Stay Connected!

myMoneyPower RSS Feed myMoneyPower Facebook myMoneyPower Twitter
Where Money Really Does Grow on Trees
Scott Reynolds
Scott Reynolds
Apr 14, 2010


Most employees have the ability to contribute to a group 401K retirement savings plan through their employers. Most employers will even match their employees contributions up to about 6%. Some employers offer a full pension plan with no employee contribution. However, if you are self employed or your employer does not offer any type of retirement plan, you will want to look into starting an Individual Retirement Plan. These plans are a way to save for retirement while also receiving tax advantages for doing so.

There are basically 2 types of plans available for individuals. The Traditional IRA and the Roth IRA. They both have beneficial attributes. You must determine the right one for you. In a Traditional IRA your earnings grow tax deferred until after age 59-1/2. When you withdraw them they are taxed at your current rate. Contributions and earnings can be withdrawn penalty free after age 59-1/2. In addition, in a Traditional IRA your contributions may be tax deductible.

The Roth IRA is the other plan available. In a Roth IRA your earnings are tax free if withdrawn after age 59-1/2. Contributions (only) can be withdrawn tax and penalty free at any time. However, unlike the Traditional plan, contributions to the Roth IRA are not tax deductible.

In both plans you have the ability to choose your investments. Typically you have the option to select from thousands of stocks, bonds, or mutual funds. A mutual fund is a vehicle that uses combinations of investments and is managed by a fund manager. Investing with a mutual fund allows you to spread your risk over a larger pool of investments.

Derek Allen
Derek Allen
Apr 07, 2010

For our last giveaway we asked our readers if they were getting a tax refund and how they were spending it. We received over 350+ responses and quite a few interesting answers. I examined all the responses and broke them down into pie charts. You should be able to notice quite a few trends in personal finance. Some expected, others not so much.

Are you expecting a tax refund?


Read the Rest of this Post »


Well, it is that time of year when we gather our W-2s, tax receipts, and scraps of paper we kept in a shoe box all year long to file our taxes. If you are one of the lucky ones you may even get some money back from the government (not that is good either, since you overpaid the government in the first place, but that is another story).  So what should you do? It is no wonder that tax season happens to fall near the Super Bowl and all the great commercials eliciting visions of flat screens and new cars are dancing in your heads.  But is that the wisest thing to do?

Read the Rest of this Post »

Page 1 of 11