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Tip of the Day Get a Better Cell Phone Plan

Get a Better Cell Phone Plan - Cell phones are so popular today you can customize your plan to suit your needs and if you have not updated your cell...

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Roth IRA

Definition: An individual retirement account (IRA) that has special tax advantages.  The investor pays taxes upfront and it then grows tax free after that.

TeenAnalyst Advice: A Roth IRA has many tax advantages for people who are thinking about retirement.  The investor pays taxes up front and then the money can grow tax free.  They are able to take money out once they reach age 59 1/2.

To see the tax benefits, think of this.   You invest $100 into your Roth IRA.  You pay 30% in taxes up front so only $70 is actually invested.  But that $70 grows into $1000 by the time you retire and you get to take out $1000.  If you had a regular account, you would have to pay taxes on that $1000.  Paying 30% up front is $30.  But paying it at the end is $300!

 

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Definition of the Day Quote Size

Quote Size - Quote size are the number of shares being offered on the market for sale or, buying at a given bid price. There is no set price for a share of stock as this is stock that is up for auction and, bid. We are not just discussing...

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