Remember that huge government spending package that Congress passed in 2009 to save us all from economic armageddon? While some argue that the government spending in this program prevented the United States from entering another Great Depression, the nation’s economy remains mired in a painfully slow recovery. And we are not out of the woods yet. Among other things, the country was promised that the stimulus would prevent unemployment from exceeding 8%. How’s that working out for us? Continue Reading »
Posted in Economy, Taxes, Uncategorized | Leave a Comment »
Due to unprecedented spending by members of both political parties over the past decade, the U.S. government’s debt has now grown to approximately $13 trillion. That number is only expected to increase over the next ten years as the government produces massive annual budget deficits (a fancy word which means the government is spending more money than it is bringing on a yearly basis). So what does this mean to you and me? Continue Reading »
Posted in Debt, Taxes | Leave a Comment »
It’s time for confession.
You have one of those old, traditional IRA’s lying around somewhere, don’t you? You haven’t paid much attention to it. There’s probably a year’s worth of unopened account statements sitting on your desk under a pile of other unimportant mail, right? Sure, the balance of the account is nothing to brag about, but your sins likely include an inappropriate asset allocation as well. Highly conservative money market fund, anyone?
Your poor neglected IRA needs some new life. It could use some old-time religion. Heck, your IRA may actually be in need of a good old-fashioned conversion. A Roth conversion, hallelujah! Continue Reading »
Posted in Retirement Account, Roth | Tagged Investing, IRA, Roth | Leave a Comment »
Government debt. It’s not a Republican problem and it’s not a Democratic problem. It’s an American problem. And there’s plenty of blame to go around. According to USDebtClock.org, America’s current U.S. debt is approximately $12 trillion. That’s the equivalent of over $39,000 per citizen (every man, woman, and child) and nearly $111,000 per taxpayer.
With the recent government stimulus programs and bailouts, however, the country’s debt load is expected to increase by more than $9 trillion over the next decade Continue Reading »
Posted in Debt, Economy | Tagged America, Debt, Economy | Leave a Comment »
Are you thinking of taking a loan from your IRA? Think again. Although most people consider their IRA account just another retirement account like their 401(k), the IRS does not permit you to take a loan from an IRA. If, somehow, you figure out a way to take a loan from your IRA account Continue Reading »
Posted in Debt, Retirement Account | Tagged 401k, 403b, Debt, IRA, Loan | Leave a Comment »
Repayment of a retirement plan loan must, in most cases, be repaid in full within 5 years and must be paid in substantially equal payments representing principal and interest at least quarterly. Most plans, however, require you to make monthly payments. The only exception that the IRS makes for loan repayment duration is Continue Reading »
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Is it a good idea to take a loan from your 401(k)? In my opinion, it is usually not an ideal source from which to borrow money. Some will argue that a retirement plan loan is one of the best kinds of loans because with a retirement plan loan, your repayments are actually paying yourself interest instead of a bank or other lender. While this is true, the retirement loan itself is a bit of a gamble. Continue Reading »
Posted in Debt, Retirement Account | Tagged 401k, 403b, Debt, Loan | 1 Comment »
Retirement plans such as 401(k) and 403(b) plans are not required to offer loans to their participants, so check with your employer’s HR department or with your retirement plan provider to see if you are eligible to take a loan from your retirement account. If a retirement plan does offer loans, it is up to the plan to provide a limit on the amount that can be borrowed. Continue Reading »
Posted in Debt, Retirement Account | Tagged 401k, 403b, Debt, Loan | Leave a Comment »
Reporter Robert Krulwich of ABC News takes an insightful and easy-to-understand look at China’s “ownership” of U.S. debt and why the country is hesitant to collect on that debt.
Posted in Debt, Economy | Tagged America, China, Debt, Economy | 1 Comment »
As mentioned in related posts, there are certain hurdles that you must clear in order for your Roth distributions to be considered “qualified”, and thus tax-free, by the IRS. These rules are a bit different for Roth IRA accounts than for Roth 401k and Roth 403b accounts. Continue Reading »
Posted in Roth | Tagged 401k, 403b, Investing, IRA, Roth, Stock Market | 2 Comments »
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