Investing for your retirement is one of the most important things you can do for your future. Taking advantage of an IRA (Individual Retirement Account) to help supplement your future retirement income is always a good idea. Which IRA is best for you?
Before you open an IRA, take a look at the Roth IRA and the traditional IRA to see which one will benefit you more.
Traditional IRA
- Age – you must be under the age of 70½ by the end of the calendar year
- Income – to participate you must earn income (there is no maximum income limits)
- Contributions – may be tax-deductible, depending on income level
- Distributions – are penalty free and taxed as ordinary income when taken after age 59½
- Required Minimum Distributions – Are required April 1 of the year after the year you turn 70½ Continue Reading…
Dividend ReInvestment Plans or DRIPs can be a convenient and cheap way of compounding growth in your investment portfolio. If you are not signed up in a DRIP, any dividend paying securities (i.e. stocks, mutual funds, REITs, etc.) that you own will deposit all dividend payments into the accounts those securities are attached or you will receive a check if there is no brokerage account.
With over 8,000 mutual funds to choose from, picking a few to put your money into can be a bit overwhelming. If you have a 401k, the human resource department dwindled the list down a bit, if your lucky. But which to choose?