#compound-interest

#compound-interest

A traditional IRA allows you to contribute with pre-tax dollars and pay taxes on withdrawals in retirement, while a Roth IRA allows you to take tax-free withdrawals as a retiree, although you will have to contribute with after-tax dollars. Provided your income isn't too high, you can make tax-advantaged contributions to these accounts this year, up to a total limit of $7,500 if you're under 50 or a limit of $8,600 if you're 50 or older and eligible for catch-up contributions.

"You'll put in €30,000, but you'll end up with about €41,500." Personal finance columnist Sinead Ryan doesn't mince her words when it comes to the potential power of child benefit, if it's saved strategically. On the latest episode of Money Talks, she explains to Katie Byrne why this €140 monthly payment is one of the most misunderstood parts of family finances. For some households, it's essential income.

The advice I'd always been given is that novice investors should never try to play the market, no attempts to buy low/sell high or pick additional stocks, and that seemed very sound, as I have no experience in the field, so I just kept my hands off and assumed that the fund manager was doing whatever needed to be done.

The investment decisions people make are often influenced by cognitive biases that can lead to irrational decisions or behavior contrary to personal financial goals. Cognitive biases, like the status quo bias, showcase a tendency to prefer existing circumstances over change.