Roth IRA

When it comes to choosing a retirement savings plan, you have options. You can put your money into a traditional IRA and score an upfront tax break in the process, or you can forgo that immediate tax break but enjoy other perks with a Roth IRA. Roth IRAs allow your money to grow tax-free so the IRS won't take a chunk of your investment gains. And during retirement, your … [Read more...] about This Lesser-Known Roth IRA Benefit Could Leave You Richer in Retirement

Chip Somodevilla / Getty ImagesThere's certainly no shortage of advice about how to invest for a successful retirement. However, sometimes it can be hard to know who to believe. If you don't have a trusted fiduciary financial advisor, the next best place to get advice is from those who have become multimillionaires themselves.Discover: See the Full List of Money's Most … [Read more...] about Suze Orman, Warren Buffett and Other Money Experts Weigh In on How To Best Set Yourself Up for Retirement

Dear Liz: I never understood Roth IRAs. They don’t offer a tax break for contributions, so they cause you to pay taxes on your money when you’re working and in a higher tax bracket. With a regular IRA, you get a tax break upfront when you’re in the higher tax bracket and then you pay taxes on withdrawals when you’re retired and in a lower tax bracket. What am I … [Read more...] about Liz Weston: Let’s take a look at the advantages of a Roth IRA

Roughly 4 million people are expected to graduate from college this year, including this spring. For many, their financial education starts now.It's one thing to pay attention to book knowledge about financial topics, assuming you received any such instruction in school. It's another ballgame when you have personal decisions to make with real money — and your future — on the … [Read more...] about Key financial advice for graduates and others entering the workforce

Dear Liz: The state where I live, Oregon, has removed the tax deduction for 529 college savings accounts. This was quite disturbing to discover upon getting my taxes done this year. Other than the obvious savings benefit, are these accounts still worth having? Fortunately our son is almost done with college, so it won’t affect us much, but I am thinking of my two … [Read more...] about Why 529 college savings plans are still worthwhile

A self-directed IRA allows investors to hold unique and varied investment options inside a retirement account. Unlike traditional IRAs or Roth IRAs, which often consist of stocks and bonds, a self-directed IRA provides a broader selection of investment options. "The account owner is the person who is managing the account, and therefore they must take on the responsibility of … [Read more...] about A Guide to Self-Directed IRAs

Getty getty The 2020 tax return season is finally reaching its filing deadline. With over 126 million tax returns received by the IRS as of May 5, it seems that most taxpayers have filed. However, there are always taxpayers who wait until the deadline to file their returns. As a result, with the new deadline of May 17, 2021 looming, there are some last-minute … [Read more...] about Don’t Forget These Last-Minute Tax Planning Ideas That Can Save You Money

Regardless of your age, no one ever likes to feel like they are starting over. Whether it’s life after a marriage that has ended in divorce or picking up the piece of your career after a job loss, these periods of upheaval are difficult to navigate and can be embarrassing, stressful, and exhausting. Recovering from bankruptcy is no different. While bankruptcy is often the best … [Read more...] about How to Start Over After Filing For Bankruptcy

Many families could be looking at more money than they've ever seen at once when you add stimulus cash of up to $1,400 a person on top of a healthy income tax refund.So — if you haven't already spent it — what's a solid plan of attack to save it?"If someone has credit card debt, I think the best use of any money would be to pay it off," according to George Papadopoulos, a … [Read more...] about Why you might pay other debt, not student loans, with stimulus cash

Image source: Getty Images.2. Delay your filing as long as possibleYou're entitled to your full monthly Social Security benefit, based on your wage history, once you reach full retirement age (FRA). FRA is either 66, 67, or somewhere in between, depending on when you were born. But you don't have to sign up for benefits once you reach FRA. In fact, for each year you delay your … [Read more...] about 3 Social Security Strategies to Bankroll Your Retirement | Personal-finance