Many investors opt to put a portion of their earnings into a Roth IRA to benefit from the potential tax-deferred earnings of such an account as well as tax-free withdrawals during retirement, both made possible because Roth IRAs are funded by after-tax dollars. Thanks to recent tax law changes, there may be a way for you to access the benefits of a Roth IRA even with a generous salary.
If you are like most professionals, you’ve most likely worked for more than one employer during the course of your career. While “job-hopping” was once a frowned-upon activity, these days, it is neither uncommon nor the subject of much stigma to be employed by many different firms throughout your working years.
Although we may not realize it, all of the decisions we make involve some calculation of risk versus reward. From simple everyday choices like getting lunch at the usual spot or trying someplace new, to more complex decisions like how to invest for retirement, our brains are wired to view decision-making as the process of calculating potential reward and inherent risk.
Today’s early news that the U.K. voted to part ways with the European Union, in a historic vote commonly referred to by news media outlets as “Brexit,” has had a tumultuous effect on global financial markets. The uncertainty the future holds has led many to panic, and investments that are traditionally more volatile to begin with moved sharply downward in many sectors of the market.
Last night on HBO’s Last Week Tonight, host John Oliver took a hilarious and very candid look into the world of retirement planning, pointing out how much ambiguity is present in the job titles financial professionals may choose to employ. Another great point the show brought up is compounding interest - showing exactly how important it is to start investing for retirement early.