Rolling your 401k: Contributory IRA vs. Rollover IRA

Written by Ulli G. Niemann


Continued from page 1

Contributory IRA: Once you roll your proceeds into this type of IRA, you may still contribute annually if you qualify (check with your accountant). However,repparttar 401k portion can no longer be rolled back into another 401k with a new employer, should you ever want to do that. So you eliminaterepparttar 112589 possibility of usingrepparttar 112590 loan provision with those funds. While it is possible to borrow against an IRA, it’s more limited than borrowing against an employer 401k. Check with your tax preparer for details.

Rollover IRA: This type of IRA allows yourepparttar 112591 most flexibility. You may rollrepparttar 112592 proceeds back into a 401k plan if you want to utilize a loan provision. However, for tax reasons you should not make annual contributions to this IRA. If making annual contributions becomes important to you, simply open another contributory IRA.

Since Rollover IRAs are usually set up at a brokerage firm, you’ll have access to their entire universe of mutual funds. With this type of IRA, you can also employ an independent investment advisor to managerepparttar 112593 account for you. (Yes there is a cost for that, but an effective advisor will more than make up for that in greater returns than you would get without him or her.)

Most of my clients have found thatrepparttar 112594 investment results we've obtained with their personal IRAs were far superior to those yielded by their employer 401k plans or their personal investing efforts. This has been mainly due to a combination of better choices and a methodical approach to investing which has kept my clients inrepparttar 112595 market during good times and out of it altogether during severe declines.

Bottom line: Rollover IRAs offer opportunities to maximize benefits and provide flexibility not usually available with employer 401k plans.



Ulli Niemann is an investment advisor and has been writing about objective, methodical approaches to investing for over 10 years. He eluded the bear market of 2000 and has helped countless people make better investment decisions. To find out more about his approach and his FREE Newsletter, please visit: www.successful-investment.com.


Fighting Identity Theft

Written by James H. Dimmitt


Continued from page 1

2) Keep your Social Security number private. Do not have it printed on your personal checks or drivers license. Do not share it with anyone, including merchants, unless they can provide a good reason for having it. Once someone has your Social Security number they haverepparttar key to unlocking your identity and using it fraudulently.

3) Shred offers for pre-approved credit cards that you receive by mail. Dorepparttar 112588 same with any receipts that contain account numbers or your Social Security number. Identity thieves are not afraid to go “dumpster diving” in order to obtain your personal information.

Identity theft has becomerepparttar 112589 fastest growing crime because it isrepparttar 112590 most profitable crime. On average,repparttar 112591 loss from identity theft is about $18,000.00. Taking these precautions now can you save you from becoming another statistic inrepparttar 112592 fight against identity theft.

© 2004, http://www.yourfreecreditreportnow.com Author: James H. Dimmitt James is editor of "TO YOUR CREDIT", a weekly free newsletter. Subscribe to the newsletter by visiting http://www.yourfreecreditreportnow.com. He is also author of “Identity Theft - How to Avoid Becoming the Next Victim!” available at http://tinyurl.com/bc45


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