Traditional and Roth IRAs

By: Michael S. McGee

If you deposit your money to a Roth IRA, then you still pay income tax during the year the money was earned; you do not reduce your taxable income with a Roth IRA. The benefit of a Roth IRA is you are not required to pay income taxes on future distributions or gains. The Roth IRA is completely tax-free when it comes time for you to use the money.
The decision to open a traditional or Roth IRA is based on whether you need to reduce your income taxes now or if you can wait for the tax benefits. The beauty of an IRA is that while saving for your future you money on income taxes too.
So the thing to do is to take action and start planning now; donít procrastinate by thinking you have plenty of time. If youíre 20 years old now, you likely think you will never be old. If you are 55 years old now, you remember when you thought like a 20 year old; you realize how quickly the time flew by and how much closer you are to retirement.
Michael McGee is a financial planner who specializes in helping people of all ages get on track to meeting their current and future financial goals. Retirement planning is not something to be put off until later; all working adults should be saving for retirement. For more information, visit

No 7
Wealth Building: How to save a Million Dollars
Saving a million dollars really isnít all that hard to do. Think of is this way. Are you able to save up $1,000? Sure you are; thatís easy! Well, just do this $1,000 times and youíre there! Of course, the interest dividends you receive along the way will help too.
Donít waste your time thinking that you will never have money in the bank because you donít make enough. As long as you are receiving a steady paycheck, you can deposit money to your savings account each week, whether you just deposit the loose change or a whopping $50 - $100! Make it a rule to pay yourself first; always deposit something to your savings account.
If you have a very low wage job, then your goal is not to save a million just yet; your goal is to have more than you had last week. As you continue on this path, your money will grow. Slow growth is better than no growth. The important thing is to start now; do not wait until things get better. Youíve likely heard the saying, ďthe more you make, the more you spend.Ē This is true with too many people.
While you may want to improve your lifestyle as you get pay raises or job promotions, keep in mind that you also need to increase the amount of money you save each week or each pay period. Do not put the entire pay increase toward new toys and living expenses if you really want to get ahead.
Once you have enough money in the bank to allow you to pay your bills for 3 Ė 6 months in the event of job loss, you should feel secure enough to look into investing in some stocks or mutual funds. These can be set up in a number of ways. The best way is to have an automatic withdrawal, a set amount on the same day each month, from your checking account to your stocks, so they build at a nice rate.
Seek the help of a financial advisor who can fill out your financial analysis based on your income, your age, family size, living expenses and future goals. A good financial advisor will be able to steer you in the right direction to keep you moving forward toward your goal of one million dollars! You should be able to complete this goal and continue onto two or three million dollars as one million dollars really isnít what it used to be.
Michael McGee is a retirement planning expert who can help you with your financial analysis and steer you in the right direction with advice as to which type of account(s) you need to establish for your future needs. Whether you wish to save for a vacation in the next few years, college tuition for children, retirement or long-term health care, Michael can formulate a plan for you. Read all his articles on wealth building at

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Michael S. McGee provides financial planning, retirement planning and financial advice everyone, including average people who work hourly rate jobs, small business owners, self-employed entrepreneurs, affluent individuals, corporations, associations and foundations. Michael works with young families to establish college plans for their children and savings and retirement plans for their own futures.

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