It is this week’s Free Money Friday!

Students: Make sure you read the 51 Finance Tips for New Graduates and have a plan in place to manage your credit wisely before taking advantage of this bonus!

How to Get Your $20 Sign Up Bonus

1. Apply for the Discover Student credit card.
2. Make a purchase within 3 months of opening the account.
3. Get a $20 Cashback Bonus!

Discover Terms and Conditions

• No annual fee.
• To be eligible for the Discover Student Credit Card you must be a college student.
• Promotional award will be applied within 8 weeks.
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© My Dollar Plan

by: Jared Akers

“I have found the paradox, that if you love until it hurts,
there can be no more hurt, only more love.”
–Mother Teresa

It’s hard to imagine a worse feeling.  Sitting alone in my new apartment knowing my girlfriend of four years would rather be alone than to have me in her life.  I love her, and the reality of not having her in my life hurts like nothing I’ve ever experienced.

After crying for several months and missing a lot of work, I do something drastic.  I sell my prized guitar and buy an engagement ring.  A hopeless romantic, I pick up 63 long-stem roses, one for each day we’ve been apart.

It’s winter, there’s a foot of snow on the ground and I’m standing outside her (more…)

Over the years we’ve compiled so many tips for new grads (51+ as of last count), that I wanted to share them all again! Here’s a roadmap of all the financial tips for new graduates.

source: jessiejacobson

Finance Tips for New Graduates

• 6 Mistakes of New Earners and How to Fix Them: Earning your first “real” paycheck is an exciting time, but only if you handle it well. The younger you are when you start managing your money well, the better positioned you will be later in life. Take these and other money tips into consideration and you’ll be sitting pretty.
• 10 Financial Tips for New Grads: Many older adults look back and say the number one thing they wish they would have done differently was learned about money management while they were young. Here’s your chance to jump start your finances!
• 29 Money-Smart Tips for New Grads: Readers share their financial tips for new graduates, including stay out of credit card debt, start saving for retirement now, live frugally and plenty more great tips.
• Keep Your Eye on the Graduation Prize: Advice for celebrating in style…without breaking the bank! If you’re graduating…congratulations! If you know someone who is, give them a gift ahead of time by sharing this with them!
• 6 Job Search Tips for New College Grads: As graduation nears, here are some things to consider to make your search a success.
• Student Loans: Repayment Options: After graduation, you typically have a 6 month grace period before loan payments are due. Check out the differing options and which repayment might be best for your own situation.
• Secret Costs of Moving Out on Your Own: Perhaps you are graduating college this spring and will be moving out on your own for the first time, or are moving out alone for the first time in a long time. Here are common costs besides food, entertainment, and clothing that you will run across so that you can properly prepare.

Do you have new graduates in your life? What is the most important graduation message you plan to share with them?

Click here to leave a comment on this article.
© My Dollar Plan

When you leave your job for any reason, you usually have four choices regarding the retirement savings you hold in connection to that job:

1. Do nothing: Though some employers will not allow you to maintain your retirement account with them, many will allow you to keep it. If your employer will allow you to keep your account in force, you can continue to manage the investments within the account without any change or interruption. You cannot make additional contributions, however.
2. Transfer to a new plan: If you’re changing jobs and your new employer offers a retirement plan, you may be able to move your assets into the new plan.
3. Withdraw your assets as cash: If you sell and withdraw your assets, the regular withdrawal rules and penalties will apply. If you choose this option, your employer will also be required to withhold 20% of your account balance for tax purposes.
4. Roll over your assets to a Rollover IRA. This is probably your best choice since it allows you to maintain the maximum amount of control over your own account AND continue to make contributions.

What is a Rollover IRA?

A Rollover IRA is a type of retirement account into which you can transfer assets from an employer-sponsored retirement plan after you leave your job. Banks, some insurance companies, and other financial services firms offer Rollover IRAs but the easiest to use are the online brokerages like Scottrade, E*Trade, TradeKing, Charles Schwab’s optionsXpress and tradeMONSTER. They come in two varieties:

• Traditional Rollover IRAs: For participants rolling over assets from tax-deferred retirement accounts, such as regular 401(k)s, 403(b)s, or 457(b)s
• Roth Rollover IRAs: For participants rolling over assets from tax-free accounts, such as Roth 401(k)s

Though it’s possible to roll over a pretax retirement plan to a tax-free Rollover Roth IRA, doing so is a taxable event, which means you’ll owe taxes on any gains in the account at the time of the rollover. Due to these negative tax consequences, it’s best to avoid doing this type of rollover.

You may be able to do a “two step” rollover by moving your 401(k) into a traditional IRA and then converting your traditional IRA to a Roth IRA. You may be able to complete this process in multiple steps to avoid any tax implications so check with a qualified financial advisor.

Should You Use a Rollover IRA?

In most cases, it makes sense to use a Rollover IRA unless:

• You’re satisfied with your existing plan and your employer will let you keep it there for at least several years after you leave
• You find your current employer’s retirement plan satisfactory and you want to roll over the assets to that plan instead

Unless one of these two situations applies to you, rolling over your plan assets into a Rollover IRA is usually a good idea. A Rollover IRA can help you:

• Avoid taxes and penalties: With a Rollover IRA, you avoid the taxes and penalties you’d pay if you transferred or withdrew money from your account.
• Keep growing your money: Using a Rollover IRA is a seamless way to keep your retirement investments growing without interruption.
• Expand your investment options: Rollover IRAs usually allow you to invest in virtually any type of investment, from individual stocks to bonds to mutual funds, depending on the financial firm you choose. Any constraints imposed by your employer-sponsored plan will no longer apply.

Opening a Rollover IRA at Scottrade is EASY! Click here to get started.

How to Roll Over Your Existing Retirement Plan Account into a Rollover IRA

To set up a Rollover IRA, you need to take action before you leave your job. To do so, you must:

1. Set up a Rollover IRA account

Contact the financial services firm you intend to work with and ask about the forms and other documentation required to open a Rollover IRA. You’ll usually have to provide a copy of your most recent retirement plan statement. In most cases, the firm will offer to contact your employer to handle the rest of the rollover process for you. Even if they do, you should still follow the remaining steps.

2. Tell your current employer

Tell your employer that you intend to roll over your retirement plan. Give them the contact information of the firm where your Rollover IRA will reside, and tell them you want to perform a direct rollover rather than have them cut you a check for the balance of your account. If they insist on cutting you a check, make sure the check is made payable to your Rollover IRA provider—not to you.

3. If your employer issues a check payable to you (bad idea!)

Your employer will be required to withhold 20% of your balance, and you may be required to pay a 10% penalty when you do the rollover. To prevent this, ask your employer to cancel the check and make it payable to your Rollover IRA provider. If they refuse, you can avoid a 10% penalty as long as you use the check made payable to you within 60 days to fund a Rollover IRA. However, your employer will have already withheld 20% of your account balance for taxes. Usually, the only way to get that money back is to add that amount to your Rollover IRA with your own money for the time being, and then request a refund for those funds when you file your tax return. To qualify for this refund, you must roll over 100% of your account balance.

Scan the market to find investment opportunities based on YOUR criteria with Charles Schwab’s optionsXpress!

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Where do all the hours go?  We fill our days with activities, commitments and caring for others and often – very often forget ourselves.

Making sure you get some breaks to do something nice for yourself is of utmost importance in order to be a happy, positive and well-balanced mom.

“The mother is and must be – whether she knows it or not – the greatest, strongest, and most lasting teacher her children have.”                 -  Hannah Whitall Smith

Carving out some “you time” to refresh and relax away from caring for everyone else is the fuel that keeps us upbeat rather than beat up!  It is our responsibility to nurture ourselves so we can be the best we can be – not only for our children, but for our husbands.

It almost seems backwards to say that taking time away from your family can in fact benefit them, but it is true!

When you do things for yourself to nurture your mind, body and spirit, your whole family will benefit.

The biggest struggle is finding the time – that is the number one issue that needs to be tackled when you are trying to carve out time to care for your own needs. It’s challenging to find time to do non-child-related activities. We find ourselves so busy with the tasks of motherhood and managing household chores that we are often overlooked completely.  But as I share with other moms, no one is going to serve you a nice “chunk of time on a silver platter”.

You need to make it happen for yourself.

Here are some of my favorite tips to find time for you:

Use nap time effectively

Even if your children do not take naps, they can have a quiet time set aside each day.  Nap time is the perfect time to spend time your way.  If you like reading, writing, listening to music, exercising or have a craft hobby, this is a good time to pick up a book or headphones without having your children badgering you!

Try to avoid using this time to clean up the house or do other chores, if you must – take only 10 minutes to tidy up. You can also enjoy a bubble bath, a long shower,  drink a hot cup of coffee or  even take a short nap yourself (*gasp*).

Have a different sleeping schedule than your children

If your children sleep until late morning, then make it a habit to wake up early. I have found that getting up earlier than my family is my sure fire way to get more accomplished, even if it means I take a 20 minute nap in the afternoon to refresh. You get more time for yourself and I find that I can be better organized to meet the demands of my day. If your children go to bed early in the evening, you can stay awake until later to enjoy some “you time”.

Plan your meals

Take time to plan your meals for the week and grocery shop well. Make a list of needed items for at least one week and purchase them all in one visit to the grocery store. This is a tremendous time saver. You will not have to worry about having things for your recipes and you will save time which you can have for yourself.

Find child-friendly shops

Many stores now offer supervised playrooms for children while you go about your shopping, ticking off items on your shopping list. When my kids were younger they LOVED going to IKEA to play in the ball pit!  Now there are many stores that offer a place to drop your children while you shop. One of my favorites is a local chain, Fred Meyer.  They have a play area you drop your kids at and have a coffee bar located inside the store.  I can drop my little one and go grab a coffee and get some peace and quiet.  I love this little secret!

Team up with other moms

You are not the only one who has to face these challenges of motherhood – who else can relate – other moms.  Team up with a few moms with similar aged children, plan outings together, or just have kids over for a  play date in your home.  By sharing the responsibility of caring for the children you will find mommy time for all of you! You can pick dates for each of you to look after the children, while the others get time off to spend doing whatever they like.

Try multitasking

You can mix “being mom” and “you time” at the same time.  Take your children out for a walk in the stroller while listening to an audio book on your iPod.  Or pop them in a wagon for a walk around the neighborhood, stopping at the local coffee shop for a treat. Do you have a bike trailer for your little one(s)?  Look online at places like Craigslist or Trading Cradles to find a used one and get moving.  Kids will love getting cozy inside with a snack, drink and a few books or even their own story on an MP3 player. You get some exercise and fresh air and your kids get an adventure too!

Have a “Me Menu”

Often times when I ask moms what they enjoy doing, they are left speechless.  It seems they have forgotten the things that brought them joy or activities they once enjoyed doing.  Take some time to jot down ideas of what you would like to do if you had 5 minutes, 15 minutes, 30 minutes, an hour and several hours.  Keep this list handy so that if you happen to get 15 minutes of time, you can look at your list and make that time useful for you!

Spending time with your children is certainly one of the greatest pleasures of motherhood, but it is also important to spend some time relaxing and de-stressing yourself so that you can be the best mom you can.

How do you get time for yourself?

Photo Credit

Finding Time for Mom is a post from: The Confident Mom

Have you signed up for - "The Opening Act - Becoming a Calm, Cool and Confident Mom."

As with so many other things, enjoying a less expensive relocation is all about planning and patience. The willingness to do a lot of the work yourself helps too. Learn a few excellent strategies for saving money while moving below.

Sell or Donate Unneeded Things

The fewer belongings you have, the less expensive your move is going to be. With that in mind, you should do what you can to unload unneeded things in the weeks and months leading up to your move.

As far as nicer (unneeded) things go, you should try to sell them. You can use the money that you earn to finance your relocation. These strategies won’t just save you money; they will make your move easier and allow you to get a nice, fresh start at your new place.

Get Free Boxes

People are often taken aback by how expensive fresh, new cardboard boxes can be. After all, the only time they’re generally needed is during a big move. Before you fork over a bunch of money for moving boxes, try to find as many free ones as possible.

Solicit friends and relatives for unneeded boxes. Check with local stores to see if they have any handy, too. Don’t forget to check sites like Craigslist and FreeCycle. People are often anxious to unload their old boxes after moving. When your move is complete, you can return the favor.

Do Your Own Packing

As tempting as it may be to hire someone else to pack your belongings, it’s just one more thing that adds to the cost of moving. The key here is to start packing early. There are sure to be many things that can be packed long before moving day arrives.

Try to use inexpensive packing materials like old newspapers as much as possible. Things like bubble wrap can really add up over time. Be as organized as possible. Label each box so that you will have an easy time unpacking later.

Get Multiple Quotes

Do-it-yourself moves are the cheapest options. If you go that route, you’ll need to rent a moving truck. Don’t just go to the closest truck rental company and choose the first one you see. Request quotes from at least three different places. The same thing goes for moving companies.

If you need to hire movers, solicit quotes from at least three of them. You’re sure to be amazed by the huge pricing differences that you will encounter. Don’t just base your decision on pricing alone, though. Read the fine print to ensure that you get the level of quality that you need.

Hire Friends and Relatives to Help on Moving Day

As long as you’re willing to return the favor yourself someday, you should try to round up as many friends and relatives to help on moving day as possible. If cash is tight, you could always try bribing them with offers of icy cold beverages and nice meals.

Plan Ahead to Save Cash

The people who get away with spending the least amount of money on their moves are the ones who plan everything ahead of time. If you wait until the last minute to make the necessary arrangements, you are going to pay dearly for it. Furthermore, waiting too long puts you at risk of not having the help or equipment you need when the time comes. Moving trucks are often booked solid for weeks in advance, and hiring a moving company at the last minute is just about impossible. In addition to saving money, planning ahead will make the experience a lot less stressful. Before you know it, you’ll be settled into your new home with money to spare.

Do you want a deeper and more enjoyable life?

I have three simple, yet powerful things you can do to drastically enrich and expand your happiness.

These are things that anyone can do.

Yet most people neglect them.  They fail to understand the power of these three simple things.

Of course, you won’t be one them because you’re reading this!

What You Can Do to Enrich and Expand Your Life

Many people fail to recognize that most of our enjoyment and fulfillment in life comes from the simplest things.

They waste their time chasing money, power and prestige when, in fact, most of our happiness is derived from plain, straightforward strategies.

Concentrating on the right things will enrich your experiences.  It will enlarge your world.  And it will make you happier.

Here are three extremely powerful things you can do to enrich and expand your life:

1.  Focus on the Things That Matter

We live in a busy, noisy world.

We worry incessantly about everything.

We have investigative reporters endlessly uncovering one troublesome matter after another.

Our employers or clients are constantly demanding we do more with less.

We are badgered by guilt, stress and non-stop activity.

Bottom line, our attention is pulled in a million directions and it drains us.

We get confused and chase after hollow things.  ”The packaging may glitter and sparkle, but there’s nothing inside but emptiness,” says Ken Wert at Meant to be Happy.

Ken recently wrote an article I found very insightful called 4 Things That Truly Matter.

When you stop and define what you value, you can then refocus.  You can redirect your time, energy and resources to those key areas where you find meaning, opportunity, love, joy and success.  That’s how to enrich your life.

2.  Slow Down and Savor the Good Times

Again, because we live at a breakneck pace, we fail to really soak up the good times.  They whiz by with barely any acknowledgement.

In addition, we often over-complicate things so much that it is impossible to derive any enjoyment from them.  Take the holidays, for instance, in our desire to make them grand, we bleed all the pleasure right out of them.

“By taking the time to savor both ordinary and extraordinary moments in your life, you will stay rooted to what you truly value: your relationships, your health, your accomplishments, and nature,” says Stephen Borgman.

Stephen reminds us of the value of slowing down and savoring the good times in Here’s a Secret for Living Life Now.

I think we can all learn a great deal from Stephen’s suggestions.

Savoring the good times is grossly under-valued in our culture.  Instead, we like to reward people for busyness.  How backward is that?  A big, rich life comes from savoring the moments.

3.  Appreciate the People that Make It All Worthwhile

“We are social beings, and for us to truly experience life, we have to find ways to reach out to those we love and include them in our lives,” says Bryan Thompson.

I totally agree with Bryan that It’s Time to Thank the People Who Made Your Moments Unforgettable.

When was the last time that you told those you love that you deeply value them?

Heck, when was the last time that you stopped long enough to even think about it?

The people in our lives make all the difference and it goes beyond just our immediate families.  Your friends, co-workers and extended family have a lot to do with the quality of your life.

I encourage you to take a minute to express your feelings for them this week.

You’ll be amazed at how this will enrich and expand your life.

Do These Things Today

Here’s the deal.  For what I’ve said today to make any difference in your life, you have to take action on it.

I want to prod you to act upon these three things.  Incorporate them, in at least some small way, into this day.

When I say this day, I mean today, not tomorrow.  By tomorrow, you will have forgotten all of this unless you see some positive result from it today.

Try these things on for size.  I think you’ll be pleased at the results you get.

Let me know what you think.  I’d love to hear from you!

Photo: Copyright PhotoXpress.com

Save money on travel by downloading free apps.

source: Das Telefonbuch

Free Travel Apps

1. GasBuddy. Ideal for road trips, this app lists all the gas stations near you, the current price per gallon, and directs you how to get there. With gas prices soaring, you can’t afford not to give this app a try.
2. Hotels.com. Whether it’s a last minute deal or something planned in advance, the hotels.com app is a great choice. It finds the cheapest hotel rates near you and helps keep track of your reservations.
3. Happy Hour. Looking for a great happy hour special? Regardless of the time of day, the app lists all restaurants and bars near you that are offering deals right now. Grab drink specials, half off appetizers, and other great dining bargains.
4. TripAdvisor. The TripAdvisor app helps you find hotels, restaurants, and things to do near you and helpful reviews from fellow travelers so you’re not wasting your money on something that leaves something to be desired.
5. Beat the Traffic. Whether traveling across the country or simply to work every morning, this traffic fighting app is a must. The app highlights the area around you either in green, yellow, or red depending on the current traffic volume. It alerts you to accidents, construction, and even predicts how the traffic will be in the future. Avoiding the delays will save money on gas and not waste your precious time.
6. Kayak. This handy app compares all of the great deals from other sites so you don’t have to search them all individually. Find the low price on flights, hotels, car rentals and also manage your trip.
7. Groupon. Choose any city you’re planning on traveling to to view fantastic deals. Grab bargains on restaurants, bars, spas, entertainment, attractions, and more. The company also teamed up with Expedia to offer great Groupon getaway offers such as hotel stays and fabulous resort packages.
8. Coupons. The Coupons App finds coupons for everything around you. When you’re on the road, you’ll be able to find coupons for places to grab a bite or a huge variety of stores to shop in.
9. Mint.com. It’s easy to lose track of your budget when you’re on vacation. The Mint.com app allows you to be organized and keep track of all of your finances, budget accordingly, and manage your money so you don’t come home from your trip broke.
10. Currency Converter. Anytime you’re traveling abroad, this currency calculator app is a must. The app ensures you know exactly how your money converts so you’re paying the correct amount and not being taken advantage of.
11. MapQuest. Saying the MapQuest app gives you great directions is an understatement. Whether you’re walking or driving, you can pick if you’d like the fastest or shortest route. Choose if you’d like to avoid highways, toll roads, seasonal closures, and unpaved roads. Besides the distance and time in between each direction, you’ll also get specific instructions on how to know if you’ve went too far It also shows highlights areas of interest like hospitals, coffee shops, movie theatres, schools, parking, hotels, gas stations, and restaurants.

Happy travels!

More Travel Tips

• Budget Travel Tips
• Best Travel & Hotel Rewards Credit Cards
• How to Save Money on Purchases While Traveling Abroad
• Get the Most Bang for Your Frequent Flyer Miles

Click here to leave a comment on this article.
© My Dollar Plan

Though Roth IRAs permit tax-free growth and withdrawals, they’re not necessarily the best choice for everyone. To help decide between any tax-deductible and tax-deferred plan, such as a Traditional IRA and its tax-free Roth version, consider your current tax bracket and your expected tax bracket at the time you plan to withdraw the funds:

• If you expect your tax bracket at withdrawal to be roughly the same as, or higher than, your current tax rate, you should probably choose the Roth version of the plan.
• If you expect your tax bracket at withdrawal to be significantly lower than your current tax bracket, you should probably choose the standard tax-deductible/tax-deferred version of the plan.

Though helpful as a general guideline, this rule of thumb doesn’t apply to all situations. Even if you expect your tax bracket at withdrawal to be much lower than your current rate, you might still consider a Roth for these reasons:

• Estate planning: Roth IRAs pass to beneficiaries without incurring a federal income tax liability, though they may be subject to estate taxes.
• Control of assets after retirement: Only Roth IRAs allow you to retain complete control over your retirement account assets past age 70 1/2, with no required minimum distributions.
• High income: Even if you earn too much to qualify for a Traditional IRA deduction, you may still qualify to contribute to a tax-free Roth IRA.

Converting a Traditional IRA to a Roth IRA

The IRS allows you to convert Traditional IRAs to Roth IRAs with no penalties. Formerly there was an income limit of $100,000 but that limit was allowed to expire. However, if your income exceeds $183,000, you may be able to convert a retirement plan to a Roth IRA but you won’t be able to make any new contributions.

One catch does apply: when you do the conversion, you’ll have to pay taxes on any gains in the Traditional IRA, even if you’re simply moving those assets into your new Roth IRA.

Converting a retirement plan to a Roth IRA at Scottrade is SUPER EASY!

Links to products or services may be affiliate links. See my disclosure policy on the site or on my About page.

75 real life stories of everyday giving from our sister site, Makes Me Think, that will put a smile on your face and inspire you to pay it forward.

1. Today, when I landed at J.F.K. for a business trip, I turned on my phone and was inundated with several voicemails and text messages from family and close friends back in Seattle. “Call home. Your mom had a severe stroke and is currently in intensive care,” read the first text message to pop-up on my phone. My boss was with me, told me she’d handle things herself, and insisted that I catch the next flight back home. As I stood in line at the ticket counter, talking to my brother about my mother’s condition, crying, and explaining that I was going to try to make a flight that leaves in 30 minutes, the twelve people in line in front of me overheard my conversation and let me skip to the front. Then after the Delta rep quickly issued me a ticket, she walked around the counter, handled me a box of tissues, and before I had a chance to react, gave me a big hug. I made my flight. And my mom is now in stable condition. MMT
2. Today, at the local convenience store where I work an elderly man with a guide dog came in, went to the aisle with the greetings cards, picked up a card, held it up extremely close to his face, and struggled to read it. Just as I was about to walk over to help him, a big truck driver asked him if he needed assistance reading, and then proceeded to read him almost every single greeting card out loud until the elderly man smiled and said, “That’s perfect! My wife will love that one!” MMT
3. Today, I put an ad up on Craigslist stating that I was looking for a cheap laptop for my first semester of college (I’m 18 and live by myself, so money (more…)

   
   

Roth IRAs are one of the greatest wealth vehicles that has been made available to the average person in decades. By using after tax dollars to make your contributions, your growth and earnings are not taxed when you withdraw them after age 59 1/2!

Roth IRAs are similar to traditional IRAs, but with three major differences:

• All Roth IRA contributions are made with after-tax dollars.
• Investments in Roth IRAs grow tax-free and are not subject to tax upon withdrawal.
• Since Roth IRA contributions are made with after-tax dollars, they don’t qualify for tax deductions.

Roth and Traditional IRAs differ in a few other significant, but more complex, ways. The following table breaks down all the important traits of Roth IRAs, including all the specific features that distinguish Roths from Traditional IRAs.

Key Traits of Roth IRAs

Tax benefits

You never have to pay taxes on any investment gains or withdrawals if:

• Your account has been open for at least five years
• You withdraw at age 59 1/2 or later
• You use the money to purchase your first home
• You become disabled or die

Free trading tools. Real-time research. $7 trades. Open a no-fee Roth IRA at Scottrade!

Eligibility

Plan participants can be any age. Singles with earned income below $110,000 ($173,000 for married joint filers) can make the full contribution plus the “catch-up” contribution, if applicable. Contribution limits decrease for singles with $110,000–125,000 of earned income ($173,000–$183,000 for married joint filers). Singles or couples with income above these ranges can’t contribute to a Roth IRA.

Vesting

All contributions vest immediately.

Enrollment deadlines

A Roth IRA for a given year must be set up by April 15 of the next year.

Contribution deadlines

All contributions to an IRA for a given year must be made by April 15 of the next year.

Contribution limits

Up to $5,000 per year or, if you’re age 50 or older, up to $6,000.

Contribution sources

Earned income (salary, commissions, other work-related sources, alimony).

Withdrawal penalties

Since Roth contributions are made with after-tax dollars and don’t qualify for tax deductions, no penalty applies to early withdrawals equal to the amount of your original contributions. Any gains realized by early withdrawals are subject to income tax and a 10% penalty, however.

Transfers

Most plans can be transferred to other Roth (after-tax) retirement plans.

Borrowing

Loans from Roth IRA accounts are not permitted.

Beneficiaries

You can designate primary and contingent beneficiaries. Roth IRAs are the only IRAs that can be passed on income tax–free to beneficiaries.

Required minimum distributions

Roth IRAs have no required minimum distributions.

Fees and minimums

Annual fees range from $0–50. Minimums range from $0–25, depending on the plan provider. However, Scottrade has no fee IRAs and you can easily use them to purchase commission free exchange traded funds.

Links to products or services may be affiliate links. See my disclosure policy on the site or on my About page.

Employer Options

At my work, however, we have a new option. I have a 457b plan (much like a 401k, but you can begin withdrawals when you stop working, rather than waiting until the magical age of 59 1/2). I chose this over the 401k because of the ability to withdraw, without tax penalty, your balance if you ever leave service. You don’t have to wait until the full 401k age. And, you have the same contribution limits as the 401k, much higher than the Roth IRA.

My employer has offered a Roth version of the 401k, but again, I didn’t want the age limitation. Now they have the Roth option for 457b accounts. I’m certainly taking advantage of that by putting future contributions into a Roth 457b plan instead of the traditional 457b plan.

Should I Convert My Account into a Roth?

Here’s the weary query I put to you; should I convert my current 457b balance into a new Roth 457b account? Just like converting a traditional IRA to a Roth IRA, you have to pay taxes on the entire balance. On the plus side, there is no penalty to be paid.

So what do you think? Here are my options.

Option 1: Leave the account as is.

I could leave the money I have in my 457b, and just put future contributions into the new Roth 457b. The pro is that I don’t have to worry about paying a tax on a rollover; on the other hand, the money in the old 457b account will be taxable when I withdraw the funds in the future.

Option 2: Make the rollover, and pay the piper his due.

This is the option I’m leaning towards, but it’s definitely going to cost me. With a total of about $20,000 in the account, my employer will withhold about $7,500 for taxes (about 35%). After I do my taxes next year, the actual taxable amount will be closer to $3,000. Still, that’s a huge chunk of change. On the other hand, when I retire I won’t have any taxes to pay on withdrawals.

What would you do?

So I leave this question for you, readers: Which option would you choose? This is definitely an open question, with many variables missing, so I will give you a little more info. I’m 30-35 years old, and will be able to retire from my government job at 2/3 of my salary at the age of 55-60. I do not plan on working after retirement, and I plan on travelling a lot afterwards. I shouldn’t have any debt at retirement, except for a possible car payment. Any other government workers out there with this option?

More Retirement Planning Options

• Roth IRA Conversion Strategy to Avoid Taxes
• Should You Do a Roth Conversion?
• Can You Have a 401k and an IRA at the Same Time?
• Unconventional Roth IRA Strategy to Lower Tax Bill

Click here to leave a comment on this article.
© My Dollar Plan

You are absolutely a masterpiece.  Everything about you adds up to brilliance.

If you can’t acknowledge this, then you are selling yourself short.

You need to embrace your worth.

Perhaps you haven’t lived up to your full potential yet, but that doesn’t mean that you can’t.

Accepting just how awesome you really are is a great first step toward a more amazing and fulfilling future.

The Truth About You

You are like a treasure that has been hidden in a closet for decades.

You have art in you that no one has had the opportunity to fully appreciate.

You keep it locked up.

I’m here to tell you that it is time to let it out.  The world needs to see what a masterpiece you are.

You are valuable.  You are priceless.

You have a unique combination of talent, emotion and personality that the world, your community and your tribe is waiting for.

Whatever Moves You, Needs You

So, how can you show the world who you really are?

You apply your full set of gifts to whatever moves you.

Ask yourself these questions:

• What is it that I am deeply passionate about?
• What really gets me excited and motivated?
• What is it that am I doing when I totally lose track of time?
• What makes me the happiest?

By the way, if you aren’t sure how to answer these questions, then I’d highly suggest that you check out Discover Your Passion.

Anyway, your genius is most needed where you are most moved.

It is like putting together a puzzle.  Your job is to find the pieces that fit together perfectly and then voila!  A masterpiece is revealed.

Until you apply yourself to the right purpose, your greatest strengths remain hidden.

That’s why it is so important that you find the thing that moves you.  That is where you will shine.

Your masterpiece qualities will finally be unveiled.

Assessing Your Value as a Masterpiece

It is often said that masterpieces are priceless.  They are so valued and beneficial that they surpass what money can buy.

Why is that?

What makes a masterpiece (like you) so valuable?

Here are a few reasons that masterpieces are treasured:

1.  Inspiration

The world desperately needs inspiration.  Living as the masterpiece that you are, you will serve as a role model to others.  You will demonstrate that it can be done.  You will arouse, enliven and provoke others to also seek their purpose.  This alone is priceless.

2.  Vision

A masterpiece expands our vision.  It enlarges our world.  It clarifies reality and boldly pushes us beyond what we believe is possible.  When you invest all your talent in whatever moves you, you will naturally define a vision for others to follow.  A clear and motivating vision is a treasure beyond measure.

3.  Sense of the Infinite

A masterpiece gives us a sense of the infinite possibilities that exist in our world.  What is impossible anyway?  As a masterpiece, you will challenge others to believe the impossible is obtainable.  You will push them beyond the limits of what they believe they can achieve.  You will stretch their idea of what reality can hold.  Expanding the limits of human achievement is a rare and incalculable value to humanity.

4.  Perpetuation

Masterpieces create a legacy that is passed down for ages.  What will you pass along to your children?  As a masterpiece, you will not only give your family, but many others as well, a lasting, priceless heirloom that will be perpetuated for decades and beyond.  You are going to bestow some legacy upon your family.  Why not make it a masterpiece?

5.  Awe

Finally, masterpieces always leave people in awe.  As a masterpiece, you will astound others with your accomplishments and benevolence.  Your life will serve as an example to others.  Your words will be treasured and passed along.  Your life will be revered.  This awe will catapult others to follow in your footsteps creating lasting change.  What a rich contribution you will make!

Live as the Masterpiece You Are

I invite you – no more than that – I implore you to find what moves you because that thing desperately needs you.  It needs your unique combination of talents, personality and insight.  It needs you, the masterpiece, to step forward and unveil all that you are to the world.

Your purpose is calling.  Will you answer?  Will you seek it out?  Will you become the priceless masterpiece we all need?

Don’t keep it hidden any longer.  Let your masterpiece shine!

Photo: Copyright PhotoXpress.com

Traditional Individual Retirement Accounts, called Traditional IRAs (or often just IRAs for short), are retirement plans that you can set up on your own, whether or not you participate in other, employer-sponsored retirement accounts.

How Traditional IRAs Work

Unlike 401(k)s, 403(b)s, and 457(b)s, traditional IRAs are retirement accounts that you set up directly with a bank, a financial services firm, or an online brokerage. Even though you’re not tied to an employer with IRAs, they do have various contribution limits based on your annual income. Here’s a quick breakdown of how they work:

You set up an IRA account: The setup process usually involves filling out a few simple forms and providing an initial deposit of $500–1,000, though some IRAs have initial deposit requirements of $25 or less. I set mine up with Scottrade.

You make contributions: You can contribute to your account at any time during the year up to the allowable limit and before the annual contribution deadline. Certain contributions can be tax-deductible, though restrictions apply (see Key Traits of Traditional IRAs below).
Your investments will grow tax-deferred which means that you don’t pay taxes on investment gains until you withdraw your assets, either after age 59 1/2 or for other qualified exceptions.

You withdraw your money after age 59 1/2: Any investment gains that you withdraw after age 59 1/2 are subject to income tax based on your tax bracket at the time at which you make the withdrawals.

$7 Online Trading. Free trading tools. Real-time research. Join ME and open a no-fee IRA at Scottrade today!

Key Traits of Traditional IRAs

Tax benefits of traditional IRAs

Contributions are tax-deductible unless you’re eligible to enroll in an employer-sponsored retirement plan and your 2012 income exceeds $56,000–66,000 (for single filers) or $90,000–110,000 (for married couples filing jointly). If you have income within these ranges, you may qualify for a reduced deduction. If you’re not eligible for an employer-sponsored plan, you can deduct your IRA contributions regardless of your income level. Once you make contributions, they grow tax-deferred until withdrawal, when taxes become due.

Eligibility with traditional IRAs

If you’re under age 70 1/2, you can set up a Traditional IRA as long as you have enough earned income that year to meet the minimum initial contribution requirement.

Vesting with traditional IRAs

All contributions vest immediately.

Enrollment deadlines for traditional IRAs

A Traditional IRA for a given year must be set up by April 15 of the following year.

Contribution deadlines for traditional IRAs

All contributions to an IRA for a given year must be made by April 15 of the next year.

Contribution limits of traditional IRAs

Up to $5,000 per year or, if you’re age 50 or older, up to $6,000.

Contribution sources of traditional IRAs

Earned income (salary, commissions, other work-related sources, alimony).

Withdrawal penalties of traditional IRAs

A 10% penalty applies to withdrawals made prior to age 59 1/2. Exceptions include death, disability, higher education expenses, and the purchase of a first home.

Transferring a traditional IRA

Most plans can be transferred to other Traditional IRAs or other (pret-ax) retirement plans.

Borrowing from a traditional IRA

Loans from IRA accounts are not permitted.

Beneficiaries in a traditional IRAs

You can designate both primary and contingent beneficiaries.

Required minimum distributions of traditional IRAs

After 70 1/2, you’re required to begin withdrawing certain minimum annual amounts as of April 1 of the year after you turn 70 1/2.

Fees and minimums of traditional IRAs

Annual fees range from $0–50. Minimums range from $0–25, depending on the plan provider. However, Scottrade has no fee IRAs and you can easily use them to purchase commission free exchange traded funds.

Links to products or services may be affiliate links. See my disclosure policy on the site or on my About page.

While not all CD rates are currently worth it (for instance I’m not advocating using a CD when you’re getting a better rate on your on-line saving account) some are and it helps to do the math. For an example I’ll use actual rates and penalties that I chose when moving some money to a 5 year CD last year. (rates and penalties are real – dollar amounts fictional for nice roundness) I’m also using straight interest rather than compound for simplicity.

My CD Story

Last year I had $10,000 in a savings account earning 1%. This is $100 / year. My local credit union was offering a 5 year CD at 2.5%. This is $250 / year. The penalties for this CD are 3 months of interest if you’ve held it for a year or less and 6 months of interest if you’ve held it for more than a year. For current rates, you can check out the CIT Bank CD Rates to achieve your goal.

The Breakeven Point

What I look for in CDs is my breakeven point. This is the point at which if I hold on to the CD long enough it will have been worth taking out because it would equal what I was making in the savings account. Anything beyond the breakeven point is extra $.

How It Works

For example if I held onto it for 3 months I would have $0 in interest (3 months interest – 3 months interest penalty). This obviously would not have been worth it because I’d have been making money if I left it in savings. If I held onto it for 5 months I would get 2 months worth of interest (5 months interest – 3 months penalty). 2 months interest = $10,000 * .025 * 2/12 = $41.67

What would I get if I’d kept the money in my savings account for 5 months? $10,000 * .01 * 5/12 = $41.67. This is the same as the CD. So as long as I kept the CD for 5 months I would breakeven. If I kept it for longer I would come out ahead.

But wait – what about the increased penalties after 1 year? We need to check this out as well so we’ll look at the worst case – 13 months. If I cashed out the CD after 13 months I would get 7 months of interest (13 months interest – 6 months penalty). 7 months interest = $10,000 * .025 * 7/12 = $ 145.83.

What would I get if I’d kept the money in my savings account for 13 months? $10,000 * .01 * 13/12 = $108.33. So I’d still come out ahead with the CD even when the penalty increased.

I knew I could hold the money in the CD for at least 5 months (though probably not 5 years) so I made the move. But you might be thinking to yourself “Why bother? It’s only a point and a half difference. 2.5% is still low.” If you keep $10,000 at 2.5% for 5 years you’ll have $1,250 vs. $500 at 1% savings ($750 more). I know that I can move out of the CD anytime if interest rates move up because I’ve already crossed the breakeven point. So don’t be scared about the long term commitment of CDs. Your only real commitment is the breakeven point. Everything after that is just extra money.

Epilogue

What has happened in the 8 months since I’ve moved my money? My savings account interest has moved down 2 times. It’s now at 0.8%.

More Information about CDs

• Create CD Ladders for Short Term Money Needs
• Unique CD Strategy to Lock in Higher Rate
• Are CDs Obsolete?

Click here to leave a comment on this article.
© My Dollar Plan

Tackling this daily task in the Weekly Household Planner:

Exercise

We all know how much better we feel when we get a little exercise.  Not only do we have more energy, but we sleep better and our mood tends to even out.  Our bodies crave movement, so if you are not tending to your body – here are a few tips to get you back on track to checking off that “exercise” task each day.

In-Home Workouts

If you can’t get outside the house for any extended period of time, then you need to make the most of what you got!  What can you do around the house that you would find ‘somewhat’ enjoyable (I use the word ‘somewhat’ because some of us just plain hate exercise – even though we know it is good for our bodies!)

DVD’s – a few of my favorites are Jillian Michaels 30 Day Shred.  Choose between 3 fitness levels for a 20 minute workout that is guaranteed to kick your booty!  I love this workout – quick, simple and before you know it you’re done.

Wii Fit – I have to admit that I have never used our Wii Fit, in fact no one was using it at our house so I sold it! LOL  – but I know a lot of moms who use this and get a good workout in and are able to monitor their progress.  This can be fun to do with your kids too.

Treadmill – Yes, this is a luxury that only a few can afford.  If you belong to a gym and have found it hard to make it to the gym, then it may be time to turn in that membership and get an ‘in-home’ fitness machine to make it easier to fit in a workout.  When we became foster parents and knew our schedule would be limited taking care of little ones in our home, we ended our gym membership and purchased a treadmill.  This was one of the best decisions we’ve made.

Here are a few more ideas on getting fit in your home.

Get Outside

Walk – get out and walk!  Even if it is only for 20 minutes, it will refresh you and change your scenery.  If you have little ones, get them to come along too.  Either find a place to allow them to run around or pop them in the stroller and go.  When my kids were much younger I would go to the high school track and walk while they played in the middle grassy area.  I could keep my eye on them as I walked around and they had a blast with all the room to kick balls, play tag or have a picnic.

Consistency

This is perhaps the biggest challenge facing us all when it comes to working out. Staying consistent, especially with the ever-hectic lifestyle accompanied with having kids – our lives are busy.  But you deserve the time you need too! Try to set aside the same time everyday for your exercise.  If you are a morning person, get it checked off first thing.  If you need to carve the time out in the afternoon, make it happen.  It won’t magically appear – you’ll need to schedule it in just like you would any other appointment.

How do you fit exercise in each day?

Photo Credit

Weekly Household Quick Tip is a post from: The Confident Mom

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In the end, we only regret the chances we didn’t take, relationships we were afraid to have, and the decisions we waited too long to make.

The things you didn’t do when you had the chance.  That priceless relationship you neglected.  Those important words you left unspoken…

Every one of us has experienced feelings of regret.  But it’s not too late to set things straight.  We’re still here breathing.  Right now we have an opportunity to change our future.  Right now we can choose to erase regret from our later years.

Here are nine things no one wants to regret when they’re older, and some thoughts on avoiding these regrets:

1.  Not spending enough time smiling with the people you love.

You’ve heard the saying, ‘The best things in life are free.’  Well spending quality time with family and friends, enjoying the antics of a pet, seeing your child smile, experiencing intimate and heart-felt moments with your significant other – these times are precious and free.

Don’t get so caught up in the rat race, working 50+ hours a week, to the point where you are too stressed and exhausted to enjoy your closest relationships.  By simplifying your lifestyle and making conscious choices along the way, it is possible to live on less money, and thus work fewer hours and enjoy more of what matters most.

As we get older, fun is often underrated.  With all of our responsibilities, fun seems like an indulgence.  It shouldn’t be.  It should be a requirement.  When your work life is busy, and all your energy is focused in that arena, it’s all too easy to find yourself off balance.  While drive and focus is important, if you intend to maintain happiness and peace in your life you still need to balance in the soccer games, the family dinners, the intimate dates with your significant other, etc.

2.  Holding a grudge and never forgiving someone you care about.

We’ve all been hurt by another person at some point – we were treated poorly, trust was broken, hearts were hurt.  And while this pain is normal, sometimes it (more…)

My mom and are having a lot of fun sharing the best Amazon.com deals over at our new site, Jungle Deals & Steals. In case you missed them, here are some of this week’s hottest deals that are still available!

{Click here for the full list of current deals.}

Kindle

• FREE Kindle Books Roundup {5/13/12}
• FREE Kindle Games: Every Word, Pixel Perfect Puzzles + More
• Kindle Books $3.99 or Less {Through 5/31/12}

Diapers & Wipes

If you’re not currently a member, sign up for a 3-month trial of Amazon Mom with Amazon Prime to save an extra 15% on diapers and get FREE two-day shipping!

• Pampers Baby Dry Diapers As Low As $0.13/Diaper
• Seventh Generation Chlorine Free, Unscented Baby Wipes $0.04 Each

Toys

• Neat-Oh! ZipBin Dinosaur Medium Play Set $18.45
• LeapFrog Learn & Groove Musical Table $33.49
• 80-Piece Professional Art Set $17.96

Grocery

• Lavazza Crema e Gusto Italian Ground Coffee (8.8-Ounce Bricks) $3.61 Each
• Kellogg’s Raisin Bran Cereal $2.22 Each
• Annie’s Homegrown Gluten Free Cocoa & Vanilla Bunny Cookies (6.75-Ounce Boxes) $2.37 Each
• Slim Jim Original Smoked Snack Sticks (0.28-Ounce Sticks) $0.18 Each
• Raw Rev 100 Variety Pack $0.72 per Bar
• Clif Bar Energy Bar Variety Pack (2.4-Ounce Bars) $0.96 Each

Health & Personal Care

• Lansinoh Disposable Nursing Pads $0.10 Each
• Cetaphil Gentle Skin Cleanser For All Skin Types (16-Ounce Bottles) $8.81

Household

• Lysol Lemon and Lime Blossom Disinfecting Wipes $0.04 Each
• Cascade Fresh Scent ActionPacs Dishwasher Detergent $0.17 Each
• Glad Tall Kitchen Drawstring $0.19 Each

Media

• Pre-Order NCAA Football 13 $44.99
• LittleBigPlanet for Playstation 3 $16.50
• Songs by the Best Vocalist $0.69 Each

Make sure you don’t miss any deals! Subscribe now by email or in a feed reader.

Amazon Deals: Kindle Freebies, Diaper Deals + More is a post from Life Your Way

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• Amazon Deals: Kindle Freebies, Diaper Deals + More