So, given the difference in how taxes are treated in these accounts, how can you choose where to put your money? For example, when would you contribute to a Roth IRA or Roth 401(k), rather than a traditional, tax-deferred IRA or 401(k)?
Over the course of their lives, many people pick up a variety of financial accounts from multiple sources. They might have a few IRAs from different providers, a couple of old 401(k) plans from past employers, an insurance policy (or two) purchased many years ago, and a scattershot of stocks, bonds, certificates of deposit and other investments.
Some 50 percent of households are considered at risk of not having enough money to maintain their living standards in retirement, according to the National Retirement Risk Index, produced by the Center for Retirement Research at Boston College.
Of course, you've lived with yourself your entire life, so you probably have a pretty good idea of your likes and dislikes and what makes you comfortable or uncomfortable. But investing can be a different story.
If you are one of these owners, or thinking about becoming one, you'll always have a lot to think about when running your business, but there's also an area you can't ignore – your retirement. Specifically, you need to consider establishing your own retirement plan.
Famed film producer Samuel Goldwyn once said: “The harder I work, the luckier I get.” And this same philosophy can apply to your investing, too – because you can indeed work to become a better investor.
You will find few "off the rack" solutions for dealing with the financial challenges associated with Alzheimer's. For one thing, family situations can vary greatly, both in terms of the financial resources available and in the availability and capabilities of potential caregivers.
This doesn’t mean you should make drastic changes to your portfolio. You still need to stick with the asset allocation that’s suitable for your situation, which typically involves owning a certain percentage of growth-oriented vehicles, such as stocks, and a certain percentage of fixed-income securities, such as bonds.
Your first step, of course, is to know what you're up against, so here are some numbers: For the 2017-18 academic year, college costs (tuition, fees, room and board) were, on average, nearly $21,000 for in-state students at four-year, public schools and nearly $47,000 for students attending private colleges or universities, according to the College Board.
If you, too, are thinking of moving someday, you will want to study possible locations, but you also need to be aware that where you eventually decide to live can greatly affect your savings and investment strategies – both now and during your retirement.
Look for red flags, such as a reluctance to discuss money matters, consistently unpaid bills, unexplained withdrawals, mysterious wire transfers or a sudden need to purchase large quantities of gift cards.