Q & A at Investopedia

I have recently started working with Investopedia.com. I will be providing original articles, quotes for other writers and answering Questions submitted by readers. Below are the questions and answers for the past week. Please click the “Read More link to view the entire interest. Please click to Follow me as well and you’ll be notified of my postings as they are posted.

Which retirement account should we set up for our children?

I would go for an individual stock or two that are “Dividend Aristocrats.” These are companies that have increased the dividends paid to their shareholders for at least 25 years,… Read More

How should I keep my savings with a bigger investment goal in mind?

That’s what banks are for, you trade off low return for low or really no risk. Don’t think you are a dummy for doing so, there is $14.6 trillion dollars… Read More

Can my employer keep the interest earned from my 401(k)?

Definitely not, if what you say is what is happening. First, a 401(k) is an off shoot of a profit sharing plan. Point is that the plan document, which he… Read More

Now that the DJIA has reached 20,000, is it still a good idea to invest in the market?

Great, but loaded question! First, yes the market has gone straight up since 2009. But until 2013, it was only regaining what it lost in the financial crisis. This is… Read More

Is further action required on my end for a miscalculation of my RMD?

The way we handle this is to correct the RMD with draw immediately, which it appears you have done. The IRS actually says that they may impose a penalty of… Read More

Is it worth it for my husband to contribute to his 401(k), despite his age?

The RMD for a 74 year old on $25,000 is just over $1,000. So by contributing $25,000 to a 401(k), you defer taxes on $25,000 of taxable income. According to… Read More

How can I supplement my income until I am able to withdraw from my retirement account?

If your non-qualified savings is over $30,000 ($1,000/month x 30 months), then just keep the money in the bank and make your $1,000 withdraws. If your savings is less, or… Read More

Should I retire at 66 years old and use my IRA for income before taking Social Security?

Definitely “Yes.” There are two advantages to delaying your Social Security payments. First, your annual payments will increase by about 8% per year between now and age 70. You can… Read More

Which investment vehicle will produce the most long term growth for my children?

Comparing a Roth to an index fund is apples vs. oranges. A Roth IRA is a designation for an account with specific rules that allow for tax free earnings. You… Read More

Do I have control over how my employer-sponsored 401K assets are invested? What are my options?

A 401(k) is generally a self directed retirement plan. Your employer chooses a list of fund choices, but you determine which funds to use for your personal portfolio. This can… Read More

Mr. DeShurko is a registered representative of Ceros Financial Services, Inc, (Member FINRA/SIPC). Ceros is not affiliated with 401 Advisor, LLC or Fund Trader Pro. The views expressed are those of Mr. DeShurko and do not necessarily reflect those of Ceros Financial Services, Inc., its employees or affiliates.

Bill DeShurko