thumbnail Benefits of Roth IRAs

We should all know that contributions to Roth IRAs are not tax-deductible. Since you’ve already paid tax on the money you put in, once you begin withdrawing, you don’t pay tax. Sounds good, right?

As with traditional IRAs/401ks, there are two types of Roth accounts: Roth IRAs and Designated Roth Accounts. The latter is similar to a 401k, in that it is typically employer sponsored and has a much higher contribution limit:

thumbnail Equity returns underperforming? Invest in alternative asset classes

While many people are content to leave their retirement assets in a managed 401k or IRA, there are non-traditional places to invest funds that can enhance returns, increase diversity, and control for volatility. These are referred to as “Alternate Asset Classes”. These methods typically require the creation of a Self-Directed IRA, since funds need to be in the investor’s control rather than in a retirement account.

thumbnail Should you Pay off your house: yes or no?

The easy answer is of course yes, but there are a number of other factors to consider, and not everyone is fortunate enough to be able to live mortgage free by the time they retire.

If you’re one of the lucky ones, you’ve now owned a house for a number of years and have positive equity. And if you’re young enough, you can pay your mortgage off by the time you retire, perhaps even sooner if you are able to make more than the standard payment.  For most families, getting the mortgage paid off early will take patience, perseverance, and sacrifice.

thumbnail Is your financial advisor working in your best interest?

Protecting your interest is critical to the success of retirement planning. Think of a real-estate transaction where three out of the four parties want a high price. The seller and both agents all make more money with a higher price, while the buyer wants the lowest price. In the case of retirement investing, external interests are at play that may conflict with your goals, and decrease your returns. This holds true even if your advisor has your best interests in mind.

thumbnail Managing Risk in 401k Plans

There is really only one goal to retirement investment, and it’s essentially the same as with other types of investing: maximize the return on your investment while minimizing risks. There are a myriad of ways to get there though, and just as many pitfalls and risks that will prevent you from recognizing your goal. (continues..)

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