S.J. asks from Cherryville, MO on December 16, 2009
Need Easy to Read Guide for 401K Info, Roth Iras, Etc
My husband for Christmas would like a book or guide explaining the difference between all the available investment possibilities, most notably Roth IRA's, 401K, etc. My husband and I are both without jobs that offer 401K or any such benefit, so we need to invest on our own. Any suggestions for a book or guide?
S.S. answers from Santa Barbara on December 16, 2009
This is sooooo smart. I was a financial advisor and so many people didn't take care of this. There is a "Wall St. Journal Guide to starting your financial life." That is available on Amazon and you might be able to find it in Borders or Barnes and Noble.
I used to hand these out to new investors as they are paperback, relatively inexpensive, informative and very easy to read.
1 mom found this helpful
C.D. answers from St. Louis on December 17, 2009
You might also look into Suze Ormon's (sp?) books. They should be written for the average person to understand. There's also a couple on tv who does financial advice, but I can't remember their names.....not sure if they have a book, but they probably do.
K.O. answers from Kansas City on December 17, 2009
I've shopped for these myself! Look online or at Borders....I ended up with "personal finance for dummies", but there were some that were more specific for what your husband wants....the one I bought covered a bit more than just comparing these things, but this line of books (the "for dummies!") is easy to read and understand...believe me, I am not a financial wiz, and I found it very helpful!
C.L. answers from Kansas City on December 17, 2009
My Dad is a Primerica Rep. They deal with all of that kind of stuff. Not sure what area you are in, but we are in the KC area. If you are interested, let me know, I'm sure he'd love to talk about it to you, as he does with anyone who will listen ; ) LOL My 9yr old has gone with him to meetings and has stated he now wants to be a financial advisor lol.
R.F. answers from St. Joseph on December 17, 2009
You can go to IRS.GOV and look at publication 590. This has a lot of information about IRAs and Roths. This is free of charge might be a good place to start. Also most financial institutions have information they will hand out that has information about Retirement plans.
C.S. answers from Kansas City on December 17, 2009
Dave Ramsey has some great books on investing/saving
J.G. answers from St. Louis on December 17, 2009
I just went on Checkpoint to make sure. You cannot join a 401k unless your employer offers it. I do not know of any books on the subjects. Please feel free to message me if you have any specific questions.
You can contribute $5,000 a year ($10,000 if both you and your husband participate) tax free to an IRA. A Roth IRA like a Roth 401k is taxed in the year you are participating. So when deciding between a Roth product you want to consider your marginal tax rate. If you believe it will be higher when you retire then take the Roth if not you want a traditional IRA. IRA rates vary by the financial institution you purchase them at.
The basic difference between Roth and traditional is that on the Roth you pay taxes on the principal when you purchase the IRA. Then when you retire you are only taxed on the interest. If you want the tax deferred benefits you want the traditional IRA.