Let's talk IRA's | The Compost Bin | Forums

The traditional vs. the roth...both have there merits.  I am pretty well versed on these, as it stands now the simple difference is pay now or pay later. 

Pay now...is roth...you are putting in money that you have already paid taxes on and when you draw it out you don't pay taxes (plus you get a tax write off for what you put in that year).  Pay later is the traditional...you use pre tax dollars now and pay taxes when you draw it out.

Of course there are rules about when you can and have to start drawing it out for both.

There are a lot of good funds out there...crappy ones don't stick around long and usually get absorbed by a bigger one.

We have both.  Trying to balance our retirement in a few different ways.

No one has a crystal ball, but there is a large thought out there that the traditional IRA will see some significant changes as time goes by.  With Soc Sec circling the drain and traditional pensions a thing of the past, it is anticipated that the tax rate on traditional IRAs will go down to ease the financial burden when money is withdrawn...also this 'should' encourage folks to take advantage of them in higher numbers of participation.

We have them through work and State Farm.  They are tied to mutual funds that have track records...can be low or high risk...there are a number of good sites that you can go on and answer questions anonymously and find your risk tolerance.  I go with high risk so far and I am slowly going to moderate.

Our plan is to keep saving what we can in traditional and roth's.  Followed by building with cash for no mortgage, continuing to be more self reliant, minimize utilities (electric, propane, heat), and minimize taxes by building smaller and keeping future out buildings to what are considered 'sheds' here to avoid increased assessments, and buy quality items that last and serve multiple needs...plus we drive our vehicles into the ground (I have a 1997 Toyota)

Kind of a systems approach.

I would not invest in any IRA that is annuity based, very secure, but poor rate of return. 

A really great site is the MotleyFool.com.  They are straight forward and talk in understandable language for all levels.

As for where to go, you could try your local Chamber of Commerce or SBA.  Banks and insurance companies also have products as well...these are all highly regulated and it is hard to find a bad one...biggest thing to weigh out is what fees/maintenance charges they have.

I tell people to do whatever they can, even if it's 10 dollars a week, something is better than nothing.

Let me know if you have any other questions...happy to help.

They are modest in my opinion.  The thing I like is that they are a very strong company and they have a good track record with us.  I am not a fan of big business...but they are financially solid and have knowledgeable people.  The other thing I like is they are flexible and they are easy to reach (local offices all over here) and you can sit face to face with a real person.

...one other thing I really believe in, is there 'umbrella liability' policy, it is very inexpensive and covers us for an liability, up to a million dollars....from a car accident, slip and fall on our property, etc...so if we are sued or get into a mess, the lawyers go after the money from the policy and in all likelihood the million would cover the law suit and we would not literally lose the farm.

I would definitely take a look at them.