Investments

Basics of Roth IRA

Sep06
2011 Leave a Comment Written by admin
Basics of Roth IRA
© Brooks Elliott

It is important for one to have a nest egg ready for retirement. People are usually confused as to what investment options would add to their retirement funds. One such is the Roth IRA. One may ask, what is a Roth IRA? In simple terms, a Roth IRA is a modified investment retirement account that allows one to set aside income after-tax, upto a specific amount every year. The earnings on the account are tax free and can be withdrawn tax free as well, but only after the age of 59 and a half. Important Roth IRA rules that one should keep in mind are maximum annual income limits as well as maximum contribution limits. Unlike a traditional IRA, one does not get an immediate tax break with a Roth IRA.



Posted in General

Investing for Growth and Momentum

Sep05
2011 Leave a Comment Written by admin
Investing for Growth and Momentum
© Philip Taylor PT

Investing for growth can be a strategy that pays high returns. Focusing on stocks that have strong growth metrics and price momentun has historically returned 26%+ annually since 1988, as measured by Zacks independent research.

This firm publishes industry-leading rankings for growth stocks. Today they are highlighting Mercer International (MERC) as their top aggressive growth stock recommendation. This company is seeing a sharp turnaround in its earnings trends, and at this point its shares are not just a great growth story but trading at a value as well. The company is highlighting MicroStrategy, Inc (MSTR) as a top momentum stock pick. It has recently spiked to a new multi-year high after reporting a 72% Q4 earnings surprise in late January. That has caused analyst estimates for the company to rise significantly, which provides support and momentum for the stock price.

Posted in News

Roth IRA Rules Required Minimum Distributions

Jul31
2011 Leave a Comment Written by admin
Roth IRA Rules Required Minimum Distributions
© Nick Saltmarsh

A "stretch IRA" is not an actual type of IRA account, but refers to a traditional or Roth IRA that includes certain provisions that generally allow the beneficiaries to continue the tax-deferred growth of the funds in the IRA over a longer period of time.

The IRA "stretch" provisions and strategies are largely based on the Roth IRA rules requiring minimum distributions, which can be complicated and confusing. They are not the right solution for everyone, but in general "stretch" provisions are more useful in situations where the IRA's beneficiary can afford to minimize the distributions from an inherited IRA and thus extend the tax-deferred growth of the inherited IRA for their heirs. An IRA or Roth IRA that doesn't have these provisions may be required to distribute the funds in the IRA account more aggressively than the beneficiary needs or desires.

Posted in News
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