Archive for September, 2010

Roth IRA Explored

September 20th, 2010

Nest Egg ImageA Roth Individual Retirement Account (Roth IRA) is one of many retirement vehicles. You can make contributions to a Roth IRA account regardless of whether or not you contribute to a 401K plan or similar through work. Unlike a traditional IRA, you don’t receive a tax deduction for the money you contribute to your Roth IRA; however, you are able to withdraw money from a Roth IRA tax free during your retirement years. The maximum yearly contribution you can make to your Roth IRA is determined by the U.S. tax code – your tax professional or Fort Worth investment advisor can provide you with more detail.

What Are the Main Advantages of a Roth IRA?

When compared to the traditional IRA, the Roth IRA has a few potential advantages. These include the following:

  • Tax-free withdrawal when you are over 59.5 years of age and at least 5 years have passed since the Roth IRA was created.
  • No required minimum distributions. With a traditional IRA, you are forced to begin withdrawals when you reach 70.5 years of age.
  • Certain early distributions may be made without incurring early distribution penalties.

Is a Roth IRA Right For Me?

This is a question that is best answered by a professional. A high income level, for instance, may prevent one from participating in a Roth IRA. So, while Roth IRAs may benefit most people, it is important to have your Fort Worth retirement planning professional analyze your individual situation to determine the appropriate retirement savings strategy for you.

401k Expanded Upon

September 7th, 2010

Whether you have no idea what a 401k is, or you’ve been planning for years, our Fort Worth TX wealth management firm can lend a helping hand.

When one hears of a “traditional” mode of investment in the USA, one usually thinks of 401k planning, mostly because it is the longest running “quality-tested” retirement option for generations. It has remained a conventional choice for most Americans. This direction allows the employees to decide consensually on a sum that the employer will take out of their wages to be put in their individual 401k accounts. This way, a fixed saving has to occur every month. On many occasions, employer contributes to the employee’s 401k planning account too.

These days a new type of 401k planning called participant-directed plans is being undertaken everywhere. Under this scheme, the employee has the choice of picking up a package of bonds, mutual funds, and the lot. A lot of companies these days are providing their own stocks to employees as 401(k) plans. Whatever is earned through these investments is also, thankfully, tax deferred. And on top of it you also have compound interest too.

So, if you want to ensure a good retirement income, do not forget to read between the lines. If you’re putting your chips on our Fort Worth retirement planning firm, we can make a solid outcome into a reality.

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