Retiring with a Traditional IRA
Investing money for the future is an important financial decision, and there are many different avenues for long-term investing. One of the most popular ways to prepare for the future is the traditional Individual Retirement Account (IRA). An IRA is similar to a 401(k) in that it is a deferred payment account, which has several advantages. Having a deferred payment account like a traditional IRA means that money is deducted from your pay check on pre-tax basis. This means that the money you contribute to the IRA is not taxed by the government. In order to be tax exempt the ...
The History and Benefits of Social Security
The US social security program dates all the way back to the Great Depression when President Roosevelt signed the New Deal. As part of the New Deal, Social Security was set up as an insurance program to ensure the senior citizens would have an income. Social Security also included unemployment benefits and child welfare. This government program is funded through payroll taxes under the Federal Insurance Contributions Act. Social Security Timeline The Social Security Act has gone under several amendments since it was enacted. In the 1930s, the Social Security Trust Fund was created so that the monies that were paid into ...
Retiring with a Roth IRA
In 1997, the government reduced many federal taxes as part of the Taxpayer Relief act of 1997. One of the proponents of this act was a Delaware Senator named William Roth. He introduced the idea for the Roth Individual Retirement Account (IRA). The main benefits to the Roth IRA are the revised tax rules that let the Roth IRA be more flexible in some ways than the traditional IRA. Planning for your retirement is an important financial step. And there are many different retirement accounts that can help you start to save for your future. There are 401(k) accounts, traditional ...
The Basics of Annuities
When planning for your retirement and future, you have several options to help secure your financial situation. There are traditional IRAs, Roth IRAs, 401(k)s, Social Security and even annuities. Investing in annuities can actually help you supplement other income once you reach retirement age. An annuity is a contract between you and an insurance company. You pay the insurance company a certain amount of money, and they agree to make payments to you – either in one lump sum or in smaller payments over a period of time. The insurance company will invest your money so that it grows before ...
401(k) – Smart Planning for the Future
Whether retirement is five years down the road or 40 years down the road, it’s wise to have a financial plan in place. That’s why many employers offer what is called a 401(k) plan. The term 401(k) comes from a tax code within the IRS. A 401(k) plan is a way to save money by deferring a portion of paycheck to the 401(k) sponsor – most of the time arranged through your employer. Most people elect a certain percentage of their check to be deducted each pay period to put towards their 401(k). Many times employers offer a matching incentive, ...
Your Introduction to the Stock Market
The Basics If you’re looking to invest in the stock market or invest in a publicly traded company, you’ll first need to know about stocks. Stocks are way to show that someone has purchased a piece of a company. A company is usually a privately owned company – meaning that the public cannot purchase any part of it – or it is a publically traded company. This means the company has issued stocks for the general population to purchase. Types of Stock In general there are two kinds of stocks you can purchase. There are common stocks and preferred stocks. With common stock, when ...
Hands-off Investing – Mutual Funds and Exchange Traded Funds
For someone looking to invest money with a hands-off approach and willing to take some a risk, mutual funds could be the perfect solution. Mutual funds are a group of investments. Someone who manages these investments gets multiple investors and then invests their money in the stock market, bonds and securities. As the value of stocks increase, dividends are paid and bonds mature, these profits are divided among the investors. Or if your mutual fund value overall increases, you can sell it for a profit as well. Once profits are determined, you can receive a check or you can reinvest your ...
A Safer Way to Invest – Municipal Bonds
Investing in the stock market or in corporate bonds may be a good way to earn some extra money. But often, there is a certain amount of risk that is attached to these types of investments. Those who are looking to invest money, but without much risk, municipal bonds may be their best option. First, what are bonds? To an issuer of a bond, the bond is a type of debt. But to someone who buys a bond, the bond is a type of loan. Municipal bonds are issued by the government to help make improvements in communities – by ...
Investing in Corporate Bonds
If you’re looking to invest in a company but don’t want to buy stocks or get involved with the stock market, corporate bonds may be an option. To better understand what a corporate bond is though, you should first know the basics of a bond. A bond is way for an issuer to raise money from a lender or lenders. These bonds are issued for a specific amount with an agreed upon interest rate to be paid at the end of a fixed period. At the end of that period, the bond has matured and the money must be paid ...
Certificates of Deposit (CDs)/Money Market Funds
A certificate of deposit (CDs) is nothing more than a guarantee to a bank that you’ll leave a certain amount of money deposited at the bank for a certain amount of time. Banks use the money to operate, to invest and to make loans. In exchange for agreeing to leave your money deposited at the bank, the bank will pay you interest. Certificates of Deposit can be a good way to invest money without having the associated risk of the stock market or purchasing bonds. Also, CDs are easily handled through your bank without having to go through a broker ...
Investing
Your Introduction to the Stock Market
The Basics If you’re looking to invest in the stock market or invest in a publicly...
Hands-off Investing – Mutual Funds and Exchange Traded Funds
For someone looking to invest money with a hands-off approach and willing to take...
A Safer Way to Invest – Municipal Bonds
Investing in the stock market or in corporate bonds may be a good way to earn some...
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What You Need to Know About Mortgages
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Home Equity Loans – A Low Interest Alternative
If you own your own home, and you’re looking to take out a loan, then a home equity...
Learn How to Consolidate Your Debt Today
Debt consolidation is exactly what its name implies – it’s grouping together...
Read More From Credit & DebtRetirement
Retiring with a Traditional IRA
Investing money for the future is an important financial decision, and there are many different avenues for long-term investing. One of the most popular ways to prepare for the future is the traditional Individual Retirement Account (IRA). An IRA is similar to a 401(k) in that it is a deferred payment account, which has several advantages. Having... [Read more]
The History and Benefits of Social Security
The US social security program dates all the way back to the Great Depression when President Roosevelt signed the New Deal. As part of the New Deal, Social Security was set up as an insurance program to ensure the senior citizens would have an income. Social Security also included unemployment benefits and child welfare. This government program is... [Read more]
Retiring with a Roth IRA
In 1997, the government reduced many federal taxes as part of the Taxpayer Relief act of 1997. One of the proponents of this act was a Delaware Senator named William Roth. He introduced the idea for the Roth Individual Retirement Account (IRA). The main benefits to the Roth IRA are the revised tax rules that let the Roth IRA be more flexible in some... [Read more]
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