{"id":139042,"date":"2012-07-11T06:58:37","date_gmt":"2012-07-11T13:58:37","guid":{"rendered":"http:\/\/getrichslowly.org\/blog\/?p=139042"},"modified":"2019-10-30T22:53:45","modified_gmt":"2019-10-31T05:53:45","slug":"is-your-money-in-the-right-place","status":"publish","type":"post","link":"https:\/\/www.getrichslowly.org\/is-your-money-in-the-right-place\/","title":{"rendered":"Is your money in the right place?"},"content":{"rendered":"
When it comes to investing, you have two big decisions to make: What to buy, and where to buy it. As for the former, you have all kinds of choices: cash, bonds, stocks, funds, real estate, and a piece of carpet from Elvis’ jungle room (yes, I have a piece \u2014 at least, that’s what the guy who sold it to me said it was). Regarding the latter, most people have just three general options: a traditional retirement account, a Roth retirement account, and a regular investment account. This article is about the second category \u2014 how to make the most of your investment accounts.<\/p>\n
If you’re like many investors, you have accounts spread throughout the financial services industry: an IRA or two here, a brokerage account there, perhaps a 401(k) still with a former employer. If you’re married, your spouse probably has a lineup to match. By consolidating as many of those accounts as you can with a single provider, you’ll unclog your mailbox and make tax time easier — and you can even make your portfolio fatter, thanks to these advantages:<\/p>\n
Choosing a company that deserves the honor of holding your nest egg depends on your style of investing. Here are guidelines based on your investments of choice:<\/p>\n
By investing after-tax money in a Roth account, you trade a tax break today for one tomorrow, as your earnings and withdrawals will be tax-free. Here’s a rule of thumb: If you’ll be in the same or a higher tax bracket when you retire, go with the Roth.<\/p>\n
There is no longer an income limit for converting traditional accounts to Roths. The converted amount gets added to your taxable income in the year you make the move, so if your traditional account is down significantly and you’re contemplating changing it to a Roth, you may want to convert some while the account is down. (Check out this article<\/a> to hear from several financial planners about why a Roth conversion might make sense, though the option to spread the tax bill over two years was available only in 2010.)<\/p>\n<\/span>The Right Investments in the Right Accounts<\/span><\/h2>\n