Sep 17

Roth vs Trad 401(k)

There are two kinds of employer sponsored defined contribution retirement accounts: the Roth and traditional 401(k). These two options are analogous to the Roth and Traditional IRA accounts:

With a Roth 401(k), taxes are paid on the contribution, and withdrawals in retirement are tax free.
With a traditional 401(k), contributions are not taxed, but withdrawals in retirement [...]


Sep 9

Guaranteed Returns

This week I am writing about conversations I had with my extended family about finances. Today, I turn to a conversation with my father.

Since my father retired and rolled over his 401(k), my parents were considering hiring a financial advisor. Fidelity offered an advisor for 1% of assets under management. This 1% would be in [...]


Sep 8

Retirement benefits for teachers

After I gave copies of On My Own Two Feet to some of my cousins, my extended family had a conversation about money and finances.
On one side of my extended family, all of the women out of college (except me) are either contributing to or receiving income from a teacher retirement fund. All of [...]


Sep 1

Follow the news?

I recently had a conversation with a friend about reading financial news. She said it was not worth reading the news; she has an investment plan and sticks to her target asset allocation.
Generally, I agree that it is a waste of most people’s time to follow financial news on a daily basis. There are several [...]


Aug 18

Reader Question: Individual Retirement Accounts

A reader wrote in requesting information about Roth IRAs. If you would like to read about something, let me know in the comments or on the contact form.
An Individual Retirement Account is an account that you set up on your own (as opposed to through your employer), and you are the only owner of it [...]