Here, they ponder two alternatives: take a lump sum payment now or the long-term annuity that pays out at a later date. To get to the bottom of this question, they also have to break down the health of the pension plan.
Category: IRA
Traditional IRA vs. Annuity: Which Is Right for You?
It’s estimated that at least one out of every three Americans has no retirement savings in place. If you don’t have access to an employer-sponsored 401 plan, you’ll need to be especially proactive in identifying a retirement savings solution.
7 Reasons to Use a Roth IRA to Save for Retirement
The Roth IRA is one of the best, but least understood, ways for Americans to save and invest for their retirement. There are several things most people don’t realize about Roth IRAs — for example, did you know that you can withdraw your Roth contributions whenever you want, without penalty? Here’s what you need to know about the benefits of investing with a Roth IRA.
5 Smart IRA Moves You Can Make in 2017
Your IRA shouldn’t just be something you toss a little money into every year or two. According to the 2016 Retirement Confidence Survey published by the Employee Benefit Research Institute, about 29% of workers expect their IRAs to be a major source of income in retirement.
Interactive Brokers or TradeKing: Comparing Online Brokerage Accounts
Are you ready to start investing in stocks, ETFs, or mutual funds? You’ll need to open a brokerage account , which can be a lengthy and time-consuming process. But to avoid getting lost in the weeds, we think you can save some time and mental energy by focusing on the differences that are most meaningful to investors.
Interactive Brokers vs. TradeStation: Comparing Ways to Buy Stocks Online
Once you’ve mastered the basics of personal finance, it may be time to start thinking about how you can start growing your wealth for the future. You’ll need to open a brokerage account to get started, a dizzying process that can be complicated by the many different features of modern brokerage services.
The 2 Main Changes to IRAs in 2017
There aren’t a huge number of changes to IRAs in 2017 that will affect most retirement savers. 2017 will see the same maximum contribution of $5,500 for those who are under age 50, while an additional $1,000 catch-up contribution will bring the total maximum to $6,500 for those who are 50 or older.
17 Financial New Year’s Resolutions for 2017
Happy New Year everyone! For those of you who stuck to your long-term game plan in 2016, you were handsomely rewarded. All three major U.S. stock indexes pushed to new all-time highs during the course of 2016, and the unemployment rate hit a more than nine-year low.
How Tax-Savvy Are You? Find Out Here
You’re probably not as tax-savvy as you think you are or want to be. That’s not surprising, though, because our tax code is ridiculously massive and complex.
3 Tax Deductions That Could Save You Big Bucks in 2017
Tax time is approaching, and you deserve every tax break you can get in order to pay less to Uncle Sam. Fortunately, there are some huge opportunities to take advantage of tax provisions that are designed to help save you money.
What Ever Happened to the Education IRA?
Saving for educational expenses is an expensive proposition, and the government tried to make it easier for savers by offering a tax-favored vehicle that was initially known as an education IRA. Later, the name got changed to a Coverdell Educational Savings Account or ESA, but the idea remained the same: allow people to save on a tax-free basis for qualified educational costs.
Discount Brokers: A Comparison of E*TRADE and TradeStation for Long-Term Investors
To make your first investment, you’ll need to open a brokerage account . Picking the best discount broker isn’t easy, but we think the decision can be simplified by focusing on the most important factors.
Inherited IRA Rules: What Heirs Need to Know
Most retirement savers fully expect to spend all of their savings after they retire. Yet more often than you’d think, people die with money left over in their IRAs.
E*TRADE vs. Charles Schwab: A Brokerage Account Comparison for Long-Term Investors
Sometimes, it seems as if there are as many brokers as there are investments you can buy with a brokerage account. But rather than be dazed by the differences between them, we think that keeping a focus on a few of the differences can help you see how a broker can work for your portfolio.
Roth IRAs Can Help Ward Off the – Ghost of Retirement Future’
The spooky ghost scenes from “A Christmas Carol” are perfect metaphors for the past, present and future worries that haunt our retirement savings dreams. For some, Roth IRAs – which tend to see an annual spike in online search interest beginning during the holiday season – can help keep that “Ghost of Retirement Future” at bay.
15 Ways to Lower Your Taxes in 2017 — and Beyond
Paying taxes is necessary — after all, our government needs funding to provide things we need, such as schools, roads, courts, and so on. Still, there’s no need to pay more in taxes than you have to.
Are You Caught Up On Catch-Up Contributions?
Millions of baby boomers are closing in fast on retirement, and while retirement savings are coming up short for many, the IRS allows you to significantly boost your savings once you turn 50. These catch-up contributions can make a big difference in attaining financial security in retirement, so let’s review the IRS’ catch-up contribution limits for 2017, and provide some insight into just how valuable this tool can be. People participating in workplace retirement plans, including 401 and 403 plans, can contribute up to $18,000 of earnings to their plan in 2017.
5 Year-End Tax Moves You Need to Make
Though you have until mid-April of 2017 to file your 2016 taxes, now’s the time to start thinking about what that return might look like. Whether you’re worried about owing taxes or want to increase your refund, here are a few moves to make before 2016 comes to a close.