What is value of both the traditional IRA and the Roth IRA if you put 5000/year for 40yrs.?
373887
Assuming that both were invested in the same thing....and both earned the same interest rate.....the value of both accounts would be the same...\n\nBut when you start to withdraw funds......as the law stands right now....roth IRA withdrawels would be done tax free......but we dont know what the tax rates will be in 40 years.....they could be 0....so once again......the traditional IRA would win because you got an extra tax cut for 40 years......\n\nOr in 40 years...the govt. may decide to tax your roth IRA.......we dont know what the future holds.....and thats why many people take the tax cut now......bird in the hand is worth etc etc
1153541
1. Put money away in a 401K.   If your company matches it, you can make money on it right away.  Second, it reduces your taxable income (as you are not charged taxes on the money you save), and might put you in a lower tax bracket.  You can save $14,000 annually.\n\nTry $50 a month for starters.\n\nIf your company does not have a 401Kput money into a IRA.  Again, the money you put away is not taxed.  You can save up to $4000 annually.
1110897
K like in the metric system means one thousand.  So if they offer you 18K that's 18,000.   A 401K is a retirement system.
1074203
Ahhh, the million dollar question for Roth accounts...\n\nAnd the answer is - it depends (sorry).  Unfortunately, you need a crystal ball for this one.  Your decision will likely come down to what you believe the future holds.  You need to consider several factors, but you basically have two courses of action to take.  \n\n1)  Take the sure thing - Roll your 401(k) into a traditional IRA and then convert it to a Roth IRA, paying tax upon the principal and earnings at your current income tax bracket.  The conversion option is currently subject to AGI limitations, so check with the IRS or a competent accountant first.\n\n2) Let it Ride - Simply roll your 401(k) into a traditional IRA and enjoy tax-free compounding of interest until you are able to take a qualified distribution (usually at retirement) at which time you will pay taxes on the principal and earnings at your future income tax rate.\n\nSo, look into your crystal ball...\n\nDo you believe that you will be in a higher tax bracket at retirement age than you are right now?  If so, the Roth conversion option may be the right choice for you as you will likely pay less in tax today than you would 35 years from now.  Likewise, if you believe you will be in a lower tax bracket in retirement, it makes more sense to simply roll your account to a traditional IRA, enjoy your tax deferral over the years, and pay the piper upon retirement.\n\nThere are several wild cards to consider in this scenario, not the least of which is the possibility that tax brackets change.  If you want my honest opinion, I think it is naive to assume that the historically low tax brackets we enjoy today will be around in 30 years.  I am also 31 years old and, without getting political, just look at the current landscape of our country and its budget deficits.  The cost of wars, strains on social security from aging baby boomers, etc, leads me to believe that the government is mortgaging our nation's current problems and our generation will likely have to pay for it.  And how will we pay for it?  Higher taxes.  All things being equal, if I were you, I would opt for the Roth conversion.
172085
In a traditional IRA, the money is set aside tax free, but you pay taxes on the funds when you use them once you reach the designated age.  Also, you cannot take any funds from that account before age 59.5 years, or you'll pay stiff penalties. Further, there are strict rules about when you must withdraw and how much you must withdraw when you reach the eligible age.\n\nIn a Roth IRA, the money you set aside is taxable today, but you won't pay taxes years from now, when you need to withdraw the funds.  You can withdraw the funds you contribute (but not the income those funds earn) if you need them, without penalties.  The rules for when you can withdraw and how much you must withdraw are much more flexible than a traditional IRA.\n\nI believe that Roth IRA option is not available to households above a certain income level.
290196
My idea would be to sell out your traditional ira and put the remaining into your roth ira. You should be talking to your financial advisor about all this. He or She should know all this and be able to guide you what to do. if not, time to get a new Financial advisor. But, at least check out this site which I pulled for you while doing my own research. It looks like it nails it on the head of what your asking about. Read it thoroughly and take it in, then talk to your financial advisor and go from there. Hope I was of some help to you. Good luck! Shuuutnstr =o)\nhttp://www.bankrate.com/brm/itax/news/taxguide/20060102e1.asp
128978
If you are looking long term a Roth IRA is a great idea.  The limit is 4000 per year, but before April 15th you can still open one for 2005.  So you can open a Roth IRA with 4K for 2005 and 3,500 for 2006.  As for the investment inside that Roth IRA, you will have to analyze your stomach for risk and your desired return.  If you are new to investing, but can handle some risk an index fund such as the S&P 500 might be a good start.
53875
OK, you CANNOT roll a 401k account directly into a Roth IRA. You can roll your money into a Traditional IRA and avoid any taxation and penalties. (Definetly a good idea.)\n\nYou could then convert your Traditional IRA to a Roth IRA, but in doing this you would have to include the amount you convert as taxable income (pay income tax on the full amount). This may push you into a higher tax bracket, depending on your income and the size of your account.\n\nAssets in a Traditional IRA will be taxed when you withdraw them in retirement while the Roth IRA assets can be withdrawn tax free in retirement. Speak with a financial planner to help decide which choice is best for you.
1080953
Your savings should be placed in safe investments (bonds, certified deposits, or deposits protected against inflation) which will yield about 5%.\nYour yearly expenses being Rs.3,60,000 (12 x Rs30,000), the required amount of savings that would produce this income is:\nRs.3,60,000 x 20 = 72,00,000\n(multiplying by 20 is the same as dividing by 5%).\n\nThis assumes that you have a very very long retirement.\nIf you factor in the number of years you expect to live (you did not specify in your question), the amount above is reduced... however the calculation is more complex.\nAs an example, if you expect your savings to last 25 years after your husband retires, the amount becomes approximately 50 lakhs. Sounds like a lot? one thing you can do is reduce your monthly expenses (in retirement people usually spend less) and save, save, save!
604703
Find a financial advisor you trust (through interviewing them).  They will provide good investment advice.  Both IRA's grow tax deferred (you don't pay earnings along the way).  The differences are that \n\nTraditional ira- tax write off on contributions, taxed fully when withdraw, can't withdraw b4 59.5yrs old w/o 10% irs penalty and taxed on everything\n\nRoth- all contributions are already taxed (can't use it as a write off), by the time you're 59.5 yrs old (and assuming you had the account at least for 5 yrs) everything is tax free.  You are also allowed to take out the principal at anytime w/o penalty.  Some other rules apply to fully withdraw w/o penalty (i.e. 1st home purchase, higher education, etc.)\n\nAgain, if you have little to no investment experience, DO NOT listen to those hot stock tips, Suze Orman, or whatever is on TV.  By the time you hear of those 20% returns, you're already too late (i.e. real estate).  Please, please work with a professional.
12817
It depends on how old you are.  Most retirement plans depend on the economic conditions at the time of retirement.  One person can take their 401k out this year and might get more money then the person taking it out the year after.  See, its all economics.  On top of the economics, its what you invest in.  When you put money in a 401k, you have experts putting it into mutual funds for you.  They take alot from you.  So, theoretically, you can buy your own stocks and make a heck of a lot more.  And instead of investing in them for 45 years, you can invest for 8 years and make the same amount or more.  This is true, however, you dont know what to invest in.  So, I suggest you start small and on something a bit more safe.  I will show you 2 or 3 of the best ways to do this.  I am a rare coin expert.  These ways are not fool proof because the economy goes up and down in a cycle of booms and busts.  But, they do cut out the risk because you only have 10 years left.  \nThe first method is through gold.  I suggest you buy the physical form and not stocks or anything of that nature.  You can buy the physical form and allow the sellers to store it for you.  Do not allow them to store it for you if they are just a small company.  I would rather take the physical gold with me.  There is a fee to take this gold with you though.  But, its better then not having it.  With gold, its always hovering at about $278 to about $315.  I would say that anything less then $290 is a good buy.  When you buy, they always tack on an additional couple of dollars because the gold was assayed into a gold bar for you.  When gold is high, they add like $4.  When it is low, they might add $7 dollars.  Dont worry about this.  Just pay for it.  I would rather buy bullion coins then the gold bars in the packages.  They cost $10 dollars above the gold value in the bar form.  Now, there are certain gold bullion coins that you should and shouldnt buy.  Its always best to go for the pure gold ones.  The reason being is, sometimes a jewelry store will take it in, but they will only pay for its content because they were going to melt it anyways.  And if it wasnt pure 24k, then they might have to take a couple dollars off to turn it into 18k or 14k, etc etc.  So, the purest ones are the Canadian gold coins, and the Chinese gold coins.  When gold goes down, you buy, when they go up, you sell.  Its that simple.  You cant lose because gold goes up and down all the time.  So, dont sell if you lose.  Just keep it there.  Whats the point of saving if you are going to dip into it?  So, over the course of 10 years, I know you can make a sizeable profit.  The question is large or small because you will not know when to buy and sell.  All you see is a profit when you sell, and you see a cheap price when you buy.  What you do is buy when its around $290 or less.  Sell, when it goes up.  And with the excess, you can buy more gold.  Just continue doing this.  I know for a fact that you can start off with $3000 dollars today and make at least 20 trades in the next 10 years and make no less then 100% of your investment back.  Gold is currently at $500 plus.  What if you bought it when it was $290 or less, which is what is preferred.  Thats over 200 per ounce.  So, in a year or two, do you see that you would have had over 5k?  You just have to wait till it goes down to around the 300 mark.  I mean, even if you buy for 290, and it goes up to 310 in 2 weeks, you can still sell and make 300 dollars.  That would add almost another ounce to your portfolio.  Continue to do this until you are about to retire.  During the last year, you will be waiting for the highest price you can find to sell.  Another thing to look into is instead of gold coins, you can buy grain gold.  They are just little balls of pure gold.  They are usually a couple dollars cheaper, but they are hard to obtain sometimes.  \nSecond way of investing is buying coins from the US mint.  They will be the cheapest price you pa
735323
If your only contribution to the traditional IRA is the rollover, then you may still be able to contribute up to $4000 ($4,500 if you are over age 50) to either the same traditional IRA or to a Roth IRA, depending on which one best fits you. \nThere are other factors involved here, such as whether or not you still contribute to your employer's retirement plan and how much you make. I'd be happy to do the calculations for you if you'll give me those numbers. But I understand that is sensitive information, so I will send you the link to the form you use to figure allowable contributions. \nRollovers are not considered contributions because they are in the same type of tax-advantaged plan. You would only have to be concerned if you put more into the IRA than you had in the 401K, or, conversely, if you spent some of the money and didn't out it all in (you might be liable for tax and penalties in that case). \nLet me know if I can be of further assistance :)
78911
If it was compounded annually:\nToday - $5,397.31\n6 Years ago - $3,401.22\n\nSee the link below to calculte using other options.
371903
The upside of a traditional IRA is that you can deduct contributions you make to it from your taxable income.  However, if you have a 403(b) plan at work then you cannot deduct contributions to a traditional IRA.  You are much better of contributing to a Roth IRA.  A Roth IRA is never tax deductible.  In other words when you fund it, you do so with your own cash that has already been taxed.  However, unlike a regular/traditional IRA, the growth from a Roth IRA is tax free.  This makes it a better bet for a young person like you.
358558
The return on a Roth IRA depends upon the return of the investments that you've placed inside it.  You put investments in a Roth IRA in order to save for retirement and to avoid taxes.\n\nMost Roth IRA's are invested in mutual funds, and typical returns on these average 9 to 11% in the long run.  You can also use Roth IRA funds to invest in real estate, stocks, bonds, and small businesses.  You are not allowed to invest in collectibles such as art, coins (except gold), or stamps.\n\nA Roth IRA is a very good place to put your money for the tax savings it generates.  If you held the same investment and didn't put it into a Roth IRA, then the government would take 15% of your profits.
539106
I actually do finance and asset management for families.  If you were to retire TODAY... 1 million dollars at a modest 5% return would pay you $50,000 a year.  MOST could live pretty well off of that.  Depending on your age, you might need to save a little more just to battle inflation.  (essentially   $50,000 a year will not be worth as much each year)  And, if you do not own your home, this has to be taken into consideration as well.  I just read an article that predicts in the next 20-30 years their will be significant advancements in medicine allowing us to live well into our hundreds!  So be sure your prepared to go the distance!
1065039
I think it sort of depends.  I have a $40,000 2nd morgage that was adjustable at 8.75%.  This interest rate has been rising over the last year or so and may be continue to rise.  The question that I asked is whether I can make 8.75% on the money that I put into my Roth ira.  If you a stock wiz and know you will make more then 8.75% on the money in roth I would put the money in the roth.  For me I felt that a 8.75% return was guaranteed and safe (I am sort of moderate risk category)  by paying down my 2nd mortage.  \n\nYes I am not taking in account the tax advantage of 1)mortgage tax deduction and 2)tax free on capital gains on my roth.\n\nI like the idea of taking my money, paying down my 2nd mortgage and saving 8.75%.