On this week’s episode of Money On Tap with Seth Krussman and Ben Brayshaw, we discuss the different types of IRA’s and address questions from our listeners with regards to which IRA is more effective. Money is divided into two buckets – qualified and non-qualified. Non-qualified money being money in your savings account, your checking account, and your house. Qualified money being your IRA, 401k, and Roth IRA. Today we are focusing on IRA and Roth IRA, the difference between the two, benefits of having one versus the other and ways in which you can use each one to its full potential.
Today’s Money in The News focused on the death of Bernie Madoff (82), the mastermind behind the Ponzi scheme. Madoff’s legacy will most likely be focused on his creation of the Ponzi scheme and not around the fact that he was the one who created the NASDAQ. The effects of the Madoff scheme go as deep as changing the way the SCC investigates fraud and financial managers.

• Why do Americans fear running out of money more than death? A recent Allianz survey found that 61% of Americans fear running out of money in retirement more than they fear death itself. The shift reflects structural changes: pensions have largely disappeared, 401(k)s placed the risk of retirement success on individuals, life expectancy has stretched, inflation has accelerated, healthcare costs are rising, and Social Security is on track for a benefit cut. The fear is rational — and the planning response is to build a multi-source income plan rather than to hope a portfolio alone is enough.