IRAs & 401(k)s

One of the most important, and irrevocable, financial decisions many people ever face is whether to take their retirement money in a lump sum vs. annuitizing it. Here's a simple three-step process to help you evaluate this crucial decision.

For most investors during a bear market, the challenge is sitting tight and not taking too much action. But there's one financial move that is tailor made for bear markets: converting a Traditional IRA to a Roth.

SMI's Just-the-Basics and Upgrading core strategies tell you which funds to invest in — but two questions remain: How often should you invest? And how much should you invest at a time? Here's a simple answer.

Turning an IRA into a "stretch" IRA is as easy as filling out a simple form. And it could make a difference of hundreds of thousands of dollars for your children and possibly your grandchildren.

Your most important long-term investing decision isn't choosing which specific stocks or mutual funds to buy. Rather, it's deciding how much of your portfolio to invest in stocks vs. fixed-income (typically bonds). William Bernstein explains why this is the case in this month's cover story — an excerpt from his recent book, The Investor's Manifesto. He also offers a framework to help you make this key decision, based on how you reacted to the 2007-2009 bear market.

It's been 36 years since Congress authorized the IRA — the tax-advantaged Individual Retirement Account. With the April 15 deadline to make an IRA contribution for 2009 approaching, it seems like a good time to answer common questions related to IRAs, such as: "Should I choose a regular IRA or a Roth IRA?"; "Is it worth converting a regular IRA to a Roth?"; "Which is better: an IRA or a 401(k)?"; and "How do I roll an old 401(k) into an IRA?"

How do people become wealthy in America? After studying the rich for many years, authors Thomas Stanley and William Danko have compiled a detailed picture of who the wealthy are and how they got that way — a picture far different than the common perception. Their research indicates there are seven common denominators among those who successfully build wealth. Read on to discover what America's wealthy have in common and how to align your financial efforts with these tried and true principles.

"There's an exception to every rule," someone once said. That's an understatement when it comes to IRAs. The rule that says you can't withdraw your IRA money penalty-free until you're 59½ has plenty of exceptions.

Even though there is much to like about the Roth 401(k), its upside may not be quite as strong as many people think.

Implementing SMI's Upgrading strategy in a 401(k) account normally requires access to a sizeable number of mutual funds. But if your plan offers only a few fund options, there is an alternate approach.

Many people know they aren't saving enough for retirement — they just don't know how to fix the procrastination and lack of willpower at the root of the problem. Enter a pair of "behavioral economists" and a simple, yet effective, plan to raise individual savings rates. It's worked for others, and it can likely help you too.

Because of changes in the law, 2010 seems like the ideal time for holders of traditional IRAs to convert their accounts to potentially tax-saving Roth IRAs. But the decision of whether to convert or not is more complicated than it may appear.

"How do I Upgrade in my 401(k) account?" It's one of SMI's most commonly asked questions. Here's a step-by-step walkthrough of how to apply Upgrading within your company retirement plan account.

If you're an Upgrader, the Recommended Funds report offers key information that can help you make good decisions when selecting mutual funds. Depending on your preference, the report allows you to keep things simple or go deep.

What's the best way to hold gold coins or bars in an IRA? The process is fairly straightforward, but it is more complicated than "normal" IRA investing. It's also significantly more costly.

Investors buy bonds for safety. But bonds are quite vulnerable to a specific risk that is starting to pop up on investors' radar screens: inflation.

"We'd like to start prepaying our mortgage, but we can't do that and invest for retirement. Which should have the priority?" Good question. Let's run the numbers.

If you're self-employed or own a small business, you know there's no fancy company pension waiting for you when you retire. However, there are solid retirement plans available to small businesses which can help you save. We explore 7 of the most common types, and offer help deciding which is best for your business.

You don't have to work in Corporate America to have access to a good retirement plan. Most federal employees also have a solid plan at their disposal—The Thrift Savings Plan. With generous matching provisions and solid, index-fund investing options, it's well worth every federal employee's while to take advantage of the opportunity the TSP provides.

Switching from decades of accumulating a retirement nest egg to actually living off of that savings is a tricky transition for many retirees. To make it simpler, some of the larger mutual fund companies are introducing new products that offer to manage the process for you. We evaluate whether that's an offer you should accept, or if you're better off handling it on your own.