Huge Words!

Discussion in '401k, IRA and Retirement' started by dianethare, Jul 18, 2014.

  1. dianethare

    dianethare Senior Investor

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    Regardless of how many posts i have posted doesn't mean i know everything, would someone be kind in enough to explain these gigantic terms and what they mean, 401k, Roth IRA, IRA, REITS, swimming in confusion here...will highly appreciate. Thanks :)
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    http://www.investopedia.com/

    :D

    A traditional 401k is a tax-deferred work retirement plan in which the employee / investor's contribution is taken out before taxes. A Roth 401k is invested with after-tax dollars and grows tax-free.

    A Roth IRA / traditional IRA is a retirement plan you set up yourself with earned income. IRAs have lower annual contribution limits than 401ks. Traditional IRAs are tax-deferred and not limited to those in lower income brackets. The Roth IRA is available to those below certain income limits, and grows tax-free.

    Real Estate Investment Trusts and similar real estate "paper" investment vehicles are a way for investors to invest in real estate without the headaches of actually buying physical property, and that enable investors to buy much smaller dollar amounts of such investments - so they don't have to borrow from the bank, or come up with anywhere near the entire cost of a property, etc. They can buy little pieces of many different properties (diversify), so there is less risk. There is also generally more liquidity and a much greater speed of transaction with paper shares of real estate - you don't have to wait weeks, months, or longer to find a buyer, go through the process, wait to get paid, etc. You can generally get your money far quicker when you want or need to sell.
     
  3. dianethare

    dianethare Senior Investor

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    Thank you so much JR Ewing for your input, bookmarked the site for future reference if stuck :)....are there sites that you can recommend for someone who'd like to invest in REIT's?....and for starters, how much does one put aside for such investments.?
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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    You can find publicly traded REITs at any reputable investment website that has screening tools - Morningstar, WSJ, marketwatch, yahoo finance, etc. You'll also find real estate mutal funds and ETFs, individual real estate company stocks, etc on such sites.
     
  5. dianethare

    dianethare Senior Investor

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    Once again, thank you for your helpful input/advice JR Ewing :)...i do appreciate.
     

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