How do Spousal IRAs Work?

Spousal IRAs are a type of individual retirement account designed for married couples where one spouse is not employed. The working spouse may contribute up to $5,500 per year (2017 figure) to an IRA, in the name of the non-working spouse, and up to $5,500 per year to his or her own IRA. As a result, a couple may contribute 100% of their income up to a total of $11,000 per year (2017 figure).

In addition, if you are age …

How Do You Purchase Stock From a Company That is Going Public?

You are talking about an IPO (initial public offering). You should be able to get information (e.g., company research) from a stockbroker. Also, visit an online search engine (e.g., Bing or Google), type in the company name, and see what information you get. If there is an address or toll-free telephone number for the company’s “shareholder relations” department, call it. As for purchasing an IPO stock, you may or may not be able to buy shares directly from the company. …

Are Accounts at a Bank Combined for FDIC Insurance?

The Federal Deposit Insurance Corporation (FDIC) guarantees that bank deposits up to $250,000 are safe. All of your single accounts at the same FDIC-insured bank are added together, and the total is insured for up to $250,000. For retirement savings accounts, the limit for FDIC insurance is also $250,000. All of your self-directed retirement savings accounts at the same insured bank are added together and the total is insured for up to $250,000.

This FDIC fact sheet explains the maximum …

What are the Contribution Limits for Traditional and Roth IRAs?

In tax year 2017, the maximum contribution limit for IRAs is $5,500. This applies to Roth IRAs or traditional IRAs or a combination of the two. The IRS also has a catch-up plan for people who are 50 and older. They can contribute an extra $1,000 (for a maximum of $6,500) in 2017. In order to contribute to an IRA, you must have earned income from wages, a salary, or net self-employment earnings.

There are no income restrictions for contributions …

What are “Teaser Rates” on a Credit Card?

“Teaser rates” (also known as “introductory rates” and “promotional rates”) are just that: low annual percentage rates (APRs) that are used to entice people to apply for a certain credit card. Unfortunately, these rates may not last long.

Most teaser rates expire and revert to a higher rate after six to 12 months. Specific policies are set by a credit card issuer. As a result of the 2009 CARD Act, teaser rates must be in effect for at least six …

How Does a Target Date Mutual Fund Work?

With a target date mutual fund, investors simply need to pick a fund with a date at or near the year that they expect to retire. For example, there are funds with dates such as 2020, 2030, 2040, and 2050 in their title.

The fund manager will gradually change the asset allocation of the fund as time goes by so that, eventually, there will be a smaller percentage of the portfolio in stocks and a higher percentage in bonds and …

Where Can I Find My FICO Credit Score for Free?

FICO credit scores are not required by law to be made available free of charge like credit reports are. They may be purchased from the company that calculates the score or at www.myFICO.com.

Sometimes you can get your credit score for free as part of the process of applying for a loan. Ask the creditor that you have applied for a loan from to provide you with this information, especially if you have paid a fee for a credit …

What is Long-Term Care?

The phrase “long-term care” describes a variety of services that provide medical and non-medical care to people who have a chronic illness or disability. Long-term care helps meet health or personal needs. Most long-term care is to assist people with support services such as activities of daily living like dressing, bathing, and using the bathroom.

Long-term care can be provided at home, in the community, in assisted living, or in nursing homes. It is important to remember that people may …

What is the difference between a premium, a co-pay and and out-of-pocket expense?

Health Insurance Plan costs can be broken into two categories: cost of having the plan and costs of using the plan. In order to purchase and continue to have health insurance coverage, you have to pay a premium. The premium is paid on a regular basis such as a certain amount monthly, quarterly or yearly. It is typical that when purchased through your employer, the plan premium is deducted from each paycheck. Basically, the premium buys you the health …