Traditional and Roth IRA’s

Traditional and Roth IRA’s The theories discussed stem from The Truth About Retirement Plans and IRAs by Ric Edelman Individual Retirement Accounts (IRAs) This article will highlight two individual retirement vehicles, the Traditional and Roth IRA. Both accounts are offered by the Federal government as means to help lower and middle class individuals better prepare for their future. Annual contribution limits are set by the IRS. Surprising annual contribution limits is around a 10% year tax penalty administered by the IRS until the excess is removed Check the Internal Revenue Service website or consult a professional if your are unsure of personal finance strategies.  

Mortgages for the Holistic Investor

Key Terms Amortization: is the crossover from paying a higher percentage of monthly payments for interest to a higher percentage of monthly payments going to the principal*. Mortgage: debt backed by real estate as collateral Mortgages = bad debt? Traditional wisdom dictates debt is bad, and we should get rid of it as quickly as possible. However when understood and structured correctly certain forms of debt can become asset-like. The following will rationalize why a long, expensive mortgage can be a sound financial decision. Although it is not justification to purchase a home out of your price range. First let’s clarify if you would like to avoid bank loans and interest payments altogether, paying the entire value of a home in cash is the ideal option. In reality not many individuals can afford such a luxury and a bank loan is the natural alternative.