IRAs
Traditional, Roth and SIMPLE
IRAs (Individual Retirement Accounts) are another vehicle to help you save for that proverbial permanent vacation in the future (no not death, retirement), and by vehicle I mean that new sexy 2050 4d Musclestang Convertible that you will be flying around with your comb-over hair blowing in the wind.
IRAs are retirement accounts, not set up by your employer (except SIMPLE), but by you. They are your own personal retirement savings; you can have an IRA as well as an employer sponsored retirement plan. Banks typically offer IRA accounts as well as asset management companies like Fidelity. These IRA account types have similarities and differences much like their 401(k) brethren. You remember those don’t you? Actually, some of the features of these accounts are similar to the 401(k) plans because they were actually based off of each other. There are 3 main IRA accounts we will focus on: Traditional IRA, Roth IRA and SIMPLE IRA. The Three Amigos… ¡arrrrriba!
financial factoid
Employers paid 82 percent of the cost of premiums for single coverage and 70 percent of the cost for family coverage, for workers participating in employer sponsored medical plans. (Source: bls.gov)
check out these articles
- Should You Buy Long-Term-Care Insurance? May 14, 2012Mark Meiners says yes, because you need to be prepared, not just hope for the best. No, says Prescott Cole, because the cost is too high. […]
- Are Variable Annuities a Good Investment? May 14, 2012Ellie Lowder says yes, because they offer the assurance of a guaranteed return. No, says Lewis Altfest, because they are too costly for the benefits they provide. […]
- Plan for Your Parents' Financial Future May 13, 2012Getting involved with parents' plans for their golden years can keep young adults from having to shell out big money later on—or at least prepare them for it. […]
- State Governments Eye 'Inactive' Broker Accounts May 13, 2012At risk are accounts that states say may be inactive or abandoned but are simply running on the investing equivalent of auto-pilot—dividend re-investment plans. […]