Daily Money - A Major Medicare Deadline Is Tomorrow

This week in our Retire with Money Facebook group, members discussed this story. The headline is “How People Lose All Of Their Money” and the text asserts, “Going from million/millions to zero is certainly possible, and there are just as many ways to do so as to go from zero to a million.” This may be true, but I’d counter that this framing could scare people away from investing, when in reality blowing through millions would probably involve an extreme combination of bad judgment and bad luck. As one member put it,  “I have known people to go through hundreds of thousands day trading. But have known zero people to go broke investing in large bond or stock funds.”  Dollar cost averaging into diversified, low-cost funds isn’t going to bankrupt you. On the contrary, it’s a good way for average people to build wealth over time.

Both traditional and Roth IRAs are tax-advantaged accounts that help you save for retirement. Yet there are some key differences. For starters, there is a maximum income limit to contribute directly to a Roth IRA. If you do qualify, the long-term benefits are powerful because potential earnings grow tax free and you can make withdrawals tax free in retirement. With a traditional IRA, there are no income limits to contribute and there is the more immediate benefit of tax-deductible contributions. Other considerations include whether your spouse works and how good you are at saving. You may even find that having both a traditional IRA and a Roth is right for you.

55% of Americans Say the Pandemic Set Their Retirement Plans Back 2 or More Years

A new survey from Fidelity highlights the pandemic’s toll on retirement preparedness. CNBC MAKE IT

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Gen X Emerging From Pandemic with Firmer Grip on America's Wallet

Baby boomers still account for more than half of household net worth, but their share is declining. REUTERS

How Jane Fonda Became the Most Radical Woman in Hollywood. Again

The iconic actress and activist reflects on her long life. HARPER’S BAZAAR

Elizabeth O'Brien is deputy editor at Money. She has covered retirement and health care for nearly a decade. A Brooklyn resident and mom of two boys, she navigates the alphabet soup of Medicare and the New York City subway system with equal ease. You can email her at elizabeth.obrien@money.com and follow her on Twitter at @elizobrien.