Roth IRA Conversion Mistakes Can Be Costly
One popular way to fund a Roth IRA is by transferring assets from a traditional IRA or an employer-sponsored retirement plan. This type of transaction, called a Roth IRA conversion, is simple in theory but can be complicated in practice. If you make certain mistakes, you could lose some key advantages.
Why Realistic Expectations May Be Great
Although positive thinking can be powerful, there's a fine line between optimism and unrealistic expectations. There are possible pitfalls when overestimating how a portfolio will perform.
Favorable Dividend and Capital Gains Tax Rates Extended—for Now
The 2010 Tax Relief Act extended the 15% maximum tax rates on qualified dividends and long-term capital gains through December 31, 2012. But without further legislation, dividends will be taxed at ordinary income tax rates and capital gains tax rates will return to 20% (23.8% for investors in the two highest tax brackets) in 2013.
Understanding the Appeal of Mutual Funds for High-Income Households
Mutual fund ownership increases directly with household income. In fact, 81% of households with incomes of $200,000 or more own mutual funds. What is it about mutual funds that attracts affluent investors?
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