Question: I was wondering what you think about using a Roth IRA as a “true” emergency reserve (job loss, etc.) vs. a cash reserve for “stuff that just comes up” (water heater breaks, fender bender, etc.). You could draw down the principal of the Roth tax-free, and if you invest in TIPs [Treasury Inflation Protected Securities], there Read more »
Converting a Traditional IRA to a Roth IRA
Question: I am 68, average health, with a 63-year-old wife, healthy. Is there any wisdom to converting a current IRA to Roth? Answer: Traditional IRAs give a tax deduction up front, but distributions are fully taxable. Roth IRAs provide no tax benefit up front, but distributions are tax-free (so long as they aren’t premature). In theory Read more »
Why Is it Wise to Invest in a Roth?
Question: I have tried reading the IRS bulletin on Roth IRAs but still have a question. If you are over 59 1/2 and have owned a Roth IRA for at least five years, are the distributions (including any income you have gained) tax free? Is it wise to invest in a Roth? Why? Answer: The Read more »
Lesson 2 – Financial Independence
For many people, financial planning is synonymous with retirement planning. In my view, however, retirement itself is not necessarily a worthy goal. First and foremost, you should find work you love and not be engaged in activities that mainly inspire you to daydream about when you won’t have to be doing them. We’ll talk more Read more »