Finding a great online brokerage firm to hold your Roth IRA, Traditional IRA, or just general trading account is a daunting task. Each broker tailors their website to show off their strengths and hide their weaknesses in comparison to their competition. Comprehensive fee information is hidden deep within the website; sometimes you specifically have to do a Google search to find the page with the entire fee and commission agreement. Simply put, this is not how it should be. We believe transparency and easy to navigate websites should be the norm with brokerages. Until that time comes we have done the research for you. (You can thank us later when you retire on your own island, ok?) We’ve just launched a new online broker comparison page that will be kept up to date with the latest information on the best brokerage firms available. Below you will find a comprehensive review of the most critical aspects to look at when selecting your online broker: [Read more…]
Do you know what your income tax rate will be in the future?
The answer to that question is key to your retirement planning. If you think your tax rate will be lower in the future then it makes sense to avoid paying tax now through a tax-deferred investment vehicle like a Traditional IRA.
But with a mounting national debt, many people believe personal income tax rates will eventually be forced to increase.
Even if the national debt somehow gets taken care of, the government doesn’t tend to lower a tax once it is set.
If tax rates are going to go up the best retirement account for you to open if you qualify is a Roth IRA.
You will pay income tax today and never pay income tax on your nest egg again.
Where to Open a Roth IRA
Once you’ve made the decision to open a Roth IRA there are a number of companies that are happy to accept your contributions. The number of options you have can be overwhelming: do you go with a discount broker, a full-service broker, or direct to a mutual fund company?