Yet again the dark cloud of the European debt crisis is in the news and hanging over the world markets. We want to ask......
Loading ...We would love to hear your comments on the subject.
Every Success,
The MarketClub Team
By Terry Coxon, Casey Research
It's clear to me, even though it may not be clear to you, that unless there is something very unusual about your situation, if you have a traditional IRA, you should pay the tax now and convert it to a Roth IRA. Not just maybe, but definitely. Not just for a small advantage but for a big one. If you don't convert today, you'll ultimately surrender much more to the tax collector. You'll be throwing money away. And you'll keep throwing it away. It's a result neither of us wants.
Your IRA is an object in motion, with money going in and out of it and investments turning over inside of it. It lives not just on your brokerage statement but across the years of your calendar as well. That's why the Roth conversion question can seem so tangled. Because of the time dimension, deciding whether to convert isn't as simple as deciding whether to replace one stock with another. But there is, as I'll try to show, a way to look at the question that cuts through the complexity.
Comparisons
With a traditional IRA, you are allowed to contribute $5,000 per year of employment income (or $6,000 if you are 51 or older), and, if your income isn't too high, you receive a tax deduction for the contribution. Earnings inside the IRA accumulate and compound free of current tax. Later, when you withdraw the money, it comes to you as taxable income (except to the extent of any contributions that weren't tax deductible when made, which come out tax free).
With a Roth IRA, if your income isn't too high, you may contribute up to the same $5,000 or $6,000 per year, but none of it is tax deductible. Just as with a traditional IRA, earnings inside the Roth accumulate and compound free of current tax. When the money comes out, assuming you are at least 59.5 years old and the IRA is at least five years old, the money goes tax free straight to your pocket.
Whether traditional or Roth, any IRA's power to make you richer comes from tax-deferred compounding. Consider a simple example that compares an ordinary, taxable savings account with a traditional IRA. Assume, for the sake of simplicity, that: Continue reading "Doing the Roth Arithmetic"
In the not-so-distant past arguing that precious metals prices were setup to fall generally elicited a response which was not real pleasant. In fact, during gold’s infamous bull market rally on several occasions I called for pullbacks which regardless of the accuracy of my call generated hate mail that seemingly never ended.
Fast forward to the present and hardcore gold bugs remain transfixed on the idea that precious metals must rise. The gold bull market has ended, at least for now and those still holding the bag are looking at large losses from the all time highs set back in 2011.
These same gold bugs will cite a litany of reasons why gold should be moving higher from the unprecedented printing of money by global central banks to the deficit spending and eventual fiscal day of reckoning facing most Western nations. I do not disagree with the gold bugs that in the long run gold prices will rally above the all time highs, but in the short to intermediate term there are several forces which have the potential to drive gold prices lower. Continue reading "Gold Prices Are Set for Further Decline"
Your eyes aren't playing tricks on you, the INO Trader's Blog has a new look! It's the same great blog, but with a make-over.
Don't worry, you'll still see Adam Hewison's analysis, hot news stories, important market happenings, and the same great educational content but... you'll also find more articles, strategies, and analysis from new outside authors. You'll see more articles from multiple stocks, futures, forex, ETF, and precious metals experts.
So, why the change? We wanted to give members of MarketClub their own exclusive area to chat with each other, share trading strategies and techniques, and alerts fellow members of new Trade Triangle signals. Learn about the MarketClub trial and access to the members only blog here.
So, enjoy the added content and please share your thoughts on what you would like to see more of.
Thanks,
The INO Trader's Blog Team
The Easter holiday weekend is upon us and my schedule is busy with chores, sports and family. Schools here in Maryland are wrapping up spring break and soon my family will be back to the non stop grind of work, school and practices. It's nice to have a holiday weekend to try and relax (as much as we can). With that I wanted to ask our readers...
Loading ...As always I would love to hear your plans so leave a comment below.
Have a safe and hoppy Easter weekend,
Jeremy
You are now leaving a Magnifi Communities’ website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.
Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.
