Latest news with #500Index
Miami Herald
8 hours ago
- Business
- Miami Herald
Veteran chartist unveils eye-popping S&P 500 target
With the stock market again flirting with record highs, investors want to know if their portfolios can keep climbing the proverbial wall of worry or whether the recent gains have been a last gasp before headline risks kick in and the next downturn starts. It's a fair question in a market that has largely performed to analyst expectations only if you measure prognostications by their beginning and end points. Don't miss the move: Subscribe to TheStreet's free daily newsletter Plenty of analysts expected the market to be near peak levels by mid-year, but no one was calling for the bumpy ride that stock market has actually seen. The S&P 500's roller coaster ride this year has left many scratching their heads, wondering what may happen next. Many on Wall Street are revamping their S&P 500 targets, including two long-time technical analysts who recently shared their updated forecast. Bloomberg/Getty Images The Standard & Poor's 500 Index entered 2025 at 5,868 and peaked on February 19 at 6,144; it then proceeded to give back nearly all of that gain by the time April rolled around. But after President Trump's so-called "Liberation Day" – when he announced sweeping tariff plans that rattled the markets – the index lost another 15% in a matter of days, setting a new low on April 8 at 4,982. The market then began to grind its way back; a month after Liberation Day, on May 2, it had recovered the full measure of the decline triggered by the tariff announcement. By May 13, the S&P 500 was in positive territory for the year. Related: Fed official sends shocking message on interest rate cuts Since then, it has ground higher, crossing 6,000 on June 6; that – and the record of 6,144 – was where a lot of market observers expected to see resistance, where a market that failed to break through could fall back, potentially all the way back to the April lows. While news events don't become part of the S&P 500 chart until they show up in prices, they do factor into what market technicians think can happen next. Technical analysts can cite legitimate concerns about a potential economic slowdown, sticky inflation, uncertain tariff policies, geopolitical tensions around the world and more. Those headlines cast a shadow over the market, which has market technicians looking for a breakthrough to confirm that the recent bounce-back isn't just a bear market rally. Two prominent technical analysts have made it clear that they expect the rally to hold, with new record highs coming any day now. Adam Turnquist, chief technical strategist at LPL Financial, says that investors see the messy economic backdrop and figure it's not conducive for a rally to new highs. Focus on the technicals and rely on history, however, and Turnquist says a different picture emerges. Related: Veteran strategist unveils updated gold price forecast For starters, bottoms are a process where the market hits lows and then tests them repeatedly, but the April downturn was V-shaped, steep and fast down but with a hard bounce and no-retest of the downturn. There is reason to believe in the upside, Turnquist says. In an interview on "Money Life with Chuck Jaffe," Turnquist noted that LPL research shows that over the last 75 years, when there is a meaningful new high three months after the last high was set, momentum tends to keep rolling, and the average return for the index over the ensuing 12 months is nearly 10 percent. "We can't discount the fact that we have a lot of trade uncertainty," Turnquist said. "Yes, we're past peak policy uncertainty when it comes to trade, but still very elevated, still a lot of headline risk. We talk about the deficit as well. There's risk there." Turnquist said if the market struggles to break through to new highs, a lot of analysts will call for a double-top and expect a fall back to at least the 5,400 level on the S&P 500. That's a 50% retracement on the rally, and it overlaps with some of the lows from last September. More Experts Analyst makes bold call on stocks, bonds, and goldTheStreet Stocks & Markets Podcast #8: Common Sense Investing With David MillerVeteran fund manager sends dire message on stocks For that reason, Turnquist expects the market to find "a confluence of support around those levels," but that's not the move he's calling for. Instead, he called this "a market where you want to be buying dips and not selling rips right now." He's not the only technical analyst who foresees those rips and new highs. Matt Fox, president of Ithaca Wealth Management, said in an interview on the June 17 edition of Money Life that the sell-off in April did a lot of the "technical damage" necessary to set up a rally. He said he now has a 7,000 target on the S&P 500, meaning a gain of roughly 20% in the next 12 months. "The momentum has been strong, and we have seen a lot of great participation across sectors," Fox said. "It's not just a handful of stocks that has driven this rebound from the April tariff lows; it has been the entire market. I think that's a good sign that not only will we test those new highs but we will keep on going up and keep on making new highs for the foreseeable future." Fox said the current charts are particularly strong, noting that he sees a lot of cup-and-handle patterns indicating stocks on the verge of a breakout. "It seems like we are in this sweet spot where the charts are lining up perfectly as the fundamentals are improving, and that can lead to some explosive moves," Fox said, noting that the conditions he sees in current charts remind him of 2013, a year in which the S&P 500 gained nearly 33%. "This is reminiscent of that," he said. "I'm worried to come off as too bullish, but I think it's hard not to be pretty constructive on the market going forward." Related: Veteran fund manager sends dire message on stocks The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
2 days ago
- Business
- Yahoo
Stock Market Today: Techs sag on report U.S. will limit chip exports
Stock Market Today: Techs sag on report U.S. will limit chip exports originally appeared on TheStreet. Updated 11:45 a.m. EDT Stocks have lost their early gains on reports the Trump administration is planning to revoke waivers that allow chip companies to use American chipmaking technology in China. The Philadelphia Semiconductor Index and the VanEck Semiconductor ETF () were both off 1.3%. The catalyst was a Wall Street Journal report that a top Commerce Department official has told chip manufacturers like Taiwan Semiconductor () he wants to revoke waivers that gave them blanket permission to use American technology at their plants in China. Instead, the Commerce Department would require export licenses on each instance of using U.S. technology in China, The Journal reported. The idea, if enacted, would affect U.S. trade negotiations with China and could boost costs for the chipmakers. As a result, the Standard & Poor's 500 Index was flat at 5,980. It had been as high as 6,018 early in the day. The Nasdaq-100 Index, which includes key chipmakers, was down 43 points to 21,677. It had been as high as 21,902. Taiwan Semi was off 1.7% to $210. The Dow Jones Industrial Average was still up 159 points to 42,331. Updated 10:20 a.m. EDT Stocks jumped at the open, then faded slightly as investors seemed relieved that the U.S. was holding off on deciding whether to join Israel's war against Iran. At 10 a.m. EDT the Standard& Poor's 500 Index had climbed 16 points to 5,997. The Dow Jones Industrial Average had jumped 167 points to 42,339. 💸💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💸 The Nasdaq Composite Index had risen 32 points to 19578, and the Nasdaq-100 index was up 53 points to 21,772. President Trump said Thursday he expected to decide the question within two weeks. Trump frequently delays decisions like these. His Republican Party has split between isolationists, who form the core of the MAGA side, and hawks, who favor attacking Iran to disable the country's nuclear ambitions. Crude oil and gold prices were lower as war fever ebbed. Crude was off 52 cents to $74.60. Gold was down $28 to $3,380. Silver, which hit a 52-week high of $37.41 per ounce on Wednesday, had fallen 98 cents to $35.94 but was still up 22.2% for the year. It's not easy being Federal Reserve Chairman Jerome Powell. A day after the Fed held interest rates steady, President Trump was raging about the decision. Bill Pulte, chairman of the Federal Housing Finance Agency, was calling on the Fed chairman to cut rates or resign. Christopher Waller, a Fed governor (and believed to covet the chairman's job), told CNBC Friday he thinks a rate cut could come early as the Fed's July 29-30 meeting Powell's term as chairman doesn't end until May 2026, and Trump has basically guaranteed he won't be offered a third battle has to do with how the Fed is affecting mortgage rates. Currently, a 30-year mortgage will cost about 6.8% to 6.9%. Housing data are generally weak, and building optimism is seriously depressed. While Powell is the de facto leader of the Federal Open Market Committee, the Fed's rate-making body, he is only one of more than a dozen central bank officials who vote on the bank's interest rate moves. Even so, Trump has raged at Powell for more than seven years after the president elevated him to lead the Fed in 2017. Investors seemed relieved early Friday after President Donald Trump said he'd decide within two weeks whether to commit America to join Israel in its war against Iraq. Oil prices were falling with crude oil down 39 cents to $73.11. 💵💰💰💵 Trump's decision seemed to surprise many after he'd called for "unconditional surrender" from Iran over its nuclear aspirations. But Trump ally Steve Bannon, a vocal opponent of going to war, visited the White House on Thursday. Futures trading suggests the Standard& Poor's 500 Index will open 8 points higher. The Dow Jones Industrial Average was looking at an opening increase of about 67 points, and Nasdaq-100 futures were up about 50 points. U.S. markets had been closed Thursday for the Juneteenth holiday. Shares of Accenture () were off 2% preopen even as the consulting giant reported better-than-expected earnings and revenue. Barron's cited weak bookings and leadership changes for the decline. Shares of supermarket operator Kroger () were up 1% to $66.25. . Building-materials supplier GMS () shares were up 27% premarket to $101 as a bidding war for the company erupted between Home Depot () and Brad Jacobs' QXO. GMS has a market capitalization of about $3.1 billion. Wall Street believes the bidding is already at $5 billion. The 10-year note yield was up slightly at 4.436%.Stock Market Today: Techs sag on report U.S. will limit chip exports first appeared on TheStreet on Jun 20, 2025 This story was originally reported by TheStreet on Jun 20, 2025, where it first appeared.
Miami Herald
2 days ago
- Business
- Miami Herald
Stock Market Today: Relief rally erupts after Trump delays Iran decision
Investors seemed relieved early Friday after President Donald Trump said he'd decide within two weeks whether to commit America to join Israel in its war against Iraq. Oil prices were falling with crude oil down 39 cents to $73.11. Don't miss the move: Subscribe to TheStreet's free daily newsletter Trump's decision seemed to surprise many after he'd called for "unconditional surrender" from Iran over its nuclear aspirations. But Trump ally Steve Bannon, a vocal opponent of going to war, visited the White House on Thursday. Futures trading suggests the Standard& Poor's 500 Index will open 8 points higher. The Dow Jones Industrial Average was looking at an opening increase of about 67 points, and Nasdaq-100 futures were up about 50 points. U.S. markets had been closed Thursday for the Juneteenth holiday. Shares of Accenture (ACN) were off 2% preopen even as the consulting giant reported better-than-expected earnings and revenue. Barron's cited weak bookings and leadership changes for the decline. Shares of supermarket operator Kroger (KR) were up 1% to $66.25. . Building-materials supplier GMS (GMS) shares were up 27% premarket to $101 as a bidding war for the company erupted between Home Depot (HD) and Brad Jacobs' QXO. GMS has a market capitalization of about $3.1 billion. Wall Street believes the bidding is already at $5 billion. The 10-year note yield was up slightly at 4.436%. Related: Veteran fund manager sends dire message on stocks The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
7 days ago
- Business
- Miami Herald
Middle East and Fed meeting top investor worries
When stocks sell off abruptly, as they did on Friday, many investors start thinking there may be a bargain and look to buy Buying the dip often works. It worked big-time after the 10% sell-off of the Standard & Poor's 500 Index after President Trump released his tariff plan on April 2. Through Friday, the index is up 23.6% from its April low of 4,835.04. Don't miss the move: Subscribe to TheStreet's free daily newsletter If the S&P 500 had just been unchanged on Friday, the gain would be 25%. In fact, the major U.S. indexes would have ended the week up at least 0.5% if they'd ended Friday unchanged. Instead, the selloff wiped out the week's gains. The results for the week: S&P 500. Friday close: 45,977, down 0.4%.Dow Jones Industrial Average. Friday close: 42,198, down 1.2%.Nasdaq Composite. Friday close: 19,407, down 0.7%.Nasdaq-100. Friday close: 21631, down 0.7%.Russell 2000. Friday close: 2,101, down 1.2%. Related: Everyone should keep an eye on this Persian Gulf island So, is a buy-the-dip shot possible this week? Possibly just because Friday's slump was pretty violent thanks to the Middle East crisis and a weak consumer confidence report from the University of Michigan. Just before 8 p.m. ET Sunday, futures trading suggested dip buyers are already at work, even as the shooting war between Israel and Iran doesn't look like it's ready to stop yet. That may explain why gains so far are modest. Through Sunday. Israel was attacking as many sites as possible trying destroy military and scientific facilities as well as Iranian leadership. Iran was shooting many missiles all over Israel. Some 200 Iranians are known dead, news reports say, including seven key military leaders and 9 top nuclear scientists. At the same time, at least 13 Israeli citizens have died in the missile attacks. Related: Veteran analyst sends surprising message on stocks, bonds, and gold Maybe a truce can be reached, but the potential is sizable for really bad things to happen such as: Nuclear weapons get fired. Israel attacks Iran's key oil terminal at Kharg could block off the Strait of Hormuz, disrupting global markets for crude oil and liquified natural gas. Still, one can hope. A buy-the-dip rally happened in 1991 in the first Gulf War,. It was apparent that Iraq, which had invaded Kuwait, would be overwhelmed and pushed out by an overwhelmingU.S.-led coalition of troops. A cease-fire was agreed to on Feb. 28. Stocks plunged on the first news of coalition bombings on Jan. 10, but then the S&P 500 surged 18.6% in the next 28 trading sessions without a single down day. The index ended the year up 26.3%. Anyone trying to profit on dip-buying, however, must also keep in mind: It's a good idea to expect higher oil prices after Friday's 7% gain to $72,98 a barrel. Crude oil was up more than $2 a barrel in futures trading Sunday. Some stocks have become pricey, including Oracle (ORCL) , up 23.7% last week alone. But its relative strength index is at 89, which is a signal the shares are now wildly this is said in the light of the continued uncertainty about U.S. trade policy. The Trump Administration has been trying to impose a new trade regime as quickly as possible, but new agreements with other nations are slow in coming. Meanwhile, it is a light week for earnings reports and only the Federal Reserve meeting on Tuesday and Wednesday as key events to watch. U.S. markets are scheduled to be closed Thursday for the Juneteenth Holiday. What happens at the Fed may cause some volatility. President Trump keeps demanding that the central bank cut its key federal funds rate, now at 4% to 4.25%. Related: Analysts turns heads with surprise Tesla rating ahead of Robotaxi launch A new idea is to name a successor to Chairman Jerome Powell, whose term expires next spring, in hopes that Powell will resign now. So far, the Fed and Powell have has resisted saying there's too much uncertainty in the economy. Fund manager buys and sells See a big stock rally ahead? Be patient, money manager saysFund manager, skeptical of AI, backs shocking stockVeteran fund manager sends surprising message on the weak dollar Earnings this week will start with home builder Lennar (LEN) , one of the nation's biggest, whose business has been struggling from 30-year mortgage rates at just under 7%. In the first quarter, the company spending 13% of sales just buying to down initial mortgage payments to close sales. Earnings are estimated at $2.60 per share, down 23.1% from a year ago. Revenue is predicted at $8.55 billion, down 2.5% from a year ago. The big day is Friday when consulting giant Accenture (ACN) reports third-quarter results before the bell. The company's future has been roiled by the Doge efforts to chop federal spending. The company warned in its second-quarter analyst call that sales and profits would probably drop because of the Doge cuts. Shares are down 11.3% year to date and 22% from an intraday peak of $385.35 on Feb. 5. Accenture still has a market cap of nearly $200 billion. Along with Accenture, supermarket giant Kroger (KR) will also report. Revenue is expected to be down slightly at $45.2 billion. Earnings are seen rising 7.8% to $1.54. Shares are up 7.2% on the year at $65.66. They were even up 0.8% on Friday. Used-car giant CarMax (KMX) also reports on Friday, with earnings expected at $1.27, up nearly 30% from a year ago. The revenue estimate is $7.46 billion, up nearly 5%. The shares are down 20.5% year-to-date. Related: TSA issues stern warning forbidding popular summer item South African-based Gold producer Gold Fields (GFI) , before Tuesday's component maker Jabil Inc. (JBL) , before Tuesday's consulting firm Korn Ferry (KFY) , before Wednesday's open. Gun-manufacturer Smith & Wesson Brands (SWBI) , after Thursday's operator Darden Restaurants (DRI) , before Friday's open. Related: Veteran fund manager issues dire stock market warning The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
14-06-2025
- Business
- Yahoo
8 best Roth IRA investments to maximize your retirement
A Roth IRA is one of the best possible ways to invest for retirement, and in fact, many experts think it's the single best retirement account to have. Naturally, it makes sense to take full advantage of this account by maxing out your annual contributions. But what are the best investments for your Roth IRA? You'll want to focus on investments that have a strong likelihood of growing a lot over the long term, but with little chance of going down. That means steering clear of highly speculative investments. Here are some of the top investments to consider for your Roth IRA and why they may work for you. Investment Holdings Key features S&P 500 index funds Companies in the S&P 500 Instant diversification Dividend stock funds Stocks that pay dividends No taxes on dividends Value stock funds Stocks that are a relative bargain Lower volatility Nasdaq 100 index funds The largest non-financial companies in the Nasdaq Exposure to big tech stocks REIT funds Companies that own, operate or finance income-producing real estate High dividends Small-cap funds Smaller companies Potential for higher returns Bond funds Bonds Lower returns, but less risk Target-date funds Stocks, bonds, cash and other investments Automatic rebalancing and reallocation A Roth IRA uses after-tax contributions to grow your money tax-free and then allows you to withdraw it without paying taxes in retirement. You can build up a nest egg that the government will never be able to touch again. (All fund data is from Morningstar as of June 10, 2025.) One of the best places to begin investing your Roth IRA is with a fund based on the Standard & Poor's 500 Index. It's a collection of hundreds of America's top companies, including many of the names you know and use every day (Amazon, Apple and Microsoft, for example). Over time, the index has performed well with average annual returns of about 10 percent. With this index fund, you'll enjoy a broadly diversified portfolio that includes some of the world's strongest companies, meaning you'll have reduced risk and the potential for solid gains. It also doesn't hurt that these funds often come with low expense ratios, meaning you won't pay a lot to the fund's managers, so more of your returns stay in your pocket. Fund 5-year annual returns Expense ratio Fidelity 500 index fund (FXAIX) 15.1% 0.015% Vanguard S&P 500 ETF (VOO) 15.1% 0.03% SPDR S&P 500 ETF Trust (SPY) 15.0% 0.095% Learn more: Top S&P 500 index funds Dividend stock funds are another popular option. Companies that pay dividends tend to be in mature industries and generate a ton of cash, allowing them to distribute the money to shareholders. The best companies increase their payouts annually for decades, turning your investment into a dividend dynamo. Plus, they tend to be less volatile than an average fund. Dividend stock funds can be particularly attractive in a retirement account because of their relative safety (they're in a mature industry). Even better, when held in a Roth IRA, the dividends are not subject to tax. Investors can roll dividends right back into the dividend fund and keep the payouts growing year after year. Fund 5-year annual returns Expense ratio Vanguard Dividend Appreciation ETF (VIG) 12.53% 0.05% Vanguard High Dividend Yield ETF (VYM) 12.28% 0.06% Schwab US Dividend Equity ETF (SCHD) 11.31% 0.06% Learn more: Best dividend ETFs Value stock funds include stocks that are more value-priced than the rest of the market, helping you find companies with share prices that are relative bargains. That means value stocks tend to be less volatile than the rest of the market, and they tend to have good returns over time. Plus, many of these companies also pay dividends, meaning you can enjoy attractive returns plus a cash payout. Because of their (usually) lower volatility, value stock funds may make an attractive addition to a Roth IRA. And of course, any dividends can be plowed right back into the value stock fund, too. Fund 5-year annual returns Expense ratio Vanguard Small-Cap Value ETF (VBR) 12.76% 0.07% Vanguard Value ETF (VTV) 12.66% 0.04% iShares Russell 1000 Value ETF (IWD) 11.45% 0.19% Learn more: Best value ETFs A Nasdaq 100 index fund focuses on the largest names trading on the Nasdaq stock exchange, which is chock-full of tech firms you might use every day, including Amazon, Apple and Meta Platforms (formerly known as Facebook). This kind of fund gives you high exposure to these top players, even more than you'd get in an S&P 500 index fund, supercharging your returns if these stocks do well. If you believe in the continued growth of tech stocks, this kind of Nasdaq fund is a great place to invest, potentially for decades. You'll get some diversification and may be able to compound your money at attractive rates. Of course, inside a Roth IRA you won't pay any capital gains taxes, either on your sales or when you make a qualified withdrawal from the account. Fund 5-year annual returns Expense ratio Invesco QQQ Trust (QQQ) 17.62% 0.2% Invesco Nasdaq 100 ETF (QQQM) 21.92% (3-year) 0.15% Direxion Nasdaq-100 Equal Weighted ETF (QQQE) 11.46% 0.35% Learn more: Best Nasdaq ETFs Real estate investment trusts (REITs) may sound fancy, but it's just the name for a special kind of tax-advantaged company that manages real estate investments. By law, REITs must pay out most of their income as dividends in exchange for not having to pay tax at the corporate level. That tax-advantaged structure means that they're a preferred place for real estate investors. Perhaps unsurprisingly, REIT funds are popular with investors because they pay out high dividends, and they have a strong track record of returns over time, too. Plus, inside the Roth IRA you won't owe any taxes on those dividends, allowing you to reinvest them in more shares. It's a double whammy of investment returns that keeps many investors hooked on REITs. Fund 5-year annual returns Expense ratio Real Estate Select Sector SPDR Fund (XLRE) 5.75% 0.08% Vanguard Real Estate ETF (VNQ) 4.98% 0.13% iShares U.S. Real Estate ETF (IYR) 4.84% 0.39% Learn more: Best REIT ETFs Funds that invest in small companies — those called small-cap stocks — are an attractive place for long-term investment returns. Small-caps have the potential to grow quickly over time, and they're often high-growth companies, but not always. Because they're smaller and have fewer financial resources, small caps tend to be riskier, but they can make up for it with high returns. Because of their potential for growth over time, small-caps can be a good investment for a Roth IRA, letting you compound your money. You can invest in a fund focused exclusively on small caps, such as an index fund that tracks the Russell 2000, and enjoy the relative safety created by the fund's well-diversified portfolio of holdings. Fund 5-year annual returns Expense ratio Invesco S&P SmallCap 600 Revenue ETF (RWJ) 17.04% 0.39% Avantis U.S. Small Cap Value ETF (AVUV) 16.65% 0.25% Invesco S&P SmallCap 600 Pure Value ETF (RZV) 14.55% 0.35% Learn more: Best small-cap ETFs Bond funds may not perform as well as stocks over the long term, but they can generate meaningful income that is tax-free when it's held in a Roth IRA. Look for core bond funds that hold highly rated bonds, which means the companies are likely to meet their debt obligations. High-yield bond funds offer higher returns, but they come with additional risk that can make them behave more like stocks than bonds. The bonds held in high-yield funds are non-investment grade, or junk, because there's a real risk they won't be able to make their interest payments. Fund 5-year annual returns Expense ratio Vanguard Total Bond Market ETF (BND) -0.94% 0.03% iShares Core U.S. Aggregate Bond ETF (AGG) -0.96% 0.03% Fidelity U.S. Bond Index Fund (FXNAX) -1% 0.025% Learn more: Best bond funds for retirement investors A target-date fund is a good pick for investors who don't want to focus on managing a portfolio. With a target-date fund, you choose the year when you want to access the money, and the fund automatically moves you from riskier, high-return assets (stocks) to safer, low-return assets (bonds) as you approach your date. Deposit money and let the fund company run the show. If there's a downside to target-date funds, it's that they can cost more than other funds, though their expense ratio is still often reasonable. But that additional cost is for their extra management. Also, it may make sense to pick a target date that's five or 10 years later than you actually want to retire, because that leaves more high-growth assets in your portfolio. By doing this, you help ensure that you won't outlive your money, a risk that can prove very stressful in your retirement years. Fund Expense ratio Vanguard Target Retirement 0.08% T. Rowe Price Retirement 0.56% – 0.64% BlackRock LifePath Index Varies Get started: Match with an advisor who can help you achieve your financial goals If you're investing the money you need for your retirement, you want to balance the prospect for strong, long-term returns with taking reasonable risks. For example, a well-diversified portfolio of stocks is likely to outpace most investments over time. Yet in the short term, stocks can fluctuate significantly. But overall, a portfolio of stock index funds is a time-tested way to build wealth. Recently, Fidelity and other companies have begun offering the ability to purchase cryptocurrencies, such as Bitcoin, in an IRA or 401(k). While Bitcoin has had a strong run since it was first introduced in 2009, it's still a highly speculative asset. That's led some investing experts to caution that using a retirement account to invest in cryptocurrencies is 'gambling' and 'pure, unadulterated speculation.' Instead, stick to the tried-and-true methods of building wealth in your retirement accounts, because that money must be there when you need it. Can anyone contribute to a Roth IRA? No, there are income limits for contributing to a Roth IRA. For the 2025 tax year, single filers can make the full $7,000 contribution if their income is below $150,000. Those over age 50 can make an additional $1,000 contribution. If you're single and make $165,000 or more, you can't contribute to a Roth IRA. The income limit for a married couple filing jointly maxes out at $246,000. There are still ways to get money into a Roth IRA if your income is high. Here's what to know about the backdoor Roth IRA. How much can you contribute to a Roth IRA? Roth IRA contribution limits are $7,000 for those under 50 years old or $8,000 for those age 50 and older for the 2025 tax year. Which investments should you avoid in a Roth IRA? You should avoid speculative investments in a Roth IRA because you're relying on these investments to fund your future retirement. Cash is also a poor investment for a Roth IRA because it's likely to lose value over time due to inflation. Municipal bonds should also be avoided because their tax advantage isn't needed in a tax-advantaged account. A Roth IRA is a great investment account for retirement, and investors should look to take maximum advantage of it. Find investments with a strong, long-term track record and stay clear of highly speculative investments. With potentially decades to let your Roth IRA compound, you can give yourself every chance of building a huge nest egg that's untouchable by the taxman. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. Sign in to access your portfolio
