Search Results for: Roth IRA withdrawal

5 Things to Know About Roth IRA Withdrawals

David Lee Roth did Not Invent the Roth IRA Withdrawal Rules We spend a lot of time talking about contributions to a Roth IRA and how to open a Roth IRA. And rightfully so. The hard part is starting up and sticking to a retirement investing plan. Pulling the money out is easy. But there are some rules you should be aware of. If you are near retirement, I recommend you spend some money on a independent, fee-only financial advisor, who can explain your Roth IRA … [Read more...]

Am I Too Old to Invest with a Roth IRA?

I recently received this question from a reader about investing with a Roth IRA closer to retirement: "I am a public school teacher, 46 years old. I have a public employee pension that I contribute to and can begin collecting on once I retire. I will also obviously have S.S. money. I have no credit card debt and have paid off all student loans. I have some extra money to play with. I was wondering if it makes sense at 46 to open a Roth IRA now if I plan to retire in 9 … [Read more...]

Which Retirement Plan Should You Choose for Your Business? [Solo 401k vs SEP IRA vs SIMPLE IRA]

One of the most common questions I see from new entrepreneurs is about their retirement plan options. Specifically, I see a lot of people talking about the Solo 401k vs SEP IRA vs SIMPLE IRA.  In short, I find that the SEP IRA is the perfect tool for the part-time entrepreneur who still has a 401k through work. The Solo 401(k), on the other hand, is great for anyone who is fully self-employed in a one-person business. Finally, … [Read more...]

Can I Contribute to Both a Roth and Traditional IRA and is the Limit Shared?

Over-achieving savers often run into questions about their ability to contribute to multiple tax-advantaged retirement accounts. Here's a recent question from a reader: I have a traditional IRA and a Roth IRA. I make under $50K a year. According to your article, I need to split the $6,000 max contribution amount between those accounts (i.e. I cannot contribute $6,000 to each account). Is that correct? My answer: Yes, $6,000 is as … [Read more...]

Excess Roth IRA Contributions: Does My Brokerage Keep Track of Income Limits?

According to the IRS's Roth IRA income limitations, if you plan to file married filing jointly and make $183,000 or over in Modified Adjusted Gross Income (MAGI) in 2012, then you cannot make contributions to a Roth IRA. Many dual income households are now staring down this Roth IRA limit. Such is the case of this PT Money reader who asks: I am considering opening a Roth IRA account with an online broker, but I have a few tax questions first. If I make some stock … [Read more...]

What Makes a Roth IRA So Great [In Plain English How it Works]

Do you know about the Roth IRA? Saving for your retirement is important. You need to have money saved by the time you retire so that you can afford your expenses when you are physically and mentally unable to work. When people talk retirement, the Roth IRA often comes up. Rightfully so. It's an excellent tool to help you save more money for your retirement. I've used it in the past, in addition to my company's 401K, to help me save for my own retirement … [Read more...]

10 Reasons to Get Off Your Butt and Start a Roth IRA

I really love the Roth IRA. There are so many reasons to start one of these bad boys and get going with your retirement savings. Today I thought I'd do a little convincing and list some of the reasons to start a Roth IRA. So check these out and then get started. Seriously. No excuses. 1. You'll Be More Prepared for Retirement The Roth IRA was created to provide incentive for you to save for your own retirement. Use it. Retirement will be a … [Read more...]

Understand Roth IRAs and Use Them for Your Advantage

The late Senator William V. Roth, Jr. The traditional individual retirement account (IRA) has long been a savvy way to do some tax-deferred investing for retirement. Though the Roth IRA was established by the Taxpayer Relief Act of 1997 and named for Delaware Senator William Roth (who was a key player in the Act), this retirement vehicle is still not quite as well-known or understood as the traditional counterpart. The Roth IRA … [Read more...]

Roth IRA vs 401K: Which is Right for You?

Roth IRA vs 401K: a Classic Matchup Which retirement savings account is better for you, the Roth IRA or 401K? The short answer is that it doesn't really matter because they are both great tax-advantaged tools for helping you save money for retirement. And it really depends on your situation and your preferences when trying to decide which is truly best for you. Below I'll try and present the facts about the two types of retirement accounts and let you do the … [Read more...]

How to Rollover a 401k to an IRA

Leaving your corporate gig can be a good or bad thing depending on your particular situation. One thing though that's usually a positive when this happens is that you get to move your 401K funds into an IRA. The 401K rollover to IRA, sometimes called a 401k IRA rollover or 401K to Rollover IRA is a common move people make when they leave their job. If you've been fired or you quit your job, you have the option to roll your 401K funds over into what's known as a … [Read more...]

How to Invest Money: What You Need to Know to Get Started

Making investment decisions can be a scary and overwhelming process. We are constantly bombarded with conflicting information about the market. One moment everyone’s excited, and a few hours later they are all disappointed. We hear that investing is inherently risky, but also that it's the clearest path to wealth. And then there's the alphabet soup of investing lingo, from IRAs to ETFs. So just how are you supposed to feel … [Read more...]

How to Automate Your Savings (Step by Step Banking Guide)

We all want to save more money, but for most of us, that’s way easier said than done. Saving more money means you need not only the intent to save but also the discipline to follow through with it. Most of us have the good intention to save part down pat. It’s the action part that usually hangs us all up. When you automate and separate your savings, you’re setting up a system to regularly save money with automatic bank transfers to … [Read more...]

Titan Invest Review 2022 | Invest in a Hedge Fund?

There is a new player in the fintech space that is trying to make hedge funds strategies accessible to the average investor, Titan Invest. They are replicating the hedge fund investment strategy with low fees, no accreditation requirements, and you can get started with no minimum investment. You've no doubt heard about hedge funds, but you might feel they are only for the wealthy investor. Hedge funds are known for their high fees … [Read more...]

The Complete Guide to 529 College Savings Plans

Have you been thinking about saving for your child's future college expenses? Are you curious if you should get started with a 529 college savings plan? It took me three years from the time I started thinking about setting up a 529 college savings plan to actually open one up. It's one of those big financial check-offs that just seems to elude us...till it's too late. If you're like me, you're probably wrestling with this big … [Read more...]

Betterment vs. Wealthfront: Which is the Better Robo-Advisor in 2022?

Betterment vs Wealthfront: these are the two largest and best-known independent providers in the robo-advisor space. They’re also two of the earliest entries to the field. Because of that, they've evolved to the point where they have far more services than what is offered by the typical robo-advisor. Betterment and Wealthfront are automated online investment platforms. Both charge a low annual advisory fee and manage your … [Read more...]

M1 Finance Review 2022 | What’s the Catch with Free?

  If you've been fascinated with the idea of robo-advisors, but still prefer to go the do-it-yourself route, you need to check out M1 Finance. It’s a robo-advisor for sure, but one with a unique twist: you choose your own investments. That's the self-directed part. But once you choose your investments, you get all the benefits of a robo-advisor. M1 Finance then manages your portfolio for you, including periodic rebalancing and … [Read more...]

Start Investing According to Your Values with Stash Invest (Our Review)

  Many people have trouble getting started investing. There are often high balance requirements that make it difficult to even open an account, let alone actually start investing. If you’ve been having difficulty getting out of the investment starting gate, you can get plenty of help through an app known as Stash Invest. Stash will enable you to invest in fully constructed investment portfolios that are consistent with your … [Read more...]

Betterment vs. Vanguard: Both are Great, but Which is Best?

Betterment and Vanguard have each positioned themselves as leaders in the passive investing movement. I’ve used both of these companies for years now and can wholeheartedly recommend both. I currently have more invested with Vanguard than Betterment. But which one is a better fit for your money? Betterment is a robo-advisor offering an automated service that builds customized portfolios to match your risk tolerance. This company … [Read more...]