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Every time I’m on the internet or watching TV I hear much of the same investment rhetoric over and over and over.
I’ve written about this kind of thing in the past, in a post titled CNBC and Me. Well, in this post I’d like to peek into the retirement arena, where the needle seems to be stuck on repeat; specifically the Roth vs Traditional IRA debate.
When it comes to IRA planning, commentators are always delivering the same soggy, watered down message, often speaking out of both sides of their mouth. Here’s a good example of something you might hear…
‘When it comes to picking an IRA, sometimes investing in a Roth IRA makes the most sense, and sometimes investing in a traditional IRA makes the most sense.’
Want some visual evidence? Please take a minute to watch the above video produced by Vanguard and you’ll see what I’m talking about.
Yesterday I compiled a list of Roth IRA facts and opinions that I felt were important for you to be aware of for 2008.
Well the following list is a bit different.
Most of these points are fun, little obscure facts about the Roth IRA (I know I’m such a geek) that you may find interesting, but probably won’t influence your decision making one way or the other for 2008.
Unlike Friday, today I won’t bombard you with flowery, circumlocutory language. Let’s get to it…
I’ve dedicated a lot of time to the Roth IRA and referenced the traditional (or regular IRA) many times… its about time I took a closer look at the traditional IRA. Individual Retirement Accounts are primarily self directed savings and investment accounts, as opposed to employee benefit plans.
IRA contributions
Anyone who has earned income and has not reached age 70 1/2 may make contributions to an IRA. If a husband and wife both have earned income of $4,000 or more, both can contribute up to $4,000 to an IRA. If one spouse is working and the other is not, as long as the total earned income is above $8,000, the working spouse may contribute up to $4,000 on behalf of the non working spouse.
Ciaran McKeever is a CERTIFIED FINANCIAL PLANNERâ„¢ professional.
Chance Favors hopes to educate, encourage and empower those in their 30's and 40's to achieve financial independence. There's a heavy focus on all things Roth IRA and 401k, with special attention given to the upcoming 2010 Roth conversion event.
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