You have to watch this video of personal finance blogger, Kevin McKee, singing about his love for ROTH IRAs. It’s hilarious! I love the chipmunk vocals. He does a parody of Bruno Mars’ hit song “Just the Way You Are.” McFee blogs over at Thousandaire.
DonkeyHotey / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
I know the last thing you want to think about during the holiday season is taxes. Alas, as the saying goes in this world nothing is certain but death and taxes – that’s why it’s prudent to start preparing now. I’ve compiled a list of things you need to do to save money on your taxes next year.
Feed your 401k – If you have an employer-based retirement plan make sure to max out your contributions especially if the company is
A little graduate. Banana Custard / Flickr
This financial planning post is brought to you by Towry, the UK’s leading investment management and wealth management firm. Towry offers independent financial advice, pension advice, SIPP and retirement planning.
This is a post by BargainBabe.com writer Yazmin Cruz.
Graduation season is in the air. If you’ve already received graduation announcements, it’s time to start thinking of the perfect gift. Here are four helpful gift ideas to set grads on the right financial track.
1. Retirement accounts – Students seldom think of retirement because they are busy being young. This gift not only includes a chat with you or a financial adviser about retirement, but a cash gift, which we all like. Sit down with your graduate and help them start planning for the future. By starting early, the power of compounding interest and time will allow your graduate to build wealth. If they are working for a company that provides employee retirement plans like a 401k, encourage them to take advantage of it. Before they do, make sure to read Bargain Babe’s post on how to determine if your 401k plan sucks. If your graduate will be self-employed, a talk about how to open an IRA is a must. Keep in mind that whatever amount you are willing to gift your graduate is up to you and know that it will be welcomed and appreciated.
2. Start an emergency fund – (more…)
Start early, and your IRA will grow into a mature account. Credit: Rev Stan/Flickr
I want to give my little brother his very own IRA retirement account as a college graduation present. Just what every new grad needs!
He just started a new job and is working on creating a budget that fits his $513 a week salary. One of his main goals is to get his car on the road, but I’m gently trying to persuade him to buy a monthly bus pass and contribute to an IRA retirement account. This may well be his quickest way to become a millionaire. (In case you wondered, he said my post about his new budget was “legit.”)
I waited far too long to establish an IRA (mid-20s) and regret I did not begin contributing as early as possible. In fact, I don’t know of any age (more…)
A bank vole captured by blackclough/Flickr
I recently switched banks for a higher interest rate on my checking account. My new bank is nontraditional so I had to consider what behaviors would let me take advantage of the account fully.
1. My bank does not have their own ATMs. However, all my ATM fees are refunded to me on a monthly schedule. As crazy as it seems, this is probably cheaper for the bank than maintaining thousands of ATMs across the country. I try to use the ATM only once a month so I don’t rack up a lot of fees, even though they are reimbursed, because I figure the bank factors the expense into other services.
2. My bank does not have traditional branches so I do not have access to bank tellers to make large cash withdrawals or deposits. This is rare for me, but uncomfortable if it comes up. The branches accept check deposits or I can mail in deposits.
3. The branches are few and far between so I do the vast majority of my banking online, through the mail, or over the phone. The bank website is great, I can request free deposit envelopes through the mail, and the US-based phone service is excellent.
4. I have free checking as long as I have a debit card for the account. This is my first debit card ever and I usually use it for small purchases. It does not feel as safe as using a credit card, however. I think that is just me.
5. My other bank services are free as long as I have a brokerage account, which I use to fund my ROTH-IRA. I like having my checking, savings, and IRA all through the same bank, though I’m worried it makes me more vulnerable if my identity is ever stolen.
All told, I’ve had to adapt my banking habits slightly to take advantage of my new nontraditional bank. But I think I made the right decision because I pay no monthly bank fees and my interest rate is higher that my previous bank. Knowing this, would you bank with a nontraditional bank?
