Archives for General
Why Your Kids Need a Roth IRA
Making modest contributions during a child's teenage years can add up to a good amount by retirement. It's also tax smart. Working at a tender age is an American tradition. I'm sure lots of kids did just that over the summer, and some are still be doing it after school and over the weekends. What isn't so traditional is the notion of kids contributing to their own Roth IRAs. It should be a tradition, because it's such a good idea. Here's the scoop. Roth Contribution Basics All that's required to make a Roth contribution is having some earned income for…
Protecting Your Virtual Estate
What happens to all of your e-mail and other digital assets when you die? Financial pros say not knowing can be costly. By TANIA KARAS When Missouri estates and trusts lawyer Robert Kirkland was preparing a will for a client several years ago, it never occurred to him to include any provisions about electronic bank statements or e-file tax services, both of which were then relatively new. The result of that omission became clear only last year, when the client died unexpectedly -- and his wife had no way to access their joint online bank accounts and the other key…
Pop Quiz: What Qualifies as a 529 Expense?
Not all college costs get the tax-free treatment. It pays to know the rules beforehand. By ANNAMARIA ANDRIOTIS Millions of parents invest in 529 plans to pay for their children's college educations. But when it comes time to pull the money out, be aware that not all the expenses Junior incurs on campus will qualify for the tax-free treatment that makes these state-sponsored college-savings plans so valuable. Are These Qualified 529-Plan Expenses? Not all college-related costs qualify for tax-free withdrawals under 529 rules. Take our quiz to see if you know which ones qualify. Withdrawals from 529 plans are tax-free…
Why Target Date Funds Could Miss the Bull’s Eye
A study casts doubt on the "glidepath" that moves older investors from stocks to bonds. Some years ago, the money-management industry tried to engineer a single investment solution that could be applied to "everybody" on Main Street and came up with the idea of the "target date" mutual fund. These funds come under a variety of different names, but at heart they operate the same way. A target-date fund is a one-decision mutual fund that you can invest in over the course of your entire career. Each fund is designed for those aiming to retire at a certain date. The…
401(k)s flagged in NFL’s referee debacle
Taking blame for blown calls on pivotal plays represents new low By Ian Salisbury The advent of the 401(k) plan gets blamed for much of the financial woe facing baby boomers as they approach retirement. But until this week, the savings plans had never been held responsible for the outcome of a football game. As a pair of replacement referees infamously differ in their rulings on the Monday night game’s final play, receiver Golden Tate of the Seattle Seahawks tussles for ball control with Green Bay Packers defensive back M.D. Jennings. Behind the National Football League’s lockout of its referees…