for a Roth is $4,000. Or $5,000 if you're aged 50 and over. And, if you can afford to invest more to retirement after contributing to a Roth, consider contributing to your 401K. The limit for 401K contributions for 2007 is $15,500. And if you're over 50, you can contribute an additional $5,000. Now, if switching from your 401K to a Roth and then back to your 401K sounds way too complicated, remember that the most important thing is to contribute enough to your 401K to get that full employer match. I hope I have driven that one home. Beyond that, you can simply keep on contributing to your 401K as your circumstances allow.

Lastly, I wanted to mention that there's still time to contribute...

Discuss It!

custom paper writing service said:

Many people are retiring every year along with it the investment plans also getting increased now a day. Earnings when get tax free then it will be a good news to earner. This was a nice article presented here helped many people like me.

Happy New Year 2017 Messages said:

happy new year 2017 sms messages wishes,greetings.2017 Whatsapp Status for Happy new year Wishes,Greetings cards GIF Images ...

omega replica said:

This type of planning for choosing a good application design company will believe every people because these are very good as well as nice and precious.

how to get more followers on instagram said:

Now the most of the internet users can use the social network for any purpose the one things that to get and want to more and more followers of the instagram you can get more access of the free followers of the instagram account.

Google Duo For Windows 8.1 said:

new video calling App named Google Duo. ... Google Allo is an instant messaging app where as Duo is the hd vidoe calling app.

iPhone 8 Release Date said:

Now the latest iPhone 8 will have a screen size of 6.o inch, and the screen will be of OLED screen.

Write My Essays said:

The information you have provided is very helpful at all thank you very much for sharing useful information with us.

Research Paper Writing Service said:

I liked the information you have.View this site as the data available will give you a helping hand when you agree to order essays online and to achieve the highest results when it comes to custom essay writing service.

binary option robot scam said:

Everyone knows what is Binary Option Robot? It is an automated trading tool of binary options.

Samsung Galaxy S9 Released Date said:

Samsung going to launch S9 series phone, checkout .<a href="http://www.galaxy-s9.com/2017/06/05/samsung-galaxy-s9-released-date">Samsung Galaxy S9 release date </a> Keep sharing

Omega replica watches said:

GREAT

Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Minority Interest

Minority Interest - Minority Interest is shareholders whose combined shares represent less than half of the total outstanding shares issued by a corporation have the minority interest in that corporation. In many cases, the collective holdings of the minority shareholders are considerably less than half of the total shares. In...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com