introduction by Alice Shaffer
Last week, Breedlove & Associates shared with us a post called Nannies & Retirement Planning. One of the downfalls of being a professional nanny is that we are not eligible for 401ks like those in other jobs. So we must look to getting a ROTH or Traditional IRA. Figuring out which one to get can be very confusing. I discovered some great info on IRAs over at Quick and Dirty Tips with Money Girl. I am going to be sharing snippets from three of Money Girl’s blog posts on IRAs. They in my opinion do a great job explaining the differences and how to choose which one to get.
What is an Individual Retirement Arrangement (IRA)?
Okay, let’s start with the basics. A fundamental concept to understand about an IRA (or any retirement account, for that matter) is that it’s not an investment. An IRA is an account for your investments. Think of it like your house or apartment—it’s a shelter that protects you, but it’s not you. In a similar way, an IRA is also a shelter that protects your investments while they’re owned inside the account.
to read the full article please visit What is the Difference Between a Traditional and Roth IRA? Money Girl shares the benefits to both the ROTH and Traditional IRAs.
The next article on IRAs is
A major factor in the question about whether you should choose a traditional or a Roth IRA depends on what the income tax rates will be in the future and how much money you’ll make during retirement. I know; it’s impossible to predict what’s going to happen with government regulations and your income 10, 20, 30, or 40 years from now—so you simply have to take your best guess about it.
to read the full article please visit Should You Have a Traditional or Roth IRA? Money Girl lists Advantages and Disadvantages for both the Roth and Traditional IRAs.
and finally the article
Where to Get a Roth IRA?
Signing up is easy. I recommend that you use an online mutual fund company or a brokerage firm. As you compare companies, consider these features:
types of investments available
account maintenance fees
fund expense ratios
required minimum balances
personalized service from investment professionals
The beauty of an IRA is that you’re in control and can invest the money in just about anything.
to read the rest of this article please visit: How to Get a Roth IRA?
I found Money Girl’s explanations great. I have had a ROTH IRA with Fidelity Investments for several years now. It is slowly building growth. I encourage you to start an IRA this year for the tax year 2011. You do get to make “deposits” into your IRA till you file taxes in 2012. You just make sure you allocate the money being deposited into your IRA is for the tax year 2011 and not 2012.