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Today’s question from you: Rolling over a 401k to Roth IRA:
Bottom Line: Today’s question from a listener / Cheat Sheeter pertains to rolling over a 401k from a previous employer (in his case it’s two 401k’s). The question was if it was a good idea for him to roll over two 401k plans from previous employers into a Roth IRA. It’s a great question. Let’s break this down:
First why consider the Roth vs. the Traditional IRA?:
Next what you need to consider before rolling over a 401k to a Roth IRA:
Just to add to the consideration is the fiscal cliff. We don’t know if the current status of 401k rollovers will remain into next year. 401k tax status has been a topic of conversation within the fiscal cliff discussions. While it’s unlikely we’ll see big changes to the tax treatment of 401k plans – there is risk that policy changes impacting 401k rollovers could occur.
In summary – if you can handle the taxes with the 401k rollover to the Roth IRA, I do think it’s a good idea to do so.
Disconnect between gold coin sales and gold prices:
Bottom Line: Huge demand for gold coins doesn’t equal higher gold prices necessarily…
Last week I mentioned that November saw a huge spike in the sale of American Eagles (gold & silver). We now have the numbers. There was a 131% increase in gold coin demand year over year in November. Surprisingly though, we weren’t the biggest buyers. The wholesalers were…
Wholesale gold and silver companies were stocking up in November with the expectation that we’ll demand the coins. This is a reminder of a couple of considerations with gold & silver coins:
If you want to own these coins as part of your portfolio that may make sense based on your criteria. I tend to not adhere to that strategy because I prefer investments to produce ROI without having to sell the investment (dividends, interest, rent, etc.). Buying gold and silver coins are more of an insurance policy in my view. The only way you’ll make money is if the base price of the commodity rises above what you pay.
Chase is top Big bank but smaller is still better:
Bottom Line: Chase has taken the top spot in the customer service ratings of the big banks (with Wells dropping to number 2). Perhaps the bigger story is also the smaller one.
The average customer service rating of a credit union or small bank is higher than even the highest rating of a big bank. So if you’re not happy with your big bank – think smaller.
Carnival testing all you can drink plans on its ships:
Bottom Line: Bottom’s up on Carnival cruise ships. They’ve added “all you can drink” daily options to several of their cruises. Here is the breakdown:
Is this a good idea…? Oh well bottoms up!