Retirement

Investing in Bonds

Have you ever thought of making some extra money with the money that you already have? If it could take no work at all and the interest rate on your money is insane. You really can earn money for simply investing and it will be easy and is a great option for anyone. Chaussures Nike Pas Cher The most common bought bond and the one you will most likely want to purchase are individual bonds. Individual bonds are usually sold in $5,000 dollar parts and they are considered OTC bonds. OTC simply means over-the-counter. You don’t have to get anything special to buy these bonds except the initial cash investment. Bonds are not quoted at the $5,000 ratio, most are quoted as if they were sold in $100 increments. They are rated based upon this. Soldes Asics 2017 According to the ratings if your bond was quoted at 98 it would be $98 per $100. Nike Air Max 2017 Heren groen In the $5,000 bond this means you payed $4,900 for your bond or 2% less than it is worth for selling. Now this is a good thing because you can essentially buy bonds for a cheap price and wait a while to sell them for a profit. Bonds are not a short term money maker, they require quite a bit of long term investment and good choices. NBA Canotte 2017 You always want to try and buy bonds in an area that you feel knowledgeable and comfortable. This greatly increases your chances of knowing what you are investing in and making some money off of your bond. Andre Ethier Jersey Next, there are some bonds that are called bond funds. This is essentially the same as a stock fund in that a professional manages a bond fund for you and gives advice on things such as reinvesting bond interest and where to place your next bond. Bond funds are initially a service provided to you so they do require a management fee. Tennis Nike France This fee can be either an initials start up fee or a periodical management fee. When investing this fee should come into account as it will lower the overall money you are making from your bonds. In some cases however this professional advice is worth the amount out of bond profit. Maglie San Antonio Spurs Options like the bond funds are great for beginning bond investors who are still assessing the market and aren’t very experienced with investing in bonds for a profit. Fjallraven Kanken Kinderen Thirdly there are market bonds. sac à dos fjallraven kanken pas cher These are the quick cash bonds that are high risk. sac lancel pas cher They require an initial investment of anywhere from $1,000 to $10,000 on fast moving bonds. The investor can withdraw at any time and these usually offer the highest profit per time period. Lastly there are Bond unit investment trusts. These are by far the most stable bonds as the investor knows exactly how much they will make because the portfolio of bond profit is a constant rate.

Starting a Roth IRA

A Roth IRA is a tax- deductible fund that was introduced by Senator William Roth of Delaware in 1997, as part of the Taxpayer Relief Act. Putting one’s money into a fund of this type can be a very profitable way of investing for retirement. Absolutely anything can be invested in such a retirement fund, and all of the money so invested may be withdrawn at any time free of tax. Opening a Roth IRA is likewise a very simple and easy process: The customer simply goes to the bank and ask for the forms he or she needs to fill out. Having done so, he then returns the forms to the bank and deposits money into the newly- opened Roth IRA account, by one of three ways: a check, cash, or a transfer from one’s savings account.

Constant fund monitoring is crucial. It is also possible to open a Roth IRA with an online brokerage. Fidelity Investments is an example of such a company. Registering for an account in this way is even simpler, requiring the customer to give some personal information. Once the applicant has given this information, he can deposit money into his new account. The funds in the account can then be invested in almost anything, including mutual funds, stocks, and bonds.

Tax refund money should be invested in one’s Roth IRA. There is a limit on the amount that can be invested in the account each year, depending on one’s age (those over 50 can pay an additional “catch up” contribution). This maximum changes each year, and so it is important to check this upon starting the account. How much one can invest also depends on one’s tax- filing status, that is, whether the holder is (1) single; (2) married, filing separately; or (3) married, filing jointly. Contributions can never be made with investments; they can only be made with cold, hard cash. And over the age of 70 1/2, there is no minimum to how much can be deposited in the account.

For anyone far- sighted enough to think about planning for the future, opening and investing in a Roth IRA can be a secure, intelligent path to take.

What is a 401k?

What is a 401k

By – Richard Adams A 401K is a savings plans that is offered to employees by employers as a means of encouraging investing for the future and retirement. Maglia Kevin Durant Asics Gel lyte 5 Dames nike blazer pas cher Nike Air Max 2016 Heren grijs Adidas NMD Dames beige nike goedkoop online nike tn 2017 homme nike air max 90 femme pas cher Adidas Ultra Boost Dames air max 1 femme Fjallraven Kanken Kids UK nike air max 2017 dames Blauw Scarpe Jordan Basket nike air max goedkoop Adam Wainwright Jersey Kanken 7L nike air max 2017 heren Abercrombie Pas Cher nike tn requin pas cher nike air max pas cher kyrie 2 pas cher They differ from an Individual Retirement Plan (IRA) in that they are only offered through the workplace and both the employer and the employee can make contributions toward them. Nike Air Max 2016 Dames roze chaussures gel lyte 5 lancel pas cher Maglie Houston Rockets fjallraven kanken outlet Nike Nettbutikk Vêtements Adidas Pas Cher Pas Cher Hollister Soldes Cheap Nike Air Max Trainers 2017 Maglie Philadelphia 76ers Adrian Gonzalez Jersey nike air max 2017 dames Rood nike tn noir femme Maglia LeBron James goedkoop nike air max 2016 Fjallraven Kanken Classic Adidas Yeezy 350 Heren nike air max 2017 dames Roze Pat Tillman Jerseys Air Jordan 5 Goedkoop Air Max 2016 Schoenen Nike Air Max 2017 Dames groen adidas 2017 pas cher A 401K is a great investment opportunity, especially for people who are starting young and may have several hundred thousand dollars available to them when they retire. Nike Air Max 2016 Heren wit Nike Air Max 2017 Heren Chaussures Nike Maglia David Robinson Goedkope Nike Air Max 2017 Heren Denver Nuggets Scarpe Adidas NMD Runner Fjallraven Kanken Mini Troy Polamalu College Jerseys Nike Air Max 2017 Heren zwart nike air max 2016 goedkoop A.J. Green UGA Jersey Maglie Los Angeles Clippers Adidas Femme Fjallraven Kanken Mini nike pas cher nike air max 2017 goedkoop Nike Air Max 2016 Dames blauw Adidas Schoenen Verkoop Baskets asics pas cher Goedkoop Nike Air Max 2016 If you are at least 21 years old and are employed by a company that offers a 401K, you would be wise to take advantage of the opportunity. fjallraven kanken goedkoop nike air max Robert Griffin III Baylor Jerseys nike air max 2016 goedkoop Solde Adidas fjallraven kanken rugzakken Nike Air Max Homme St. Louis Cardinals Store Women Air Jordan 6 Adidas Running Air Max 2016 Goedkoop Nike Pas Cher Fjallraven Kanken Pas Cher Air Jordan 13 (XIII) new balance homme 574 pas cher Air Max 2017 Dames wit New Balance Pas Chers new balance 577 femme Maglia Michael Jordan Michael Wacha Jersey Fjallraven Kanken Sale Classic goedkope Nike Air Max 90 Nike Heren Employer Matches Most employers offer an even greater incentive for employees to save by providing matching funds up to a certain percentage of the employee’s contribution. sac fjallraven kanken pas cher nike air max pas cher Maglie NBA a Poco Prezzo Nike Heren Cheap Fjallraven Kanken Bags Nike Air Max 2017 Heren groen nike air max schoenen Nike Scarpe Italia nike air max nettbutikk Air Jordan 11 (XI) Nike Air Max 2016 Dames Wit asics homme pas cher Scarpe Nike Store Marcus Mariota Oregon Jerseys Nike Air Foamposite Donna goedkoop nike air max 2016 Nike Air Max 2016 Dames Roze For example, if you have five percent of your paycheck withheld every two weeks for your 401K, your employer may choose to donate half that amount, or 2.5 percent, into your account. Mochilas Kanken No.2 goedkoop schoenen adidas ray ban femme pas cher Adidas Nmd Pk Runner nike pas cher Clayton Kershaw Jersey Nike Air Max Sko nike air max vente air max 90 pas cher Fjällräven Kånken Barn Goedkoop Nike Air Max nike tn homme Matthew Stafford Jerseys Nike Air Max 2017 Dames Maglia Grant Hill mochilas kanken baratas Adidas Yeezy Boost 350 Cheap Nike Air Max Trainers UK nike air max goedkoop nike air max 90 soldes Asics GT 2160 Asics Heren In order to be eligible to keep the employer contributions, you usually need to stay with them for a set amount of time to be vested. Nike Air Max 2016 Dames Zwart Nike Air Max Thea Dames Chaussures Asics Pas Cher nike air max tn pas cher nike air max 1 pas cher Adidas Superstar Heren grijs Nike Air Max 90 Pas Cher Pour Homme Air Jordan Uomo 9 Mochilas Kanken Big new balance 373 femme noir nike air max pas cher fjallraven kanken sale uk Authentic UGA Jersey Chaussure Asics Gel Noosa Tri 11 Air Jordan 7 Chaussures Nike Nike Air Max 2017 Femme Nike Air Max 2017 Heren wit Nike Air Max 2017 Heren rood nike air max norge nettbutikk chaussures de foot new balance air max pas cher pour femme Your vesting increases by the number of years you have worked for your employer, and after a set number of years, you are fully vested and are able to keep all money that your employer contributed to your 401K. baskets noires Asics Lyte Jogger Chaussures Asics Pas Cher nike air max 2016 zwart Chaussures Under Armour Pas Cher Nike kyrie 2 Maglie Atlanta Hawks A.J. McCarron Alabama Football Jerseys J.J. Watt Jerseys Yadier Molina Jersey Russell Wilson College Jerseys Asics Pas Cher nike tn Tom Brady Michigan Jerseys Nike Store Italia Maglie Portland Trail Blazers Scarpe Jordan Basket soldes air max 1 kanken baratas Fjallraven Kanken Occasion Andrew Luck Stanford Football Jerseys Tax Benefits The amount of money you contribute to your 401K is done on a pre-tax basis, meaning you pay no tax on it until you make a withdrawal at retirement. Fjallraven Kanken Classic Air Jordan 7 Donna Goedkope Nike Air Max 90 Adidas Yeezy 350 Dames Marcus Mariota Oregon Jerseys Nike Air Max 2016 Dames air max 90 pas cher asics femme Miami Heat Chaussures Asics Homme Nike Italia Matt Cain Jersey Abercrombie Pas Cher nike air max 2016 goedkope Chaussure Asics Gel Noosa Tri 11 Fjällräven Kånken Väska Adidas Dames Mochilas Kanken No.2 Chaussures Nike 2017 Fjallraven Kanken Kinderen Javier Baez Authentic Jersey Cam Newton Auburn Football Jerseys Nike Air Max 2017 Heren grijs Your 401K contribution for the year will show on your annual W2 statement, but you are not required to report it to the IRS. air max pas cher Nike Air Max 2017 Dames blauw NMD Adidas Dames beige Goedkoop Nike Air Max 2017 Goedkoop Adidas Superstar nike air max 2017 goedkoop Jordan 13 Sale chaussures de foot puma Adidas Pas Cher Nike Air Lebron 13 Ep Chaussure Asics Pas Cher Nike Air Max 2016 Dames Groen nike air max 90 pas cher soldes air max 1 nike air max Fjallraven Kanken 20L Kånken Laptop 15 goedkope nike air max schoenen Nike Air Max 2016 Dames Groen Nick Marshall Auburn Football Jerseys Air Jordan 13 (XIII) Maglia Shaquille O’Neal Chaussures Nike Pas Cher Cleveland Cavaliers Early Withdrawal Penalties If your company allows you to borrow against your 401K before retirement, the amount you borrow will be subject to both a penalty and taxation. Women Air Jordan 4 Nike Air Max 2017 Heren Todd Gurley Georgia Football Jerseys Nike Air Max 2017 Goedkoop La chaussure de running Asics Goedkoop Air Max 2016 Schoenen Mochilas Kanken No.2 kyrie 1 pas cher nike femme Maglie Atlanta Hawks Air Max 2017 Dames zwart Air Jordan For Sale Mochilas Kanken Baratas Baskets Under Armour Pas Cher Nike Air Max 2017 Dames groen nike air max 95 pas cher Nike Kyrie Irving nike air max chaussure fjallraven kanken mini (enfants) 7 L nike air max nettbutikk Nike Air Max 2017 Dames groen Fjallraven Kanken 16L Cheap Fjallraven Kanken Big Maglia James Harden Read more at: Smartmoney 401(k) Center – 401(k) information center with various articles and tips and advice.

What is a Target Date Fund?

There are a ton of investment vehicles on the market, most mutual fund companies now offer what is called a “Target Dated Fund”. Investors looking for a fund where they can invest for retirement and don’t have to worry about asset allocation will find target dated funds a perfect fit.
Target Date Funds
Target dated funds are mutual funds that are actively managed with a long term goal in mind. For example: The investor has a retirement date in mind, lets say 20 years from now. All they have to do is find a mutual fund with a target date that fits their criteria, make the investment into the fund and that’s it.

When Should You Use These Types Of Funds?

Investing in these types of mutual funds are for people who want to invest and forget. Lets use the example above: An investor has a retirement date which is 20 years from now. The risk profile for a person this far from retirement is still in the high risk category. This means the mutual fund manger will allocate the assets of this fund in investments that focus on higher capital returns, not capital preservation.

So, the fund will be invested more in stocks and less in bonds. The goal, since there is a long time frame for the investment, is to be aggressive, accumulate more capital. Then, as the fund matures the fund manager will make shifts in the asset allocation moving toward a more conservative mix of stocks and bonds.

Ultimately, as the fund closes in on the target date the asset allocation will be mostly in investments focused on capital preservation. So, for the investor who has a long term time frame for retirement and wants a passive investment, this can be the perfect investment vehicle.

Pros

Mutual funds are always diversified, this investment is no different. Target dated funds are generally comprised of a mixture of other funds. So, this means you have diversification within diversification, this lowers the investors downside risk.

The other advantage, which was already touched on, is an investment where the investor is pretty much hands off. The mutual fund manager is navigating the asset allocation in these funds. The investor is only choosing the target date, that’s all.

Cons

The downside of these target dated funds are fees. Since these funds are actively managed the fees can be much higher compared to other mutual funds. The other term that designates fees in a mutual fund is call “expense ratio”.

The last thing that can be a negative factor with these types of funds is the investments themselves. As mentioned, the fund manger chooses the blend of investments in the fund. Some target dated funds only invest within their own fund family. For example: A fidelity targeted fund will only invest in other fidelity mutual funds (this is only an example, fidelity may not do this,) in this case the investor can lose some of the safety factors that come with diversifying among a variety of mutual fund companies.

Overall, target dated funds can be the perfect investment vehicle for someone with a long term investment timeline who doesn’t want to worry about market fluctuations.