Which IRA Is Best For You?
An Ira is one of the greatest ways to save on taxes currently and accumulate money for the future. For individuals three types of IRA's will normally come under consideration. The Traditional or Regular IRA
The Education IRA
The Roth IRA Education IRA is now called the Coverdell Education Savings Account (ESA). Education IRAs allow you to save for qualified higher educational expenses for a beneficiary. Parents and guardians are allowed to make nondeductible contributions to an education IRA for a child under the age of 18. Contributions are allowed prior to the beneficiary turning 18, and contributions may not exceed $2,000 per beneficiary per year. Contributions are made with after-tax dollars. There is NO deduction for the contribution. Withdrawals, however, are tax- and penalty-free when adhering to certain rules. The traditional IRA allows you to contribute an amount and take a current deduction for the contribution. Withdrawal minimums must begin at a certain age and all withdrawals are taxable at the rate applicable when withdrawals are made. The main benefit is that any growth or gains remain free from taxation up to the point of withdrawal. Thus you would be getting tax-free accumulation. The Roth IRA is perhaps the simplest - and potentially the most effective - sheltered account available. Roth IRA has a tax structure different from any other IRA: contributions are after-tax (no deduction is available) but growth is tax-free; AND once you put your money in you NEVER pay taxes again. Additionally, unlike a regular IRA, a Roth IRA does not require that you
start withdrawing funds at age 70˝ or any other time. It's more flexible? Since you have already paid taxes up front, there are no minimum distribution requirements and since withdrawals are not reportable income, they won't affect your adjusted gross income during retirement. There are special techniques and strategies in creating and managing ANY IRA that create some huge benefits for the right person under the right circumstances. If you've ever been successful investing in things other than stocks and bonds, you've probably wished that these investments could be included in your IRA, 401(k) or other tax-deferred retirement plans. Amazingly to most people it's possible to have retirement dollars in
vehicles such as: Real Estate
Limited Liability Corporations,
Private Stock Offerings,
Trust Deeds,
Mortgage Notes,
Leases and Lease Options,
Joint Ventures,
U.S. Treasury Gold and Silver Coins,
Gold Bullion and many others. While some investors are privy to the information above, most people are just clueless to the fact that they have a lot more avenues for investing than what their Wall Street Journal tells them. If you are interested in exploring what your financial advisor knows that you don't, including where they put THEIR money for strategic returns and investments, you can check out my free site on IRAs at http://www.irainfo4u.com. More information about these strategies are also presented in my new book, "Scientific Wealth Strategies." C.C. Collins is a Wealth Building Advisor and Author of "Scientific Wealth Strategies" at http://wealthscientist.com Find more information at http://www.irainfo4u.com
Related News
|
 |
|
|
RELATED ARTICLES
Retire Dollar Smart
Jim Miller is a registered investment advisor. This means that he is not beholden to a particular brokerage or financial institution. As such, he does not charge monthly fees for "money-managing"; instead, through a consultation fee he is free to give whatever advice will best benefit his clients; he doesn't have to serve them whatever "flavor of the month" the brokerage or financial institution happens to like at that point in time. His investment advice in his book, "Retire Dollar Smart," is clear and filled with common sense.
Invisible Mutual Fund Fees Erode Your Returns!
Many investors think that investing in mutual funds is free. What nonsense! Funds collect more than $50 billion a year in fees from investors. That is truly a ton of money. The first way you get hosed in a mutual fund is due to high fees charged. These fees can dramatically reduce your returns over time!
The Differences Betweeen the Wealthy and Everyone Else
I recently received an e-mail from a young lady who had doubts about the principles of wealth found in "Rich Dad, Poor Dad". She mentioned a couple of past failed investments, and wanted to know what I thought about investing and financial freedom - whether it was just a myth, or whether it could be acquired. I thought I'd share it here for the benefit of those who have struggled with investing, or perhaps from ventures that didn't quite pan out. Here's what I wrote back to her:
How to Choose the Right Share Class
You'll want to opt for the no-load or institutional share class instead. If you're a no-load investor who is determined to buy a fund that's primarily broker-sold, go through a supermarket and opt for the D shares.
Why You Need To Buy and Sell Gold Coins (Part 3)
Putting Rare Coin Market Cycles to Work for You...
Success Trading: Some Basic Terminology for New Traders
The world of trading can get very complex because the financial markets are complex. There thousands and thousands of successful traders out there today. The amazing thing is that they all have carved their own niches and approach the markets in a unique way. This should be wonderful news for beginning traders because it demonstrates that there are thousands and thousands of different ways to proper in the markets. It's just a matter of discipline and finding the approach that suits your style and personality. With all that being said, new traders must begin somewhere, so let examine some basic terms and approaches to the markets.
The American Age of Inflation is Over
"The American Age of Inflation is finished." So says economist Robert Samuelson in his December 2nd Washington Post column.
How To Create Wealth In The Stock Market
First and foremost, an opportunistic strategy for creating wealth in the stock market is needed. And the opportunistic strategy for creating wealth in the stock market must have two ingredients, a plan and a goal. The plan must be a definite, concrete plan of investing that would profit you and your family for the rest of your lives.
Easily Finding A Good Stock
There is a tremendous amount of software,
complicated high priced newsletters, radio and
TV stock pickers and Internet web sites that
will help you find a stock that is going to make
you rich.
Trading Systems
A trading system consists of a set of rules for viewing markets and making trades. The advantages of trading systems can be hidden when they become associated with trading platforms involving trade order submission and processing. A clarification of their roles can help explain the benefits of using a trading system. This can be done without identifying a particular platform or system. Once the platform infrastructure is isolated, a brief look can be taken at why a trader can benefit from a trading system.
Annuity Owner Mistakes
Okay, so I can tell you I have sat in front of countless numbers of people who have made mistakes when purchasing and owning annuities. And I have visited people who wish they never got involved in an annuity. And I have seen people who say that their annuity is their worst nightmare...So what is it that makes the annuity such a bad thing for some people and such a great vehicle for others??? Well I am about to tell you...and it all goes back to the annuity owners biggest MISTAKE. Yes, not mistakes but mistake.
Online Trading Options Strategies - Rolling
Rolling is defined in options online trading as moving a position from one strike to another either vertically in the same month, horizontally to another month or some combination thereof.
Eight Questions to Ask Your Financial Advisor
You may like your financial advisor, but is he really looking out for you? All advisors are not created equal, and you have a right to know what makes them different! You also have a right to ask yours if he compares!
Trading Tips No 3: Online Trading and Investing: Buy, Hold, and Hope
So you have learned how to trade the markets by mastering a few trading tools like Moving Averages, Channels, Stochastics, MACD, or RSI - that is a great accomplishment achieved by only a few. However, having the tools and rules to trade markets successfully, year in and year out, is only half of the challenge. The other half is far more daunting and achieved by even fewer investors - I am talking about good old-fashioned discipline. That is, discipline to follow your indicators and rules without fail - every trade entry and every trade exit. This is why it is critical that you learn how to trade. This is the ‘moment of truth’ in the life of every trader or investor.
June 2005: Weather Forecasts for Weather Traders
If Johannes Kepler, the renowned 17th century astronomer and discoverer of the planetary laws of motion, could speak from the heavenlies, he might have a few words of wisdom to share with the National Weather Service. Although Kepler's name is not normally associated with meteorology, he was quite the weather forecaster in his day. His first claim to fame, by the way, was not due to his discovery of those planetary laws, but because of his accurate long-range weather forecast of the severe winter that put Styermark, Germany on ice in 1593.
Stocks, Oil, and Bonds
A barrel of oil bounced to over $60 Thu, which triggered a steep sell-off in the stock market Thu and Fri, although oil pulled-back to around $59 a barrel, and closed at $59.84 a barrel Fri.
Buying a Home - Your BIGGEST Investment
This column has often focused on intangible investments like stocks that a young investor might hold in their portfolio. While these are one of the most important components of an investment plan, it is not the dominant one for most young people. Even for some who are much further down the path of life, stocks and bonds often pale in comparison to the role that a home plays in their investment life.
What If You Absolutely Positively Could Not Lose - Would You Play the Stock Market?
Seniors on fixed incomes face a unique problem. Where do
they invest their savings to get maximum return on
investment with limited risk? Some of the traditional
places like CDs and Treasury Notes are extremely safe,
however the yields tend to be very low. Stocks and Mutual
Funds while offering a potential for a higher yield have a
risk factor that most seniors find unacceptable.
Find a Methodology and Minimize Investment Madness
There are many reasons to be investing these days, and too much opportunity to not have your money working for you.
Creating Wealth by Gearing Up
Gearing is where you borrow money to invest. As already mentioned, it is best to clear all your debt before looking at investment. However, there will arise situations where the investment is a good one and it is necessary to borrow a small amount to make the deal work. The borrowing may be for property or shares.
|
