Being wealthy doesn't mean having all the money in the world, just not having to worry about it.

Roth IRA as Emergency Reserve?

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 »