Roth IRA secrets - 7 reasons why a Roth IRA trumps a Traditional IRA
TAX-FREE COMPOUNDINGContributions inside a Roth IRA can grow and compound each year in your investment portfolio on a tax-free basis. This cannot be said for investments within a 401k plan or traditional IRA, which only experience tax-deferred growth compounding. At some point in time the investments held within 401k and IRA plans will have to pay the tax man.TAX-FREE EARNINGSAccumulated wealth inside a Roth IRA is 100% tax-free and will not be taxed at the time of withdrawal. The power of this benefit is truly realized when there are significant capital gains within the portfolio, or in investments with longer time horizons (which allows greater time for compounding growth and magnification of your portfolio size).TRUE CAPITAL GAINSThe Roth IRA is the only investment plan that truly lets you capture 100% of capital gains on a tax-free basis. If these same capital gains where made inside a 401k or traditional IRA plan, at the time of withdrawal they are CONVERTED to ordinary income at are taxed as earnings in that year.
Traditional IRA plans and 401K plans have the effect of converting your portfolio capital gains into taxable income at the time of withdrawal.LONGER COMPOUNDINGUnlike traditional IRA plans, Roth IRAs have no required mandatory withdrawal dates based on your age, and therefore allow you a longer time horizon for portfolio compounding and capital gains growth. Inside traditional IRA plans you are required to made mandatory minimum withdrawals (that will be taxable) after 70 years of age.ESTATE TAX REDUCTIONYour heirs will not be required to pay tax on the benefits received from your Roth IRA plan. In contrast, taxed would be need to be paid by your heirs to receive the benefits of a traditional IRA plan.EARLY WITHDRAWALSIn the event you need to access funds in the event of an emergency, the Roth IRA plans treat withdrawals differently that a traditional IRA. You don't pay tax on withdrawals from a Roth IRA until the amount exceeds your actual contribution amounts paid in. This is not true of an IRA, and you will also face an additional early withdrawal penalty in many cases.
IS A ROTH IRA RIGHT FOR YOU?In this article we have covered 7 of the powerful investment benefits you can reap holding a Roth IRA plan. Only your professional investment advisor can advise if a Roth IRA is right for your circumstances. Take the time to learn more about the power of a Roth IRA plan and contact your advisor today. It may be the best investment move you ever make.About the Author is a freelance writer, contributor, and editor of the http://www.rothira401k.com/ information portal..
About the AuthorS.A. Smith is a freelance writer, contributor, and editor of the Roth IRA 401k information portal.New Program Announced that Helps People Finance Real Estate Using Their IRA or 401k
(ContentDesk) July 28, 2006 -- Sum Total Financial Management has launched a new program that allows people to leverage their IRA or 401k to buy a home, property, vacation home, or any other real estate investment. The new program gets you cash flow that you need to ease the pain of making mortgage payments. Why be in a cash crunch or borrow money from the bank when you already have money in your 401k or IRA? Call Terry Treudt at 866-654-7200 or visit http://usirarealestate.com today to find out how you can be living worry free in your new home..
New Program Announced that Helps People Finance Real Estate Using Their IRA or 401k
Ira > New Program Announced that Helps People Finance Real Estate Using Their IRA or 401k
Asset Exchange Strategies, LLC Announces Key Partnership with Lifestyles Unlimited, INC. for Investing in Real Estate with IRAs
(ContentDesk) December 19, 2005 -- Asset Exchange Strategies, LLC, a leading self-directed IRA advisory firm that enables investors to purchase real estate and other non-traditional assets with an IRA, today announced that it has entered into a key partnership with leading Houston real estate investment and mentor group Lifestyles Unlimited, Inc. (http://www.luinc.com).
As a result of the strategic partnership, Asset Exchange Strategies will be the only company currently providing IRA LLC and other self-directed advisory services to Lifestyles Unlimiteds 4000+ members. With the exceptional tax and retirement benefits that alternative investments enable, especially using an IRA LLC, it is no wonder that their popularity is becoming more mainstream.
Asset Exchange welcomes the opportunity to work with an organization noted as the premier investing club throughout all of Texas, said Daniel Cordoba, Certified Estate Advisor,...
Ira > Asset Exchange Strategies, LLC Announces Key Partnership with Lifestyles Unlimited, INC. for Investing in Real Estate with IRAs
'How To' for Checkbook Control Self Directed IRA
Las Vegas, NV (ContentDesk) August 8, 2006 -- American Equity Corporation (http://www.americanequity.org) announced that its subsidiary SelfDirectedIRA.org has implemented a new free consumer website and it is now live online. SelfDirectedIRA.org provides consumers with a source for news, instruction, strategies and tips for implementing a
truly self directed IRA with checkbook control.Due to fact that we are a society concerned with providing adequately for retirement,
there has developed a need for a single source for the consumer to obtain the information necessary to fund their retirement programs in the most effective manner. While there are many sources that provide limited information to the consumer there is no single unbiased source.SelfDirectedIRA.org will fulfill the need for a single source. It will enable consumers to find everything they need related to self directed ira issues at a single site. SelfDirectedIRA.org provides free information for establishing...
Ira > 'How To' for Checkbook Control Self Directed IRA