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Tip of the Day Make Your Home More Energy Efficient

Make Your Home More Energy Efficient - There are many ways to save money around your home. These can range anywhere from insulating your hot water tank to prevent...

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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 Little Board

Little Board - Little Board is a slang term referring to the American Stock Exchange (AMEX). It also described any exchange that is not the New York Stock Exchange (NYSE). Little board was to refer to the New York Consolidated Stock and Petroleum Exchange, which closed its doors in the...

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