Nicole Hatcher

A Roth IRA is a tax-efficient retirement savings account that allows account holders to make post-tax contributions. Unlike a traditional IRA, you won’t get a tax deduction, but your investments will grow tax-free, and your withdrawals will be exempt from taxes. Roth IRAs have strict income limits, contribution guidelines, and are not suitable for high-income earners. By the time you turn 40 years old, you should be contributing 10% of your income to your retirement fund.

If it’s 3% of your salary, then find a way to save 3% of your salary. All you need is a little extra money on top of your minimum payments each month to get it going. Even if it’s $50 a month or it’s an extra payment one time a year. Start evaluating your financial situation and how you can lower your tax liability long before April 15 so you can put the plan into action.

There are plenty of cash investments, including CDs, high-yield savings accounts, and money market accounts. You can either become a trader, invest in mutual funds, or let your money grow through an index fund. Active investing requires a hands-on approach, involving daily market research, understanding of economics, trading strategies, and tax management. At this step, you’re ready to invest, but you need to find the money to start investing.

Welcome to October! I hope that you are staying safe during the ongoing COVID-19 pandemic. Our way of life has changed in many ways, but one constant remains