Page 25 - ARUBA TODAY

BUSINESS Thursday 18 July 2019
A25

Is there truly a need for a Roth 401(K)?

By SARAH SKIDMORE SELL ment firm. The money that
Associated Press goes in has already been
If you are saving for retire- taxed, so the withdrawals
ment, you probably know during retirement are tax
about the 401(k) and the free. The Roth 401(k) com-
Roth IRA too. But are you bines components of both,
familiar with a Roth 401(k)? allowing it to be estab-
It's a bit of a mashup — a lished within a workplace
Roth product available plan but with many perks
through your traditional of a Roth.
401(k). It allows people TAXES
to save after-tax money A key benefit of a Roth
through their workplace 401(K) is that it provides
plan that can then be with- tax-free income during re-
drawn tax-free in retire- tirement. In general, that
ment. Although it has been means those who stand
around for years, its avail- to benefit most are those
ability has picked up steam whose tax bracket may be
of late. higher in retirement than it
There's no exact measure is now. That would include
of how many plans provide young workers with earning
it. But nearly 85% of mid-size potential or even people
and large employers had who stand to have a large
a Roth offering in their de- In this Nov. 30, 2017, file photo people are silhouetted against an autumn sky walk along the inheritance later on.
fined contribution plan in Schuylkill Banks Boardwalk in Philadelphia. "The longer your time hori-
2018, according to a survey Associated Press zon, the more uncertainty
by consulting firm Callan. you have so the idea of
That's up from nearly 62% A few things to know: their paycheck for retire- drawn. A Roth IRA, on the paying it (taxes) now is
in 2015. Adoption by em- DEFINITION ment. Some employers will other hand, is an individual more attractive," said Na-
ployees remains fairly low, A 401(k) is an employer- match contributions up to retirement plan that is typi- than Voris, managing di-
in part because of a lack of sponsored retirement plan a certain level. Because cally established outside rector of business strategy
awareness. that allows workers to set the money that goes in isn't of the workplace, such as for Schwab Retirement Plan
Should you consider one? aside pretax money from taxed, it is taxed when with- through a bank or invest- Services.q

Big losses for railroads pull industrial companies lower

By DAMIAN J. TROISE throughout the remainder
Associated Press of the week. Netflix will re-
NEW YORK (AP) — Stock lease its results after the
indexes were posting slight market closes, as will IBM.
losses in early trading on UnitedHealth Group, Phillip
Wall Street Wednesday as Morris and Morgan Stanley
a weak showing for railroad are scheduled to release
operator CSX pulled indus- their results Thursday.
trial companies broadly KEEPING SCORE: The S&P
lower. 500 index fell 0.3% as of
Banks were also falling as 10:30 a.m. Eastern time.
investors worry that lower The Dow Jones Industrial
interest rates will hurt their Average fell 36 points, or
profits going forward. 0.1%, to 27,298. The Nasdaq
Technology stocks bucked composite fell 0.1%. Small-
the downward trend and company stocks did worse
put up some solid gains. than the rest of the market.
Qualcomm rose 0.6% fol- The Russell 2000 index fell
lowing reports that the gov- 0.6%.
ernment asked a court to BLEMISHED FORECAST: Nu
pause enforcement of an Skin Enterprises fell 16.7%
antitrust ruling. Microsoft, after the seller of skin care
Intel and Adobe also rose. and nutritional products
Corporate earnings re- In this July 1, 2019, file photo specialist Michael Gagliano, left, and trader Andrew Silverman work slashed its profit and rev-
ports are getting into full on the floor of the New York Stock Exchange. enue forecast for the year.
swing this week, and inves- Associated Press The company and other di-
tor have been mostly cau- rect sellers of wellness prod-
tious in their assessments of revenue to decline up to lower. Union Pacific sank formula and drugs raised ucts are facing increased
them. Earnings are still ex- 2% this year, after previ- 5.2% and Norfolk Southern its financial forecast for the scrutiny from the Chinese
pected to decline for S&P ously saying it expected dropped 5.5%. year. UnitedHealth Group government and that is
500 companies in the sec- growth. Investors read that Abbott Laboratories also rose. hampering sales growth.
ond quarter. as trouble for the entire in- gained 4.2% and pushed Several large companies Nu Skin gets 33% of its reve-
CSX plunged 11.4% after dustry and sent the stock health care stocks higher are scheduled to report nue from China, according
saying it now expects its of other railroad operators after the maker of infant earnings later today and to FactSet.q