Thursday, May 9, 2013

Personal Finance News Thursday 5/9

Phil's Personal Finance Tip of the Day:

Fund a Roth IRA and Fill it With These Stocks

By - May 9, 2013

Robert is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Investors are constantly under a deluge of financial advice. With so many options and different types of investment vehicles and strategies, it’s no wonder most individuals feel overwhelmed by the prospect of retirement saving. However, planning for one’s financial future is a pivotal task, the importance of which cannot be understated.

One option nearly all investors would be wise to take advantage of is the Roth Individual Retirement Account (IRA), which allows a person to contribute money each year, albeit not deductible from one’s taxes, that will grow tax-free until retirement.

In that vein, since all capital gains and dividends are tax-free within a Roth, it’s generally advisable to keep high dividend stocks in a Roth. With that in mind, here are some great candidates for a Roth IRA.

Enjoy years of tax-free dividends

Some of the market’s best blue-chip stocks pay dividend yields nearing 5%. While interest rates are at historic lows and the markets keep surging to new highs, it’s still possible to capture high dividend yields without resorting to speculative companies you’ve never heard of.

Several well-known and well-managed businesses, including Altria (NYSE: MO) and Lockheed Martin (NYSE: LMT) pay dividend yields very close to 5% annualized.

To read the entire article from /Motley Fool:
http://beta.fool.com/rciura/2013/05/09/fund-a-roth-ira-and-fill-it-with-these-stocks/33873/?source=eogyholnk0000001


Inspirational Quotes@Inspire_Us from Twitter:
Age is no guarantee of maturity. -Lawana Blackwell


Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com.

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