The Column - July 28, 2022
BOULDER CITY PRIDE
Over 20 years ago, the events of September 11, 2001, left the town of Boulder City effectively shut off from tourism and traffic as the Dam crossing was closed for an undetermined amount of time. Many forecast the end of Boulder City’s small businesses…it wasn’t.
Just a few short years ago the opening of the I-11 by-pass was supposedly the death knell for local businesses and Boulder City would become just another Route 66 victim…we weren’t.
And then came the pandemic. Despite the hardships and lockdowns placed upon our small businesses, not only did they survive but they grew in numbers!
There are many businesses in town that survived all four of these doomsday scenarios and have thrived despite the “chicken littles” in our midst. These times were all serious, and they called for some difficult decisions, but the strength of our small business community has risen up and faced the challenges each time with courage and determination. I have lived in this beautiful town for almost 30 years and what I have learned is we have more than our fair share of sharp and tough business owners who refuse to stay down. They have done their part to be there for us, so it is our responsibility to be there for them! Shop local! It is the life blood for many!
ROTH IRA MISTAKES
A Roth IRA is an excellent retirement account, but just like with any tool, the more you know how to use it, the better it can work for you. Here are some common Roth IRA mistakes to avoid, so that you make the most out of the account.
Not Investing - You don’t want to simply open a Roth IRA and let the funds sit there. You need to have those funds invested. If you don’t allocate the money — using them to buy stocks, bonds, funds or ETFs, for example — the money will miss out on tax-free growth via compound interest. As CNBC notes, the younger you are, the more risk you want to take on. As you get closer to retirement, you might want to rebalance your portfolio for less risk.
Contributing Too Much - Believe it or not, you can contribute too much to a Roth IRA. If you’re under 50, the maximum you can contribute to your account for 2022 is $6,000. If you go over that amount, you’ll get hit with a six percent tax on those extra funds every year until you correct the mistake.
Settling for a 401(k) - If you have a 401(k), you might think you’re all set for retirement. Well, when it comes to saving for your golden years, the more money that you’ve been able to save over time the merrier. That’s why if you’re eligible and still have money to make a contribution, you should also open a Roth IRA. The Roth and the 401(k) are a great retirement savings tandem. Fund both accounts properly and you’ll set yourself up for retirement success.
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WORDS OF WISDOM
“Discovery consists of seeing what everybody has seen and thinking what nobody has thought.” - Dr. Albert Szent-Gyorgyi