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Huge Advantages Given By Iras

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Individual retirement accounts, or IRAs, came into existence decades ago because of the steady decline of defined benefit pension plans. People wanted to control how they saved money for retirement and IRAs were just the thing to do so.But not only did IRAs give control to individuals, they also provided some very attractive advantages.



People went for traditional and Roth IRAs more than any other IRAs because of the benefits both types offered. A perfect example of which was tax-free growth. These IRAs earn money and grow, and no taxes are levied on the dividends and capital gains.
It’s also a huge convenience that the contribution deadlines are the same. People with traditional and Roth IRAs can contribute to the IRA for the entire calendar year, up until April 15 of the succeeding year.
Contributions depend on several factors, along with the personal preference of the individual. People should note that after-tax money comprises the account contributions of Roth IRAs, while tr…

Market Downturns: Prepare For The Bear

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Predicting when a bear market would strike is no easy task, compounded by the fact that many market events are rationalized only in hindsight.Today’s knowledge and tools, however, mean that it is possible to make reasonable guesses on the onset of a bear market.  

Many signs can suggest a decrease in consumer confidence.Higher borrowing costs, coupled with weakness in lending stocks, usually signify that investor confidence isn’t what it used to be.Stocks may not lead the rally as often as they did during the aplomb of the bull market.  Image source: Bloomberg.com
Consumer confidence may also wane, which can be a strong indicator of a potential downturn on the horizon. 

Ironically, the very overconfidence of investors could be a sign of a bear market ahead. Avoiding overconfidence could be one of the most important skills any novice investor can learn.   

Even if bear markets cannot be accurately predicted, it pays to be prepared for them anyway. Because the losses of a bear market cannot …