Archive

Archive for November, 2010

Which IRA is Best: Traditional or Roth?

November 19th, 2010

Whether you’re 17 or 70, there’s nothing wrong with thinking about retirement and primary investment retirement vehicles. An individual retirement account (IRA) can make your retirement a lot more relaxing financially. IRAs offer a way to save money for retirees while earning major tax benefits in the process. They provide tax advantages while saving.

Perhaps the two most common IRAs are the traditional IRA and the Roth IRA. Both offer excellent opportunities when it comes to tax benefits. Both also have specific advantages, depending on the person and his or her financial situation.

The real difference between the two involves the option of paying taxes now versus paying taxes later. Lots of people want to pay taxes up front so they won’t have to worry about it in the future – and also not worry about which tax bracket they’ll be in upon retirement.

With traditional IRAs, tax-deductible contributions are available depending on a person’s level of income. With Roth IRAs, there are no tax-deductible contributions. With Roth IRAs, you can take money out at any given opportunity without a tax penalty. With traditional IRAs, withdraws can occur for individuals at age 59 ½ and can be considered mandatory at age 70 ½.

While some like traditional IRAs, others are more comfortable with Roth IRAs. It all depends on you.

There are plenty of similarities and differences between the two, and our investment advisors in Fort Worth TX will be more than happy to assist you with your questions about IRAs or investment retirement. Call us today, or contact us online for more information.

Train Your Kids, Early and Often

November 8th, 2010

I’m sure we all have sat back, looked at our current financial states and said, “If I could do it all over again …”

Many of us who say that are now parents of young children, and the last thing we want is for our children to make the same mistakes that we did. Let’s be honest with ourselves, a lot of those mistakes were financial.

In order to make sure our children don’t repeat history, here are a couple of tips you can offer to them (and they are worded accordingly). Even if they are 10 or 11 years old, these tips can be very beneficial as they mature.

Take out the trash: When you see those pieces of credit card junk mail come through your mailbox, throw them away immediately. The last thing you need to worry about is a card that will give you 6 % APR for a couple months and then 25 % APR for the rest of your life.

Don’t touch the piggy bank: In other words, try to maintain a stable account, one that doesn’t have to be dipped in every other week (or day). Treat it as if it’s the emergency fund for your emergency fund.

Eat your food: By “your food,” we mean the healthy food that YOU purchased at the grocery store. You don’t need to buy a pizza or visit the local burger chain every day or every other day. Save that junk-food money and put it away for a rainy day.

Do your homework: Even though you receive advice here and there from everyone, it’s never a bad idea to do financial restoration research on your own. This, in addition to re-emphasizing important facts, also gives children a sense of achievement and teaches self-satisfaction and self-motivation.

Our financial planning professionals at Robinson Wealth Management Group are here for you for all money-saving questions – no matter what the age is. Feel free to contact us for more information.