problems restructuring under difficult economic conditions.”
In particular, Clark recommends that Beale add the $2,000 prize money to his Roth IRA. “Within that account,” he says, “I would recommend investing the money in small- and mid-cap growth funds. The Roth IRA allows tax-free growth and tax-free withdrawals of earnings.” Tax-free earnings can’t be withdrawn from a Roth IRA until after age 591/2. By that time, if all goes according to plan, Beale will have had a prosperous executive career and need even more tax shelter.
Financial Snapshot: Edwin Beale
|Market value of home||$107,000|
|Credit card debt||2,000|
|*Does not include possible bonuses|