Individual Retirement Accounts: Three Ways to Save
You're probably familiar with Individual Retirement Accounts, popularly known as "IRAs." But did you know that recent tax law changes have created three different types of IRAs? Today you can choose from the Traditional IRA, Non-Deductible IRA, or Roth IRA - each of which offers unique benefits and advantages.
Traditional IRA
The granddaddy of them all, a traditional IRA allows individuals under the age of 70-1/2 with earned income to contribute as much as $4,000 of compensation in 2006 and 2007 (the limit rises to
$5,000 in 2008). In addition, taxpayers aged 50 and older can now...
Obama Speaks about The Economic Crisis in the state of the Union
I watched the state of the union speech from Barack Obama last night, and was really curious as to what it might entail, especially with regards to the financial crisis.
The drumbeats of "Bank Nationalization", "Trillions in the Economic Stimulus Package", and tax cuts for 95% of the population, were on the table. In addition he addressed the topic of the frozen credit markets as it relates to the banking system.
Here is an excerpt from his speech about the 2009 Economic Crisis
I want to speak plainly and candidly about this...
As the well known quote from "The Christmas Story" goes, OHHHHHH FUDGE...........
Only Ralphie didn't say "fudge" and we certainly aren't either, especially when it comes to the AIG situation.
As CNBC is reporting tonight, AIG is in talks with the US government over a new bail-out aimed at giving the stricken insurer, which is already 80 per cent-owned by the authorities, fresh capital to absorb an expected fourth-quarter loss and more time to sell assets.
People close to the situation said AIG could announce the new rescue plan as early as next week, together with fourth-quarter results that are...
Workers Concerned as unemployment continues to rise
Go figure.........No good economics news here: The recession is projected to worsen this year.
The country stands to lose a sizable chunk of economic activity in 2009 as consumers at home are concerned that the job losses could continue to spread.
And the U.S. unemployment rate -- now at 7.6 percent, the highest in more than 16 years -- is expected hit a peak of 9 percent this year.
Economists now expect the economy to shrink by 1.9 percent this year, a much deeper contraction than the 0.2 percent dip projected in the fall.
If the new forecast...
My sister and brother in law just had a child. So, instead of heading to eRollover to check out the college funding data, they called me instead about 529 College Savings Plans. After chastising them for not thinking of my website, I briefly explained how it works, and why a 529 Plan is the best route to go these days.
College Education and Expenses are Daunting
The prospect of paying for a college education for yourself or your children is a daunting consideration. Continually rising costs mean people should carefully research grants and scholarships and consider saving money in a tax-free savings...
Rick Santelli goes on a tirade about the recent Mortgage Bailout
Forward this video and post to your friends
Europe goes bonkers over CNBC's Rick Santelli
Rick Santelli's "I am going to tell you exactly how I feel about the mortgage bailout" video clip against the Obama administration's housing bailout quickly spread to Europe, dividing popular opinion clean down the middle and stirred up much political debate.
Many praised Santelli's passion and flair, with so many people feeling that he gave a voice to...
Speculation about possible bank nationalization by the U.S. government is driving down shares in the the banking sector again today. However, there's plenty of uncertainty of what nationalization would actually look like, or if the banks are already nationalized.
Nationalization would give the U.S. government the power to control banks. That power could mean anything from taking control of the public shares to replacing existing management, installing a new board of directors and setting corporate strategy. But the lack of clarity surrounding nationalization has created confusion on what's the best path the federal government should take.
Under TARP, the U.S. government owns...
New Obama Housing Plan attempts to stem Foreclosures
Article body contributed by Reuters, read original here
President Obama unveiled his much-anticipated housing plan Wednesday to fight the real estate crisis, pledging up to $275 billion to help stem a wave of foreclosures sweeping the country.
"All of us are paying a price for this home mortgage crisis. And all of us will pay an even steeper price if we allow this crisis to deepen—a crisis which is unraveling homeownership, the middle class, and the American Dream itself," Obama said in prepared remarks released on Wednesday about his housing plan.
Obama, who on Tuesday...
Your 401k is probably very glad that 2008 has ceased its assault on your retirement portfolio. The year's 401k and IRA account summaries have been rolling in, and they don't look pretty: In 2008, employees, on average, lost 14 percent--or about $10,000--of their retirement savings.
But averages don't tell the whole story. How your retirement account performed during this volatile year is directly correlated to your asset allocation: your portfolio's stock versus bond breakdown. So how did your 401k fare compared with investors, relatively speaking? Here's a look:
By account balance.
Retirement account losses in 2008 disproportionately affected wealthy savers. Those with...
Most investors that I speak with are very aware of the Dow Jones Industrial Average. After all, you can't turn on the tv nowadays without seeing the familiar gyrations of the index listed somewhere on the screen. However, many do not have further insight into the Dow Jones Average, and more importantly, how it works. I have put together a brief explanation, along with a list of the DJIA companies currently included..
The Dow Jones Industrial Average index - (DJIA)
Is a price-weighted average of 30 actively traded blue chip stocks, primarily industrials...
$8,000 Tax Credit | Mortgage Rates Drop | Prices still falling
By Mike Rowan, www.erollover.com
The Real Estate market continues to be a driving force in undermining the economy, as politicians hope and pray the the stimulus package will provide some eventual relief. Here is a rundown of the top news stories in real estate.
First-time buyers get $8,000 tax credit in stimulus bill
Home buyers who hoped for a $15,000 tax credit to buy a new home, as promised by the Senate, will be disappointed. A proposed $35 billion credit to support home sales was jettisoned in favor of a more...
Whether we like it or not, the 2009 Stimulus Package has been accepted by both the Senate and the House, and will be heading our way soon. A coalition of Democrats and some Republicans reached a compromise that trimmed billions in spending from an earlier version of the Senate economic stimulus bill. We are still wondering where the government is going to come up with the money to pay this, but what you see is what you get.
This list, from a Democratic leadership aide, a list of some programs that have been cut, either...
Here is the status of the 2009 Economic Stimulus Package being debated in the Senate and also the $819 billion version of the Stimulus Bill passed in the House of Representatives.
Both are controversial and aim to jump-start an economy that has been in recession since December 2007:
THE SENATE
* The Senate was in its fifth day of debate on Friday of a bill now totaling about $937 billion, not counting government interest payments on the borrowed money. The funds would be spent this way, although major changes are possible:
- $365.6 billion for construction projects,...
The near trillion dollar stimulus bill for the struggling 2009 economy has hit a major roadblock, as more and more Democrats are joining Republicans in their opposition. With the bill up in the air, I wanted to take the time to rant a little bit about the nature of government, and its role in helping the 2009 economic recovery.
Government is really trying the patience of the American people with this bill. Democrats and Republicans alike are feeling the heat. One may wonder, “Why would the...
Things Beginners Need to Know About Their 401k Plans
February 3, 2009
by Mike Rowan, eRollover.com
If your company offers a 401(k) plan, you should take advantage of it. Since their inception in 1981, 401(k) plans have made saving for your retirement particularly easy, provided the company you work for offers such a plan. The idea is that money will be deducted from your weekly salary and put into your own retirement plan. Typically, you'll need to work at the company for a specified amount of time before you'll be allowed to participate.
In addition, there may be a company 401k match,...
February 1, 2009
by Mike Rowan, eRollover.com
Who thought that 2009 would magically erase all of the economic pain of 2008? On Friday, the government reported that the United States Gross Domestic Product (GDP) fell 3.8%, the steepest drop since a 6.4% decline in 1982. The figure easily surpasses the downturns seen during the 1990-91 and 2001 recessions. In addition, many economists said that it is likely that the number would be closer to 5% next quarter as well.
Concurrently, the Obama administration was quick to be seen at the forefront of the continuing 2009 Economic Crisis....
