Top Reasons To Open A Roth IRA Today

in Finance, Retirement , by Bonnie

What are the top reasons to open a Roth IRA today?

  • The number one reason is that the money is taxed going into the Roth IRA account, not when it comes out. Paying the taxes before retirement means more money for retirement.
  • The Roth is more flexible than a regular 401-k savings account. You choose what you want to invest in for yourself. These investments can range from stocks, bonds, mutual bonds, index annuities, or even real estate. You decide, not the CEO of your company.
  • Earnings on your investments can be tax deferred or tax free upon withdrawal if certain conditions are met. Earnings in a traditional retirement are tax deferred until withdrawn and certain early withdrawal penalties may apply if you are under the age of 59.5 years.
  • A single person can withdraw up to $10,000 to buy a home after saving for five years. If married the amount of the withdrawal can be up to $20,000. There are no penalties for early withdrawals of this type.
  • There are no penalties for withdrawing from your Roth account as long as you do not withdraw any earnings you have received on your investment. A regular 401-k or company saving plan can charge penalties, fees or interest on money withdrawn. These withdrawals can be a big help for paying for life’s unexpected events. This withdrawal can also be used for your child’s education.
  • Starting today allows you to save more for the future. The earlier you start to save the more you will earn on your investment. The earlier you start to save the more you can deposit into the account.
  • The IRA account can be used as collateral if you wish to open a business, or to help fund someone else’s new business. This means using the business as an investment for the account.
  • A Roth account can be left to your spouse or children if something happens to you. The inheritors do not have to pay income tax on the money withdrawn from a Roth account.

As you can see there are many top reasons to start a Roth IRA so contact a financial adviser so that they an explain how to open IRA today. Planning for your retirement has never been easier. Just decide how much you want to save and where you want to invest the funds in your account.

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Are Cheap Stocks a Good Investment?

in Finance , by Bonnie

Financial crisis is what motivates most of us to invest on cheaper stocks. The important question is, if it is a good investment. We tend to eye on the cheaper brand with good quality as compared to an expensive brand with the same matching qualities as the cheaper brand. Bargain sale easily catches our attention. This goes well in trying to find cheaper stocks to invest in that would substantially generate a good income. It is a basic or a fundamental step to learn the ins and outs of an appropriate investment scheme to fully commit yourself to the business venture you are to embark on. The success of your investment starts from learning the basic trade of dealing with cheap stocks by observing the market ardently.

Penny stocks can be an alternative in choosing for a cheap stock. It covers a minimum of $5 and lowers so you can easily avail of it. New companies that are starting issues penny stocks to give a boost to their capital in generating their product. In other words, your dollar that you invested in their company will help in running the business smoothly. This will help in manufacturing the products that they sell or help in establishing the service that they render. Such an activity is normal for new companies that are simply beginning. They open floating stocks to the public in order to get enough support for their business to thrive and flourish. It is therefore eminent for you to choose wisely on which company will most likely to succeed and grow.

Choosing the company that will be an asset for your financial growth seems to be a very impossible task. Few tricks of the trade would suggest that you have a peak at the stock market for a visual interpretation of how the company is actually fairing in the trade. A good percentile increase would mean a good investment prospect for your stock venture. Information from an insider or from a personnel or employee of the company is also an asset for decision making in cheap stock investment.

Penny stock or cheap investments may be a small amount for some but everything must start somewhere to lead on to the next. As everybody knows that each one of us crawled before we learned to walk and run. Cheap stocks are good investments if you place your heart and mind into it.

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