Friday, September 9, 2011
Thursday, September 8, 2011
Wednesday, September 7, 2011
How Roth IRAs Work
by Francie Adkins
Have you ever wondered if you're saving enough of your income today to enjoy your golden years of retirement? There are many ways for Americans to save more for retirement besides simply stashing away extra cash into a savings account -- and who has "extra" cash, anyway?
Retirement programs established by employers are an extremely popular way to save, but there are other alternatives available to subsidize the income generated from an employer's pension plan or Social Security. Unfortunately, funds from pension plans and Social Security alone are rarely enough to grant you the lifestyle in retirement that you may be used to today. Figure out how much you can expect to earn from Social Security when you retire by checking out this retirement calculator.
While there are many different options for investing for your retirement, individual retirement accounts (IRAs) are a popular choice. There are several different types of IRAs:
- Employment: Employers have the option to set up IRAs for their employees.
- Marriage: Married taxpayers may set up IRAs for their spouses.
- Inheritance: IRAs can be inherited from deceased benefactors, and IRAs can be structured strictly to cover the costs of higher education.
We're going to look specifically at how Roth IRAs work. Fortunately, Roth IRAs include many of the benefits offered in all of these varying types of individual retirement accounts. Before we dive in, let's get familiar with some key words:
- Contribution: the amount of money you personally invest in a Roth IRA
- Earnings: money you, the contributor, earn on your investments
- Heir: a person you designate in your will to receive property when you die
- Profit: the return you make on your investment
A Roth IRA is similar to a savings account, but unlike a savings account, you invest this money to generate a sizable profit. That profit is then reinvested in the Roth IRA until the maturity date of the account. Because you invest your money into a Roth IRA after taxes, you don't have to pay taxes on the earnings upon withdrawal of the funds at or after the maturity date. This is different from other types of IRAs, 401(k), or 403(b) where you will pay taxes when you withdraw funds. Roth IRAs offer flexibility to the contributor, as funds can be withdrawn prior to maturity without being penalized.
Tuesday, September 6, 2011
Your Money Plan Webcast with Suze Orman
In the spirit of Labor Day and the contribution of the working
class, OHM would like to provide a source to educate its followers on methods
to make the money you work for, work for you.
http://www.oprah.com/money/Your-Money-Plan-with-Suze-Orman-Oprahs-Best-Life-Webcast-Video
Monday, September 5, 2011
The History of Labor Day
For other Labor Day information, visit our Labor Day 2011 page.
Labor Day: How it Came About; What it Means
Labor Day, the first Monday in September, is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country.
Founder of Labor Day
More than 100 years after the first Labor Day observance, there is still some doubt as to who first proposed the holiday for workers.
Some records show that Peter J. McGuire, general secretary of the Brotherhood of Carpenters and Joiners and a cofounder of the American Federation of Labor, was first in suggesting a day to honor those "who from rude nature have delved and carved all the grandeur we behold."
But Peter McGuire's place in Labor Day history has not gone unchallenged. Many believe that Matthew Maguire, a machinist, not Peter McGuire, founded the holiday. Recent research seems to support the contention that Matthew Maguire, later the secretary of Local 344 of the International Association of Machinists in Paterson, N.J., proposed the holiday in 1882 while serving as secretary of the Central Labor Union in New York. What is clear is that the Central Labor Union adopted a Labor Day proposal and appointed a committee to plan a demonstration and picnic.
The First Labor Day
The first Labor Day holiday was celebrated on Tuesday, September 5, 1882, in New York City, in accordance with the plans of the Central Labor Union. The Central Labor Union held its second Labor Day holiday just a year later, on September 5, 1883.
In 1884 the first Monday in September was selected as the holiday, as originally proposed, and the Central Labor Union urged similar organizations in other cities to follow the example of New York and celebrate a "workingmen's holiday" on that date. The idea spread with the growth of labor organizations, and in 1885 Labor Day was celebrated in many industrial centers of the country.
Labor Day Legislation
Through the years the nation gave increasing emphasis to Labor Day. The first governmental recognition came through municipal ordinances passed during 1885 and 1886. From them developed the movement to secure state legislation. The first state bill was introduced into the New York legislature, but the first to become law was passed by Oregon on February 21, 1887. During the year four more states — Colorado, Massachusetts, New Jersey, and New York — created the Labor Day holiday by legislative enactment. By the end of the decade Connecticut, Nebraska, and Pennsylvania had followed suit. By 1894, 23 other states had adopted the holiday in honor of workers, and on June 28 of that year, Congress passed an act making the first Monday in September of each year a legal holiday in the District of Columbia and the territories.
A Nationwide Holiday
The form that the observance and celebration of Labor Day should take were outlined in the first proposal of the holiday — a street parade to exhibit to the public "the strength and esprit de corps of the trade and labor organizations" of the community, followed by a festival for the recreation and amusement of the workers and their families. This became the pattern for the celebrations of Labor Day. Speeches by prominent men and women were introduced later, as more emphasis was placed upon the economic and civic significance of the holiday. Still later, by a resolution of the American Federation of Labor convention of 1909, the Sunday preceding Labor Day was adopted as Labor Sunday and dedicated to the spiritual and educational aspects of the labor movement.
The character of the Labor Day celebration has undergone a change in recent years, especially in large industrial centers where mass displays and huge parades have proved a problem. This change, however, is more a shift in emphasis and medium of expression. Labor Day addresses by leading union officials, industrialists, educators, clerics and government officials are given wide coverage in newspapers, radio, and television.
The vital force of labor added materially to the highest standard of living and the greatest production the world has ever known and has brought us closer to the realization of our traditional ideals of economic and political democracy. It is appropriate, therefore, that the nation pay tribute on Labor Day to the creator of so much of the nation's strength, freedom, and leadership — the American worker.
Courtesy: United States Dept of Labor
Sunday, September 4, 2011
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