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One Day Closer: Covering Your Retirement, Consumer Spending on the Rise, Personalized IRA Advice

Each day, One Day Closer provides the articles from across the worldwide web that help you move one day closer to a sound financial situation, a retirement you always envisioned, a safe and secure financial future for you and your family. This will be added to throughout the day with important articles.

The financial services industry (like all other businesses) is shifting...or should I say, eshifting, to a revolutionary, virtual way of doing business. http://bit.ly/sbbk3s

Imagine working and saving 40 years for a retirement that will only cover 30. It isn't implausible, in fact it happens every day. Here are some ways to avoid this nightmare scenario. http://bit.ly/umplkV

The revolutionary (and extremely helpful) personal finance tracker, Mint.com, now has an app available on iPad. Full details on how to download it here. http://bit.ly/uz0TY2

Is it really this simple? Wealth = what you earn - what you spend. Forbes explains the simple equation and why relying on it is the best way to preserve and accumulate wealth. http://onforb.es/rIWKAJ

Americans with a financial plan have accumulated an average of $127,000 in retirement savings vs. $23,000 for those without a plan. Takeaway: Develop a plan. http://bit.ly/uODfaF

Guess who lifted the U.S. economy last quarter? You. USA Today explains a renewed belief in the consumer. http://usat.ly/uhKauI

As Reuters explains, the Social Security Cost of Living Adjustment (COLA) could go through because the Medicare Part B premium didn't take as big of a bite as many thought. http://reut.rs/u3WhtV

How to frame money and riches in your life; as MarketWatch says, the richest celebrity is in your mirror. http://bit.ly/slG6dI

Do you want to use a tax refund to fund an IRA? Save this article for tax time (or we will post it again). http://bit.ly/rBQ1oq

CNN Money details why you need to stop trying to beat the market. http://yhoo.it/w4ueYw

A new rule from the U.S. Labor Department may allow you to get personalized investment advice through your 401(k) plan or IRA. http://yhoo.it/thEPci


Banks are offering some cash incentives for switching, but that "free" reward is taxable. Find out more about the bank-switching incentives and the hassles involved with them. http://sm.wsj.com/t7ZI3S 

A weapon that could be deployed soon to fight the housing crisis: cutting the mortgage debt owed by homeowners. Reuters explains how it could help. http://yhoo.it/rx2YeF

And a great way to end the workweek...a funny look at Wall Street courtesy of The Daily Show. http://bit.ly/uxB0C0



Thursday's Slott Report Mailbag

Consumers: Send in Your Questions to [email protected]

I have your book, but unfortunately it is at my cabin so I don't have access right now. I am inheriting a Roth IRA from my wife, who recently passed away at 65. It was converted to a Roth in December 2008.

First question: Is it better to keep it as a separate Roth IRA, or add it into my existing Roth IRA?

Second question: Do I have to take RMDs on this account now or later?

John in AZ

Question 1. As a spouse beneficiary you have two choices, other than taking a complete distribution.

A. You can establish a beneficiary Roth IRA or
B. Make it your own Roth IRA

If you select option B you will not have to take required minimum distributions (RMDs). With Option A, you would be required to take RMDs beginning in the year the deceased spouse would have attained age 70 1/2. Option B gives you the most flexibility. You can take distributions at any time (or not). It is your option. Distributions will be tax-free. Make sure you name your own beneficiary when you select your option.

Question 2. If you make it your own Roth IRA, you could combine it with your own Roth IRA.