How Baby Boomers Can Save Money

I'm always interested in the answer to the question of how I can save money. This article had some common-sense answers, such as checking for coupons for the goods and services we use anyway. I've got an Entertainment Book and hardly ever think to check through it before picking a restaurant or where I'll get my oil changed. There are frequently buy one/get one half-off coupons for several local businesses I've never tried in the local papers and budget booklets. I could be more adventurous, support local businesses and save money all in one swoop.

The article on IRAs was a little inaccurate. The annual limit is $5000 under age 50, with a catch-up bonus of $1000 at 50 and older for a total of $6000 a year. Roth and Traditional IRAs offer different tax advantages. Roth IRAs are built from after-tax dollars. Since the taxes have already been paid on the amount invested, the investment and earnings are tax-free when you withdraw them after the 5 year minimum limit.

The amount contributed to a Traditional IRA is tax-free; the amount is deducted from annual income and you don't pay taxes on it until you withdraw money from the IRA. The IRAs themselves can be invested in any recognized securities instrument like a Certificate of Deposit, stocks, bonds, mutual funds and so forth. It's the method of taxation that differs. Look into the advantages and disadvantages of the different types of IRA to decide which is best for your individual situation, or consult with a financial expert.

How Baby Boomers Can Save Money

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