More than half of U.S. savers with taxable individual retirement accounts won’t convert to a tax- free Roth type because they aren’t convinced about the tax savings, according to a Putnam Investments LLC survey.
Bashing the investment habits of millennials is popular lately, but often misguided. Adding to evidence that the kids may be alright: their embrace of Roth IRAs. Millennials contributed to the accounts twice as often as those age 50 and up, according to the Employee Benefit Research Institute. That may be because more seasoned, highly paid workers think their incomes disqualify them from opening a Roth.
A cap that President Barack Obama has proposed on the size of tax-advantaged retirement accounts is seen as potentially pushing savers to another product that limits payments to the government: life insurance.
Look at your kids and you'll likely think of education, marriage or career, not retirement. Now, though, when kids are relatively young, is the smart time to set them up with a Roth IRA for their retirement.
Premature withdrawals from retirement accounts have become America’s new piggy bank, cracked open in record amounts during lean times by people like Cindy Cromie, who needed the money to rent a U-Haul and start a new life.