Barry Bulakites Blogs

Roth and traditional IRAs share a lot of similarities, with the fundamental difference between the two involving the payment of taxes.  Image source:   mymcmedia.org In a traditional IRA, individuals take their contributions out of their pretax income and the investment grows with the incurred taxes deferred until money has been withdrawn.  On the other hand, Roth IRA, which was named after former Senator William Roth who authored the Taxpayer Relief Act of 1997, is funded after an individual’s salary has been taxed. Contributions are not tax deductible and qualified distributions when withdrawing from the account is tax free.  Because of this difference in tax treatment, contributors would have to consider carefully which account to use.  The tax rate is shifting continually. If they believe that the rate would be higher than it is now, they should consider opting for a Roth IRA because future withdrawals are tax free and they would not have not deal with hi

Some employees nearing the age of retirement start to really think about the future. The first thing that comes to mind is what to do after retiring. A close second is if they have the means to do what they want to do. Image source: madailylife.com Retirement should be prepared for. In the past, retirees could depend on 401ks as their employers offered retirement benefits that could hold them until old age. However, with the inflation rate of the past decades and increase in taxes, it seems that retirees would hardly survive on a 401k. It’s a good thing there are alternative investments. For this article, we’ll focus on index and municipal bonds and their key differences. Index funds are quite popular among investors. They have amazing tax advantages and don’t require that huge a capital compare to other alternative investments. Index funds also allow investors to incorporate a buy-and-hold strategy, which makes them safer than most. They also have a