What is a Roth IRA?

Roth IRA Rules

Roth IRA Contributions

Roth IRA Withdrawals

Roth IRA Taxes

Roth IRA Conversions

PREPARING FOR THE LONG(er) HAUL

How much money do you need to retire comfortably? My guess is that you're being overly "morbid" in your assumption. The good news is that you will live longer than you've previously accounted for, the bad news is that you're retirement account may not have heard the good news.

According to the World Bank, the average life expectancy for persons in the United States in 1960 was 69.8 years. Due to increases in medicine, healthcare practices, government regulations and food standards to name a few, that same life expectancy figure had risen to 78.1 years by 2009. For math geeks like me, I'll give you a minute to do your calculations...for everyone else, I'll share my astonishment. Your calculator shall confirm that each of us is expected to have beating hearts for 8.3 years longer than our parents. If you still aren't impressed, think of it this way, for each passing year since 1960, persons in the United States have been able to add roughly 62 days onto their lives. WOW. After we celebrate, let's focus on how we will support ourselves during this extra time.

WAYS TO INCREASE YOUR NEST EGG

Holding investment returns constant under all situations, there are two ways to increase your retirement account.

1. Invest for a longer period of time - For most of us, increasing our investment time horizon means working longer. If this is a suitable alternative for you, it is the easiest way to boost financial security, if this isn't acceptable, find odd jobs or small gigs to delay having to withdraw from your account for a few years. Remember, a delay in withdrawals can have the same effect as extra contributions.

2. Save a larger percentage of your income - It's never a bad idea to increase your savings rate. The more that you can squirrel away during your working years, the more well-positioned you'll be in your golden years.

Rapid changes in life expectancies should be accompanied by rapid changes in your retirement strategy. Save enough so that your extra years will be the most enjoyable!

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