Here is the next installment in our Reader’s Questions Series, which highlight questions emailed to me by you, the readers of Money Q&A. This time, we’re talking about income replacement with dividends when you retire. Be sure to find out at the end of this article how you can receive a free copy of Dave Ramsey’s book, The Total Money Makeover.

If you’re not familiar with Dave Ramsey’s book, you should run right out and get it. It is one of the best personal finance books that everyone should read. Now….on to our reader’s question. This week’s Reader Question is from Kim who writes…

I am retired and do not work. Can I still contribute to either my Roth IRA or traditional IRA while retired? My husband is still working and contributing to his company 401k retirement plan.

Yes, you absolutely can continue to make IRA contributions after retirement with a Roth IRA or traditional IRA. And, you should! It may seem a little counterintuitive to continue to invest for retirement while you are actually retired. There are many reasons why you should make IRA contributions after retirement. But, there are also a few roadblocks to consider as well.

Why You Should Still Make IRA Contributions After Retirement

Why You Should Still Make IRA Contributions After RetirementLet’s face it. We’re all going to need as much money in retirement as we can possibly get. We’re not saving enough. Recent studies have bee abysmal on how little Americans are saving for retirement lately. More than one-third of Americans not even saving for retirement. So, in most cases, saving more – even in retirement – is almost always better.

Investing more money into IRA contributions after retirement can help you to build a retirement nest egg. Investing during retirement can help you to stay within your family’s monthly budget and limit your spending. It can also help you delay taking Social Security benefits until you’re older, which equates to hire monthly income. Investing more money into IRA contributions after retirement can also help justify taking Social Security benefits at 62 instead of waiting for your full retirement age.

Additionally, it is worth noting that investing more money into IRA contributions after retirement can increase the size of your estate for your heirs if you die before exhausting your retirement savings. While this isn’t an issue for most Americans, high-income earners will have to consider the implications for the Estate Tax and plan accordingly.

Contributing to 401k Retirement Plans After Retirement

You also can’t contribute to a 401k retirement plan after you leave your job. You can often continue to leave your money in your plan to earn interest and capital gains, but you will not be allowed to add to your 401k after you retire.

Most financial planners recommend rolling over your 401k retirement plan to a traditional IRA after you leave your employer. This will allow you to consolidate your investments and have better oversight of them. You can then add to, change allocations, and change investments after rolling over your 401k retirement plan to a traditional IRA.

Betterment even offers 401k rollovers into a rollover IRA. So, you can move that 401k retirement plan from your old employer over without any hassles. It is a great option to moving your money especially if you have changed jobs recently. Get up to 6 months of service free if you sign up here.

You may want to consider a partial rollover if you are still with your current employer. Check with your human resources department to see if your plan allows it. [click to continue…]


Whether you are looking for a great present for a loved one this holiday season or just want to learn more about taking control of your finances, any of these ten personal finance books listed below are a great choice. In fact, they should already be on your bookshelf or nightstand. These are the top ten personal finance books that everyone should read.

Top 10 Best Personal Finance Books

The Total Money Makeover by Dave Ramsey1. The Total Money Makeover by Dave Ramsey – If you didn’t know that I absolutely love this book, then you don’t read Money Q&A very much. Maybe you are new. That’s okay. It is an incredible book. It is where everyone should start.

It walks you through saving for an emergency fund, getting out of debt, starting to invest, saving for college, paying off your mortgage, and reaching financial peace in your life. You need this book if you do not read any other on this list. Get this book!

In The Total Money Makeover, Dave Ramsey provides readers with his system for seven baby steps to financial freedom that includes paying off your debt, investing 15% of your income for retirement, saving for your children’s education, paying off your mortgage, and living like no other financial peace.

The Automatic Millionaire by David Bach2. The Automatic Millionaire by David Bach – I love David Bach’s book, The Automatic Millionaire! This book is one of the first personal finance books that I ever read. Now almost two decades later, David Bach’s Latte Factor is now a common phrase in our frugality vernacular.

The book shows how anyone can achieve financial success by cutting out unnecessary expenses, paying yourself first with your investments, and set up a simple plan of how you can retire a millionaire and live the life of your dreams.

The Automatic Millionaire is a bestselling classic that has spanned a whole genre of personal finance books that feed off his system such as Smart Couples Finish Rich, The Automatic Millionaire Homeowner, Start Late Finish Rich, and many others.

What are your favorite personal finance books? Which one must everyone read?Click To Tweet

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Investing Demystified – A Five Video Series from Popular Investing Book

You may unnecessarily be paying the equivalent of five Porsche sports cars to the finance industry over your working life! Check out this investing video series on by Lars Kroijer, who used to run a hedge fund in London and wrote the book, “Investing Demystified: How to Invest Without Speculation and Sleepless Nights“. Basically, […]

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A Passive Dollar: How to Generate Income with XTrade Europe

No matter what industry you work in, you know that no money comes for free. Any payoff involves an investment of resources such as time, capital, raw materials, or labor. That being said, the recent growth of forex trading has provided an opportunity to traders across the globe to make some extra money from anywhere […]

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4 Tax Deductions and Credits for College Students and Parents

Most colleges are back in session, which means millions of students across the U.S. are in the midst of taking out student loans and paying for tuition, fees, textbooks, laptops, printers, and other school-related expenses. Those costs really start to add up. And, although grants, loans, and other forms of aid can help you maintain […]

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The Surprises You Discover When You Make a Budget

Most of us, at one point or other, start a budget. Some of us are natural budgeters. It just makes sense on some level to these people. But, there are often many surprises you find when you make a personal budget. Carefully managing every dollar is wise. So, why wouldn’t you do it? Well, for other […]

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