IRA and Roth IRA
If you are worried about your life after retirement, Roth IRA is here to make you feel a little better. The concept behind the traditional IRA is to allow workers (in the 1970s) to contribute a portion of their annual income, deduct it from their annual tax return, and pay the taxes on interest when they retire. From then on, workers found IRA’s to be very useful.
Although the Roth IRA has only been around for ten years, it has already helped hundreds of workers by growing into nice nest eggs. In fact, people in their 30s and 40s are already seriously thinking about their retirement and are already toying with the idea of IRA investing. With the recent economic condition, considering retirement and investment options is perfectly normal.
But before you start investing on a Roth IRA, there is one thing that you need to take care of – your debts. It would be wise to pay off all your debts first before you invest in any IRA, or at least keep them at a manageable level.
Investing on real estate is always a great idea, given that you pass all the requirements mortgage lenders have. Before you can get a mortgage loan, lenders will first sift through your history of borrowing and paying back what you owe. This information is filed under your credit report, which will help lenders to determine if you are creditworthy or not.
Based on your credit report, you will be given a credit score – a three digit score that falls between 300 to 850. The higher your credit score, the greater your chances of getting your mortgage loan approved. People with a credit score of at least 760 are considered prime candidates, while those hitting 620 and below are considered as subprime borrowers. However, if you have 580 credit score home loan will be given minimal perks and fewer loan options.
- Wiser Roth Investing For Those Looking for Great IRA Rates (2011taxes.org)
- Steps on How to Open a Roth IRA Account (2009taxes.org)
IRA Investing and Mortgage