The Wisdom of the Gaucho

With the demise of traditional pension plans and the projected future of Social Security in doubt there has never been a more important time for individuals to seize the initiative of saving for their retirement. But with many different options to choose from, it is imperative that retirement money be invested wisely and with as many tax advantages as possible.  Both 401(k) accounts and Individual Retirement Accounts (IRA) are important vehicle s to save for retirement, but which to choose from ? Here are some of the attributes of both 401(k) accounts and IRA's and how each can help you meet your retirement savings goals.  Funding your 401(k) account through your employer is the perhaps the most important investment step that you can make. Not only do many companies offer to match your contributions to these accounts, but 401(k) accounts have the important characteristic of being tax deferred, meaning that all interest and growth of principal is not taxed until th...

In the decade-and-a-half since their introduction, people have come to appreciate the incredible power of the Roth Individual Retirement Account (IRA). Roth IRAs allow individuals to save money for their retirement and let it grow tax free. Yup, you heard correctly; tax free. Roth IRAs are retirement accounts that are maintained by a registered financial institution, but created and directed entirely by you, the investor. These accounts can contain any number of investments including Certificates of Deposit, stocks, bonds, mutual funds, even real estate. You can open a Roth IRA through a brokerage firm (such as Charles Schwab, E-Trade, TD Ameritrade), a Mutual Fund Company (exp. Janus, Fidelity, Vanguard), Banking Institution (Wachovia, Bank of America, or Washington Mutual) or diversified financial company (Citigroup, ING). These accounts can be opened in person, via telephone, or even online. It pays to do your research to find out each companies sp...