Traditional IRA vs. Roth IRA – Which is Better for You?

Would you rather pay the taxes now or later?

Source: StockMonkeys.com

The individual retirement account is the most common — and most often misunderstood — retirement savings arrangement. The confusion usually stems from the fact that there are two different types of IRAs: a traditional IRA and a Roth IRA.

Both types of retirement investments share a number of characteristics. And both IRA types offer individuals a dedicated, tax-favored account into which retirement money can be deposited. Within the IRA account may be any number and type of investment vehicles such as stocks, bonds, CDs or mutual funds. The total value of the investments within in an IRA grows on a tax-deferred basis once funds are in the retirement account.

Annual contribution limits have been placed on IRAs by the Internal Revenue Service, as well as eligibility criteria and withdrawal restrictions. For the 2015 tax year, the aggregate total of all contributions to IRAs, regardless of whether those accounts are traditional, Roth, or a combination of both, cannot exceed the lesser of $5,500 or 100% of your earned income. Those 50 and older can save an extra $1,000.

Will This Company Beat AMZN to Drone Deliveries?

Starship Technologies' drones may be grounded, but their implementation is anything but

Source: Starship Technologies

In the race to create the ultimate package delivery system, several companies — most notably, Amazon (AMZN) — have been investigating and developing drones that could eliminate the need for humans in the last-mile leg of the shipping process.

Starship Technologies, a London-based tech startup founded last year by Skype co-founders Ahti Heinla and Janus Friis, is the latest to hit the front page.

Starship Technologies has been all the buzz this week thanks to the company’s reveal of a new delivery drone prototype.

However, unlike the drones being developed by AMZN and Alphabet (GOOGL, GOOG), this particular model doesn’t fly.

According to a press release by Starship Technologies, these drones will be environmentally friendly and have the capacity to deliver packages as large as two grocery bags. Their operating radius is expected to be 5 to 30 minutes from a retail outlet or local hub.

Retirement Savings: Fixed Annuities vs. Dividend Stocks

Fixed annuities and dividend stocks offer unique opportunities to create retirement income

Source: StockMonkeys.com

For conservative investors, particularly those approaching (or having already entered) retirement, protecting the money they’ve worked so hard to earn and save over the years is of the utmost importance.

However, eventually that nest egg will likely be needed to supplement — or create — other retirement income streams to maintain a standard of living. The use of fixed annuities and dividend stocks is often considered, as both present a viable solution.

The choice to use either fixed annuities or dividend stocks is entirely a personal decision, one that requires consideration of a number of factors including the investor’s goals, time horizon and risk tolerance.

While both annuities and stocks are capable of producing a satisfactory retirement income, the fundamental differences between these two investment types may have a dramatic and profound effect on the total value of a portfolio. The pros and cons of saving for retirement via fixed annuities or dividend stocks must be carefully examined, as each method carries unique risks.