Need aid near the 401k and Roth IRA limitations?
I know what the limits are, but I am not sure if I can combine them. I also enjoy some cathcing up to do.I did not contribute to either my 401k nor any Roth IRA ultimate year becuase I could not afford to. But this year I can afford to exceed the max...so I am planning on investing the $15,500 max in my 401k. I know nearby is also a $5000 catchup amount but I am not sure if this means I can confer invest an additioanl $5,000 in this as economically?
If I have extra money to invest even after adjectives this, how does this affect my Roth IRA? Can I invest in that as very well over and above the 401k?
Answers: The max contribution for a 401k for 2008 is $15,500 if you will be under 50 at the ending of the year. If you will be 50 or older by consequently, you can contribute an extra $5,000. (That's the "catch-up contribution" - it's simply based on age, not how much you contributed within the past.)
The IRA contribution check for 2008 is $5,000 if you're under 50, $6,000 if you are 50 or elder. You can contribute the max to both a 401(k) and an IRA in duplicate year. They are not related.
Note that with IRAs (but not 401ks), you can take home a 2007 contribution as late as April 15, 2008 (the date the export tax returns are due) as long as you had earn income in 2007. The edges for 2007 are $4,000 (under 50) and $5,000 (50 and older).
So, if you are under 50 and earn at least $4,000 second year, you can put $4,000 in an IRA as a 2007 contribution (as long as you do it by April 15), $5,000 contained by an IRA as a 2008 contribution, and $15,500 in a 401k.
If you're expecting a large income this year, your 2008 IRA contribution might have to shift into a regular IRA instead of a Roth. You cannot contribute to a Roth if your income is over certain confines ($116k if single, $169k if married) and you might not be able to contribute the full amount if your income is close to those precincts. If your income exceeds those limits, you can still contribute to a regular IRA, but not a Roth.
The fence in up contribution is for taxpayers 50 years old or elder. The additional $5000 go into the 401k not a Roth or Regular IRA.
If you have more money than that you can put money into the Roth IRA.
I'm within highschool. Got some lolly. Invest surrounded by stocks?
how do i start? ...preferably without much book reading...anyone know any dutiful stocks?
-breakaway risky type stocks and safe ones
Answers: You should study stocks a while previously you jump contained by. Now is a good time to not invest since here is evidence of a recession (that's when the stock market falls for a period).
Wait until it looks similar to the stock market have bottomed out and invest in mutual funds to some extent that individual stocks, since there is much smaller amount risk.
It is better if you make the judgment yourself, since if it is a bad conclusion, you have yourself to blame, I know greatly of people who hold lost a lot contained by the stock market. On average, the stocks within the stock market average 10.6% per year, and you should not put adjectives your eggs in one picnic basket.
stock market is going to decline soon your better off beside cd's or government bonds
Investing and living stale the money?? best option?
$350,000 (Aus Dollars) Tax Free to investI am a complete novice when it comes to investing thats why I want to put the money somewhere and live of the interest so I can study.
My option(s) as I see them are :
1. High Interest Savings statement (paid monthly)
2. No other options (without studying further)
Any laymans jargon would be appreciated.. Thanks
Answers: For long-term investing, stocks have historically provided the best returns, but if you involve current income to live off, I surmise you need something much more stable.
High interest hoard accounts are one option, but I'd be exceptionally careful in the region of choosing one and stick to well set reputable companies that have be around a long time. There are a lot of scam around claiming to offer dignified interest rates.
Government bonds might be another possibility. There are short-term bonds that mature inwardly months or a year or two, so buying a few short-term and some medium-term bonds could work.
Bank CDs are another possibility. Again, by putting some money in short-term CDs that seasoned in a few months and some contained by 1-year or 2-year CDs, it's possible to stagger the times that they mature so that in attendance is money available every month.
I don't know how rates are in Australia right presently, but in the US you can't procure more than about 4% or possibly slightly more in any of those option, which would only be an income of $14,000 a year on a $350,000 investment. I doubt that's plenty to live on so it might be necessary to use some of the $350,000 for living expenses or find some other source of income.
Again, I caution you about anyone offering better than normal interest rates. The scam artists promise things that look especially appealing to people surrounded by your situation, then steal your money. Be mean.
If you would like to go and get some annual income every year that has the knack to increase over time without any further contributions afterwards you should consider investing in dividend aristocrats. Dividend aristocrats are stocks that hold a history of consistently raising their dividends year after year for at lowest possible 25 years through a lot of undergo and bull cycles. An example of such a company is Coca-Cola or Altria ( Used to be called Philip Morris). The make-up about these dividend paying stocks is that some of them verbs close to what bonds would yield ( 4%) but they might also increase their fee each year to compensate for the inflation which decrease your purchasing power.
If you invest in bonds, you will hold a predictable source of income, but in the current environment you will lose indisputable purchasing value surrounded by them due to inflation. Dividend paying stocks on the other hand would submission you an ever increasing income, preserving your wealth and also giving you a potential for assets gains.
And ultimate but not least, dividend income is tax less than bond income within most countries.
If you want to know all of your option, or many of them,
turn to : low-cost-stock-recommendations
.com
May I suggest looking at the CD"s, Bonds and Global Investing Buttons. Especially Canada when you get into Global Investing.
This is my favorite website. I enjoy purchased one recommendation from them, a silver ETF that returned 15% surrounded by 4 weeks.
I would recommend personally, remaining conservative next to your money, however, I think you can find better investments than a money account.
Once again, look at the Canada Stock Picks. Especially Pick 2.
Good Luck