The Gift of Investing

The New Year is here! Do you have any New Year resolutions?  As you start to think of what you want to accomplish this year I want to tell you about some great opportunities that are being offered to us.  

IRA contributions have increased starting in 2019! What does this mean?  

According to the IRS website:

“A Traditional IRA: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000. The limit on annual contributions to a Roth IRA, which last increased in 2013, is increased from $5,500 to $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.”

This is great news for everyone! If you are starting late in life you now have an opportunity to save more.  It will help you to take advantage of compound interest which will increase the amount of money you end up with when you go to withdraw at retirement.   

Now, I understand that most people can’t max out both a Traditional IRA and Roth IRA. For those of you who can, that’s excellent! I tend to put most of my contribution into the Roth IRA.


A Roth IRA grows tax-free because you put after-tax dollars in.  The traditional you pay taxes on the withdraw. With the Roth IRA, we get less money now but more at retirement.  Due to not having to pay taxes when we withdraw. We feel more comfortable with that plan when thinking about our future.  This is just really a personal choice.

Both plans are great! Both offer excellent opportunities for you to save, take advantage of compounding interest to make money, and set yourself up so you don’t have to work in retirement.  The fact that the government is increasing the ability for us to save more in these accounts is huge! Please please take a moment to think about this and take advantage of it. Talk to an investment professional about the possibility of setting up something with either a Roth IRA or a Traditional IRA

Also in 2019, investing is cheap!! What a gift?!

Why would I want to invest if the market is down?

When looking at this graph from Business Insider, you can see that this data starts in the 1920s. The Great Depression was obviously a time of great loss for the United States.  The graph contains two types of markets The Bull Market is blue and the Bear Market is red. A Bull Market is defined by gains. A Bear market is defined by losses. Yes losses can hurt and they are scary, but if you keep to your plan you’ll always come out ahead.  The Idea is the market will come back, it always does. It comes back hotter and bigger than before.

Investment Account Options:

That being said now is the best time to buy into a Traditional IRA or Roth IRA!!!!

So when you’re considering your resolutions take some time to consider an IRA option.

Here are a few options:

  • Robo-Investing: Companies like WealthFront, Betterment, ect..
  • Traditional Investors: Edward Jones, Schwab, Fidelity, ect..

A robo-investor is simply a computer-based company that uses statistics to make investment choices on your behalf. It usually has a lower management fee structure because it’s a computer, not a person.  

A traditional is where you have an investment advisor who personally oversees your accounts.  Some firms have moved into a combination where they offer both robo-investing and traditional.

Research the different accounts to find the best fit.  I personally like the more traditional method. We go with Edward Jones. They are local and I like that.  We pay a little more in management costs but I feel it’s worth it so far!

You can do it! Keep investing, researching and moving forward financially! Be ready to ride the upswing when the bull comes charging back!!

Please don’t hesitate to leave a comment or question below or email me.


1 Comment

  1. Excellent information. You are doing a good job.

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