A traditional IRA and a Roth IRA have many similarities with the biggest difference being how they are taxed. Both a traditional and Roth IRA are retirement savings accounts that allow an annual contribution, up to federal limits, that grows and can be withdrawn once you reach 59.5 years of age.
Why should my tax advisor be the same person as my financial advisor? These two professions are closer than you might imagine.
There are many terms and concepts that are brought up but not explained in the news, so today I will try to shed some light on what the terms mean and the ultimate connections between them.
For some, planning is getting up in the morning and if it is a good day in the market, they think "Awe! Retire at 70!" Or, if it's a bad day, they think "I will be working till I die." This is NOT planning, this is stumbling through life.
When markets get volatile, there are several things you can do to remove some of the anxiety. Do nothing. Ignore the news and just ride the roller coaster. Sell everything and put the money in a CD. Follow your plan.
Are you in your mid-fifties or older? Do you find yourself feeling worried or losing sleep over thinking about your retirement funds?