With all the baby boomers getting older, I believe healthcare stocks are going to grow rapidly in the future. Now is the time to start buying them. You'll never be able to predict which stocks will go up. There are various ETF's and Mutual Funds that invest in many healthcare companies.
If you do not like ETF's or Mutual Funds here is another option: Look at the ETF's and Mutual Funds, and see what companies they invest in. Do some research and invest in the company of your choice.
Saturday, March 17, 2007
401k or Roth 401k?
Many company's are starting to offer a Roth 401k. A Roth 401K is like a Roth IRA. You pay taxes on the money now instead of later. With a normal 401k, the money is not taxed now, and I taxed when you withdrawl the money.
Should you switch to a Roth 401k? Depends... Are you in a lower taxes bracket now then you will be when you retire? Do you think the tax rate will be increase by the time you retire. If either of those statements are true. Then the Roth 401k is for you.
I like the fact that I have already paid taxes on the money so I do not have to worry about it in the future (I'm in the lowest tax bracket also). However, you have to consider the taxes you pay now are not compounding like they would in a normal 401k.
Should you switch to a Roth 401k? Depends... Are you in a lower taxes bracket now then you will be when you retire? Do you think the tax rate will be increase by the time you retire. If either of those statements are true. Then the Roth 401k is for you.
I like the fact that I have already paid taxes on the money so I do not have to worry about it in the future (I'm in the lowest tax bracket also). However, you have to consider the taxes you pay now are not compounding like they would in a normal 401k.
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