This week we’re discussing how to avoid common IRA mistakes, become a more skilled investor, and whether or not you should add your teenager as an authorized credit card user. Here’s what you need to know now:

  • Along with 401Ks, IRAs are one of the most popular retirement accounts. They provide more flexibility than other accounts and are relatively easy to open. In terms of contribution rules, however, IRAs are complex and mistakes can be costly. Jeff Rose from Forbes compiled a list of the most common IRA mistakes, and tips on how to avoid them. He suggests making IRA contributions even if they aren’t tax deductible, taking advantage of the ROTH IRA, aiming for the maximum yearly contribution, and explains how to avoid unnecessary penalties.*

Retirement Nest Egg [Small]

  • Most wealthy investors don’t attribute their success to luck, rather their ability to study the market to make smart decisions with their money. Accumulating assets and building wealth over time is possible if you adopt a forward-thinking mentality and live by a few basic rules. Rebecca Lake from Business Insider’s Your Money recommends diversifying your portfolio, pinpointing how much risk you can tolerate, considering the management fees and taxes associated with certain investments, and adopting a cool-under-pressure attitude in a volatile market.*
  • Have you ever had doubts about adding your teenager as an authorized credit card user? Holly Johnson from The Simple Dollar points out that while this arrangement might sound scary, chances are it will prove beneficial in the long term. Although authorized users are granted financial access, the cardholder is usually allowed to set a monthly spending limit and other stipulations. Johnson suggests adding your teen as an authorized user—with certain training wheels in place—so they can begin to build credit and learn to use it responsibly.

* All tax/investment information provided in this blog post is intended as a convenient source of information. This information is general in nature, is not complete, and may not apply to your specific situation. Please consult with your own tax/investment advisor regarding your specific tax/investment needs.

One comment on “Money Saving Tips: October 19th – 23rd

  • Synchronicity is crazy! I finally just opened a Roth for my husband and I today!! We are pregnant with our second child and my deadline for getting this done had been before he arrives. I’ve been procrastinating since my first was born. Anyhow, I’m due in 7 days and just opened the Roth today. I’m 34, so we’re behind the 8-ball for retirement. And, we only opeend one for now. But, it was the best we could do and it’s better than the nothing we’ve been doing. I feel relieved, proud, and nervous. I did as much reading as I could. But, when it came down to it I still felt in over my head; like I didn’t grasp all the concepts. But, I had to make my deadline and DO something. Thanks for the timely post NCN.

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