Archive for October, 2009

Important Years For Retirement Planning

October 29th, 2009

Time.com has published a series of 30 articles about retirement planning, I’m including an excerpt from an article that has an emphasis on those who are in their 30s…

“For one thing, you’re getting older. You’re not old by a long shot but the door is starting to close on the certainty of long-term investment gains. “The most powerful force in the universe is compound interest,” Albert Einstein famously declared. But the magic only happens through consistent saving over many, many years. Delay is costly. Consider: Had you started saving $5,000 a year in a Roth IRA at age 20 you would today be on track to accumulate $1.9 million by age 65 (assuming 8% annual returns). But now, at age 30, you need to save more than twice that amount each year ($11,200) to get the same result and if you are 40 you need to sock away $26,400 a year. The earlier you begin the less you need to save. In the example above, lifetime contributions that began at the age of 20 totaled just $225,000; at the age of 30, $392,000; and at 40, a staggering $660,000.”

Read the rest of this article and the others here.

2010 Will Bring Big Changes to Roth IRA Rules

October 27th, 2009

The New Jersey’s Star-Ledger has publish an article regarding the future changes to Roth IRA rules, here’s a quote from it:

“Starting in 2010, the rules governing the conversion of a traditional IRA into a Roth IRA will allow anyone — regardless of income — to switch their existing retirement savings account.

The change in 2010 “has the potential to be a fairly big deal,” said Rande Spiegelman, vice president of financial planning at the Charles Schwab Center for Financial Research.

Depending on your financial circumstances, converting your traditional IRA to a Roth IRA might be a smart move, but consumers should do their homework first.”

You can read the rest of this story here.

No Tax Benefit For Stock Loss

October 27th, 2009

The news tribune has an interesting article in Q&A format, here’s an excerpt from it:

Q: I am very new to the game of investing. What low-priced stocks do you recommend? I’ve been lucky with a few penny stocks and want to add a little at a time. – D.M., Ontario

A: First off, stop thinking of investing as a game. Sure, it can be exciting and a lot of fun, but it’s also serious business. It’s your hard-earned money, and your retirement, that you’re “playing” with. ”

Click here to continue reading the original article.

Traditional vs. Roth IRA – Benefits and Drawbacks

October 4th, 2009

Two of the most popular individual retirement account options are the traditional IRA and the Roth IRA.  The basis of both of these plans is to provide a secure, comfortable retirement for those eligible to open and contribute to an account.  Specific details about rules and restrictions are what set these two drastically apart from one another.  Depending on your income, tax filing status and exact plans for the future, you may find one is significantly more beneficial for you over the other.

» Read more: Traditional vs. Roth IRA – Benefits and Drawbacks