Every year, millions of taxpayers wonder whether it's best to put their retirement money into a 401k plan or an IRA. Of course, the ones who have to make the decision are the lucky few who have access to an employer-sponsored 401k; you can't start a 401k on your own. Still, it's not always clear what the best strategy is. Should you max out the 401k and ignore IRAs altogether? Or is it smartest to only use IRAs, either a Roth or a traditional version, and forego the 401k? Here's a look at what the overall strategy should be for those who have the option of a 401k, along with a list of pros, cons and contribution limits for each type of … [Read more...]
Learning About Consumers
Running a business means never stopping in your efforts to understand more. Understanding more about your industry lets you find better ways to do what you do, to anticipate changes, make savings and get to the next big development first. Understanding more about your employees let’s you be sure you’re getting the best from them, drawing on all the relevant skills they have for you and not driving them towards burnout without respite. Perhaps most important of all, learning about your customers means you can adapt your products and services to fit them better, tailor your marketing to be more attractive to your audience, and your marketing to … [Read more...]
What are the Differences Between a 401k vs. IRA?
When it comes to retirement and savings, it's hard enough to free up extra money in order to contribute to the future, but it's necessary. So how do you choose where to put your hard-earned money? The two most common vehicles used by most people nowadays is 401(k) plans and Individual Retirement Accounts. The difference between a 401(k) and IRA is that an employer establishes a 401(k) and an IRA is set up by individual investor many people want to know what are the differences between an IRA vs. 401k. Here are the significant differences: IRA v. 401k Simply Put A traditional IRA is available to any person who is below the age of 70 ½ … [Read more...]
What You Need to Know About Contributing a 401(k) in 2018
Now that the new 2018 tax plan is in full force, whether you have started receiving larger paychecks or not, it’s always a good idea to go through the W-4 form, not to mention compare on your 2017 taxes that you probably have filed by now, whether you owed or had a return, to ensure accuracy. Going through now with more paychecks remaining since it’s March, more to spread out any additional tax payments you need to make, especially if you’re a two-income earning household. After you figure out the tax situation you can see what funds you have available before you can say what does ira stand for. Contribution Limits I know it’s easier … [Read more...]
Does an IRA or 401(k) Make More Sense
You often hear IRA and 401(k) thrown around, and you may only know 401(k) because of work, so what is the difference between the two? 401(k) is an employer-sponsored retirement plan, so if your work offers this it will be a good idea to make sure you are contributing, especially if you are offered any company matching. If your work does not offer 401(k), or you are looking to invest in another account, an IRA is a great choice, and you can choose between a traditional and Roth, depending on what your saving priorities are. Contribution Limits One of the key differences between any IRA and a 401(k) are the contribution limits, which … [Read more...]
How to Invest a Little Bit of Your IRA or 401k to Binary Options Trading
It goes without saying that you will want to ensure that your IRA or 401K, depending on which retirement account you choose, grows as much as possible throughout your career. In order to maximize that growth there are a couple of key points, the first is to start as early as possible so that you can put more years in the bank when it comes to your savings, the second, is using your IRA or 401K to invest in a wide range of financial markets. It makes a lot of sense to diversify your portfolio and invest a small amount of your IRA or 401K in many different ventures. One such area that you simply must consider when it comes to electing where … [Read more...]
What Does IRA Stand For Anyways?
If you’ve ever wondered “ what does IRA stand for ?”, then you may be surprised to find out that the IRS defines it as an “individual retirement arrangement”. This is slightly different than the common definition of an “individual retirement account”. Although similar, an individual retirement account is simply one form of the broader range of individual retirement arrangements that exist under the US Publication 590 (the laws where IRA’s come from). … [Read more...]
Getting to Know the 401k Rules of Your Employer Retirement Plan
Getting to know the 401k rules of your employer retirement plan isn't difficult. All you need is to understand some of the main basics and how they will affect your goals. Why should you care? Because your employer sponsored retirement plan isn't just a good way to grow your investments tax free, but it could also be your ticket to free money beyond what you decide to contribute. This all depends on what your employer's rules are and whether or not you are doing everything you can to take full advantage of them. When you combine the benefits of your 401k with the power of your IRA accounts, you can really maximize all the resources … [Read more...]
How to Survive in a Financial Drought
Before you can properly save for retirement, you first have to make sure that your personal finances are properly in order. Depending on what kind of job you have, sometimes there will be times where you simply run across a financial drought. From losing work to losing a second source of income, it is always necessary to have backup funding. If you don’t have that already, these five suggestions below can help you in a financial drought. Review Your Budget for the Past Three Months Many people will say to create a budget for yourself to live by when in a financial drought. This is actually the best advice to do before the … [Read more...]
Roth IRA Basics and How They’re Different From a Traditional IRA
One of the biggest stumbling blocks to getting started with an IRA (individual retirement arrangement) is knowing which type of one to sign up for. Should I sign up for a Roth or Traditional? We know that both are useful, but which one will give you most amount of benefit over the long term? To really understand this, it helps to know your Roth IRA basics and how they are different from those of a Traditional IRA. Although both are excellent tools to be used in conjunction with your IRA vs 401k strategy, it is also likely that one of them will be better suited to your individual needs. To help you understand the differences, here is a … [Read more...]