You already know about stocks, mutual funds, and index funds as investment options but did you know that there is yet another option? Every single weekday, at any given time, there are people all across the world speculating on currency prices with the aim of making a profit. Countries, banks and investors are all involved, but you also have the ability to participate. It’s called the foreign exchange market (Forex or FX for short).
Well, they aren’t inherently evil, but the simplistic rationale and ways that people go about thinking and handling tax refunds certainly can be to their financial states. I read an article by Dave Carpenter, a personal finance writer for The Associated Press on retirement and other topics, which landed on MSN Money’s Tax Tips page about tax refunds and how they aren’t always evil. His main points for tax refunds being good are called: avoiding a debt trap, providing a welcome windfall, protection against tax surprises, forced savings, and little lost opportunity cost. Sure, it’s great to be chipper and look at the bright side of things, but it’s not always helpful. Sometimes, people need to hear the truth even if they don’t want to hear it.
Jeff Rose from Good Financial Cents created and organized The Roth IRA Movement after taking a quick poll of graduating college seniors during a speech at his alma matter and discovering that none of the 50 attendees knew what a Roth IRA was. That wasn’t really surprising to me, as even with all of the advances in information technology younger generations have at their disposal, a large number of them use it for such things as gaming, worrying about what others are doing on social media sites, trying to create stupid trend with viral videos, and other generally unproductive tasks when they could be using these powerful tools to expand their knowledge and improve their lives (at least in my opinion). Personally, I have a Roth IRA as a part of my financial planning process, and to be honest, I can’t imagine why anyone would choose to use a traditional IRA if this more beneficial option is available to them.