Investments

Traditional Vs. Roth IRA: What Are The Differences

On one of my previous article, I’ve talked about the two types of non-employer sponsored retirement plan, which is the Individual Retirement Arrangement also known as IRA: The Traditional IRA and the Roth IRA. The Roth IRA is fairly new as the plan is only 13 years old (inception is 1998 as a result of […]

Traditional Vs Roth IRA: What Are The Similarities

On one of my previous article, I’ve talked about the two types of  non-employer sponsored retirement plan, which is the Individual Retirement Arrangement also known as IRA: The Traditional IRA and the Roth IRA. The Roth IRA is fairly new as the plan is only 13 years old (inception is 1998 as a result of […]

The Early Withdrawal Consequences on a Roth IRA

There might come a time when you’ll find yourself in a financial bind and  may not have any other options but to tap your retirement plans. The IRS considers any withdrawals from your retirement plan an early withdrawal or distribution if made before you reached the age of 59 1/2 years. In general, the early […]

7 Quick Facts About Roth IRA Contributions

In general, contributions to a Roth IRA are made using your after-tax dollars. Thus, there is no upfront tax savings to you, which may seem a bad deal on your current year’s finances. However, the key advantage of this type of IRA is if you start receiving distribution come retirement time, you will not have […]

My Employer Has Restored the 401k Matching Contribution

A few months ago, my company has been looking to cut cost in order to balance their budget. I guessed, I can say that to most companies during the economic downturn. The company does not have any plans of laying off people and we are also in a hiring freeze except for the critically needed […]

Early Withdrawal From IRA (Traditional): 9 Ways To Avoid the 10% Penalty

A distribution is considered an early distribution if it is made before you reach the age of 59 1/2 years. When you make an early withdrawal from IRA (Traditional), the funds will be included in your gross income and you will have to pay taxes on that. Please note that all distributions are subject to […]

9 Quick Facts About The Traditional IRA Contributions

In general, contributions to a traditional IRA can be deducted from your taxable gross income, thus, helping you save money on taxes. However, if you are covered by retirement plan at work, the tax deductions may be reduced or phased out depending on how much your gross income is for the year. While most people […]

3 Big Reasons Why You Should Save For Your Retirement

People have various reasons on why they prolong saving for retirement and majority can be attributed to the 3 poor savings habit. As an example, a lot of young people take retirement for granted easily because it is really hard to think what you’re going to do 20 or 30 years from now. They would […]

Types of Mutual Fund Equity Investment Options

Investing in our retirement funds is no easy task. Somehow, we would probably need to at least get an idea on where we are investing our money. There are a lot of investment assets available in the market nowadays such as bonds, cash equivalents, equity funds, stocks, etc. Although investing in direct stocks may yield […]

Why You Should Fight For Every Percent You Can Get on Your Finances

1%, it seems so little and potentially, a regular person may think that it is very immaterial. However, when you apply it to your finances, this one percent makes a big difference!! Check out how this 1% affects both your investments and debts.

Most Common Types of Employer Defined Contribution Plans

A defined contribution plan is retirement plan that does not promise a specific amount of benefits at retirement. In fact on these plans, the employee or the employer or both contribute to the employee’s individual account under the plan, sometimes at a set rate of return, for example, a 7 or 8 percent of earnings […]

Individual Retirement Accounts (IRA): A Quick Overview

Nowadays, majority of the companies offer a retirement plan and the most common type is the 401(k). However, if your employer does not offer one, you can still save for retirement and enjoy the tax-deferment features by opening an Individual Retirement Arrangement or IRA. In the past, not many employer offer a retirement plan at […]