Blog Home
Archives
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- August 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- November 2011
- October 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
Categories
Monthly Archives: July 2009
What is the Difference Between a Traditional IRA and a Roth IRA?
The biggest difference between a traditional IRA and a Roth IRA is when the assets are taxed. While the traditional IRA provides an upfront tax deduction and tax deferral on an investment’s growth, a Roth IRA does not provide an initial tax deduction but the assets grow tax-FREE. Which investment vehicle is superior for a [...]
Posted in Uncategorized Leave a comment
What is an IRA?
Individual retirement arrangements (IRAs) are investment vehicles, established without the backing of an employer, that provide tax deferral on investments. Contributions to IRAs can be deductable or non-deductable on a current tax return (depending on whether the tax payer is an active participant in an employer-sponsored retirement plan and their modified adjusted gross income). Both [...]
Posted in Uncategorized Leave a comment
How do 403(b) and 457 Plans Compare to 401(k)s?
403(b) plans, also known as tax sheltered annuities (TSAs), and 457 plans are quite similar to 401(k) plans. Both plans allow employees to defer income and benefit from tax deferred growth, and both plans enable employers to provide matching contributions. 403(b)s and 457 plans, like 401(k)s, have a 2009 contribution limit of $16,500 with an [...]
Posted in Uncategorized Leave a comment
What do I Need to Know About my 401(k)?
A 401(k) plan enables employees to defer receiving and paying taxes on a percentage of compensation. The salary reduction amount is deducted from the employee’s paycheck and contributed to a retirement fund, where it accumulates earnings tax-deferred until it is distributed. Tax deferral is advantageous in that it reduces the employee’s annual tax liability, and [...]
Posted in Uncategorized Leave a comment
Is Ordinary Income Different from Capital Gains?
Earned income (typically from employment) is considered ordinary income. In 2009, ordinary income tax rates range from 10 to 35 percent. An individual’s marginal tax rate is the percent of the last dollar made during the year that must go towards taxes. It’s important to note that a taxpayer’s marginal tax rate is not applied [...]
Posted in Uncategorized Leave a comment
What are Target-Date (Lifecycle) Funds?
Target date funds (also called lifecycle funds) are mutual funds that link an investment portfolio to a particular time horizon. In fact, most target date funds have a date attached to their name. This date should be correlated with a particular event in the investor’s life, most usually their expected retirement date. These funds are [...]
Posted in Uncategorized Leave a comment
How are ETFs Different From Mutual Funds?
Exchange traded funds (ETFs) are similar to mutual funds in that they are registered with the SEC as an investment company, and they pool investor’s money into a basket of securities such as stocks, bonds, and money markets. However, ETF shares are different from mutual funds in that they trade on a stock exchange so [...]
Posted in Uncategorized Leave a comment
What Should I Look For In a Mutual Fund?
A mutual fund is an investment management company that pools the money of investors and hires an investment advisor to invest that money in an attempt to achieve a financial objective. Mutual funds can invest in stocks, bonds, money markets, or other securities, and may be designed for current income, capital appreciation, or capital preservation. [...]
Posted in Uncategorized 1 Comment
Should I Utilize Money Market Accounts?
Money market securities are generally very safe investments which produce a relatively low return. These accounts are most appropriate for temporary cash storage or a short-term investment fund. Money market investments always have a maturity of less than one year, and in many cases, less than 30 days. Certificates of deposits (CDs) and treasury bills [...]
Posted in Uncategorized Leave a comment
How is a SEP Different from an IRA or 401(k)?