Tag: Retirement Savings and Investments

Saving for retirement is hard.  However, when you are still working, creating a retirement investment plan can be relatively straightforward.  The goal is to simply grow the money. But, when you retire, your investment goals become multi-faceted, layered, and downright complicated. You still want your money to grow, but you have a whole lot of other factors to consider. Competing Retirement Investing Goals Just like when you were working, a decent return on investment is important after you retire. However, here is a look at six competing priorities you need to balance for a solid...

Tax deferred? Tax free? Tax advantaged? It might sometimes feel a bit taxing to think about the tax implications of a Roth conversion. However, it is probably worth your brain power because a Roth conversion can be tremendously beneficial in the right circumstances. What is a Roth Account? A Roth account is a type of 401k or IRA. The main difference between a Roth account and a traditional retirement savings account is tax treatment: Money in a traditional 401k or IRA grows tax deferred, meaning that you pay taxes on the money when you withdraw the funds (and no taxes at all when you invest...

Doing a Roth conversion — also known as a “backdoor Roth IRA” — is perhaps even more appealing in 2018 than ever before. Why? Low 2018 tax rates. What is a Roth Conversion? Backdoor IRA? A Roth Conversion is when you convert money that you have in a traditional IRA to a Roth IRA. This is sometimes called a backdoor Roth IRA because instead of investing money in a Roth, you are converting money. With a conversion, you can get around both the income and contribution limits. It’s a “backdoor” way to get money into a Roth. What’s the Catch? While...