Should I Invest in a 401(K) or a Roth IRA?

Should I invest in a 401(K) or Roth IRA?  I would contribute first to a 401(k) plan that is sponsored by your work.  The reason being is so that you can take advantage of a employer match.  For example, if your employer matches a contribution at 6%, they have basically given you free money.   If your salary is $50,000.00, and you have 6% of your salary taken out of your pay check to contribute to the 401(K), and your employer matches 6%, for a given year, your employer has given you $3,000.00 of free money.  

If you have money that you can save for retirement after you have invested in a 401(K) up to the employer match, it might be a good idea to put it in a Roth IRA.  With a Roth IRA, your money will grow tax-free until you reach the retirement age of 59 1/2.

How Much Do You Have To Save To Be A Millionaire

How much do you have to save to be a millionaire is question many of us have thought about, but how much do you have to actually set aside?  cnbc.com has the answer:

Building a seven-figure portfolio isn't as hard as you may think. In fact, some say that "millionaire is the new middle class."

To illustrate just how attainable the dream of becoming a millionaire is, personal finance site NerdWallet created a chart showing how much money you need to set aside each month in order to have $1 million saved by the time you're 67.

The chart assumes you're starting with zero dollars invested. It also assumes a 6 percent average annual investment return.

The amount you have to save depends heavily on how early you start. NerdWallet listed the savings amount needed for the starting ages of 23, 30, 35 and 40. As the chart shows, the sooner you start putting your money to work, the less you'll have to save each month, thanks to the power of compound interest.

      Here is how much you have to save each month, thanks to the power of compound interest:

Here's how much you have to save each month if you start at age 23:  

23: $415 (about $14 a day)

30: $651 (about $21 a day)

35: $912 (about $30 a day)

40: $1,300 (about $42 a day)

Ready to put your money to work? The simplest starting point is to invest in your employer's 401(K) plan, a tax-advantaged retirement savings account. Next, consider alternate retirement savings accounts, such as a Roth IRA, traditional IRA and/or a health savings account

You can also research low-cost index funds which Warren Buffett recommends, and online investment platforms known as robo-advisers.

Stock Market Today - Still on Fiyah!

The stock markets in the U.S. today are still on fire!  All equity indexes are at or near all-time highs. The Dow Jones Industrial (DJIA) average gained 140 points today to close at 21,454.  The S&P 500 average gained 21 points to close at 2,240, its best day in two months; the S&P 500 is trading at a forward price earnings (P/E) of 17.5 times earnings.  Lastly, the NASDAQ keeps flirting with new highs too.

The Economy of India - The Final Frontier

Much has been said about the country of India's economy. During the last quarter, the Indian economy checked in with an impressive 6.1% growth rate. The pundits argue that the economy is slowing. However, the International Monetary Fund (IMF) projects an explosive Gross Domestic Product (GDP) growth rate of 7.2% in 2018, and 7.7% in 2019; this compares to a dismal 1.9% growth rate for the United States GDP during the Socialist's Obama administration.
Though inequality and the caste system prevail in the economy, the growth prospects are impressive; three to four times that of the United States economy! So is India now the land of opportunity? Will the incredible growth rates continue? Will India be a good place to invest? Time will tell.

Pay off Student Loan Debt or Credit Card Debt First. Which Should You Pay Off First?

Should one pay off a $5,000 federal college student loan with a 3.5% interest rate or $5,000 of credit card debt with 9.0% interest rate?  Generally one would think that it is best to pay off a $5,000 credit card because of the higher rate.   But did you know, that federal student loan debt is not dischargeable;  that is, if you file for bankruptcy, the student loan debt is not forgiven by the courts, whereas credit card debt is!  So the next time you are paying bills, weigh the options.