What Are the Potential Benefits? What Are the Drawbacks? If you own a traditional IRA, perhaps you have thought about converting it to a Roth IRA. Going Roth makes sense for some traditional IRA owners, but not all. Why go Roth? There is an assumption behind every Roth IRA conversion – a belief that income…
Minor inflation means small, but notable, changes for the new year. Each October, the Internal Revenue Service announces changes to annual contribution limits for IRAs and workplace retirement plans. Are any of these limits rising for 2017? Will IRA contribution limits go up? Unfortunately, no. Annual contributions for Roth and traditional IRAs remain capped at…
Here is a way for a solopreneur to save much more for retirement. Self-employed? Seeking to ramp up your retirement savings? You should look at the potential of the Roth Solo 401(k). If you are a high-earning solopreneur, this savings vehicle may be a great choice because it allows you to make both employee and…
If you do, there are some “minor concerns” to keep in mind. Should you make a minor child the primary beneficiary of your IRA? Are there any caveats to that choice? IRA owners frequently name young children as contingent beneficiaries of their accounts, but designating someone younger than 18 as the primary beneficiary of IRA…
You might be surprised at its potential. An IRA is a retirement savings account, right? Indeed it is. IRA stands for Individual Retirement Arrangement. Even with that definition, however, there is no prohibition on using an IRA to save for other purposes, such as funding a college education. Why would anyone choose an IRA as…
Roth IRAs Can Be More Flexible Than Other Retirement Accounts A Roth IRA comes with some unique benefits not available to other types of retirement accounts. We recommend prioritizing retirement savings and especially a Roth IRA, even when you think you cannot afford it. Due to a little known rule, in many circumstances you can…
When stocks struggle or tread water, going Roth gains merit. Converting a traditional IRA to a Roth IRA is no easy decision. After all, it is a taxable event. When the stock market is down or sluggish, however, a Roth conversion has more appeal. Traditional IRA owners “go Roth” for some very good reasons. A…
Are your investment decisions based on evidence or emotion? Information vs. instinct. When it comes to investing, many people believe they have a “knack” for making good investment decisions. But what exactly is that “knack” based on? The fact is, the choices we make with our assets can be strongly influenced by factors, many of…