How to Calculate Self-Employment Tax

If you own your own business, working for yourself, you are required to pay self-employment tax.

Figuring self-employment tax isn't that difficult; all you need to do is make use of Schedule SE.

Who Owes Self-Employment Tax?

Self-employment tax is meant to collect payroll taxes from those who are self-employed. For those who work for 'the man,' payroll taxes ' those taxes collected for Social Security and Medicare ' are automatically taken out of the paycheck. If you're self-employed, you obviously don't have that luxury, and you have to figure and pay your own tax, in the form of the self-employment tax.

You are supposed to pay self-employment tax if your net earnings from self-employment are $400 or more during the tax year. And, if you are a church employee, you are expected to pay the self-employment tax if you earn $108.28 or more during the tax year. Realize, too, that you are supposed to report all of your income, even you won't be paying the self-employment tax on it.

How Do You Figure What You Own in Self-Employment Tax?

When you figure your self-employment tax, you need to first figure your net earnings. The Schedule C can be used to figure your earnings if you are a sole proprietorship, or if you have a LLC.

If you complete a business tax return, you can use those forms to help you figure your net earnings if you have a LLC or S-Corp. In any case, once you have your net earnings, it's time to get out Schedule SE and determine what you owe in self-employment tax.

The directions are fairly simple. Schedule SE tells you exactly where to get the information you need to fill out the form and figure your tax. Once you know how much you have made you multiply your amount by the self-employment tax rate. Right now, that rate is 13.3% on up to $106,800.

If you have more than that, the result is multiplied by 2.9% and you are required to add $11,107.20 to the result. Remember that the 13.3% rate represents a reduction in regular payroll taxes, due to the 2010 Tax Relief Act. When the act expires, if it isn't extended, the rate will go up 2%.

There is also a deduction you can take for the employer-equivalent portion of your self-employment tax. Directions for taking that are on the Schedule SE. That deduction is then added to your Form 1040 or Form 1040NR to reduce your total income when figuring what you owe in income taxes. This is a small bonus, and a way to reduce the impact of paying self-employment taxes.

Paying Self-Employment Tax

Next, of course, you have to pay your self-employment tax. These taxes are usually paid along with your 'regular' taxes. You can pay throughout the year by including your self-employment tax as part of your estimated quarterly taxes.

If you know how much you owed the previous year, it can be fairly straightforward to make sure that you pay what you owe. You won't be charged penalties if you pay 100% of what you paid last year.

Caring for Aging Parents: Budgeting for Family Caregivers

Every month, Bonnie gives thanks for the arrival of her mother's long-term care insurance check.

Long-term care insurance pays for her mother's home care'which means that, while her mom receives the care she needs, Bonnie can run errands, attend programs at the kids' school and take a few moments to breathe.

The long-term care benefit also taught Bonnie the importance of a budget for care. With a budget, Bonnie can plan appropriately for her mom's care needs, giving Bonnie a sense of control in a situation that can feel so out-of-control.

The budget also means that Bonnie schedules regular time off for herself. Looking forward to having a break has become a critical coping strategy for Bonnie. She finds the she can manage her stress much better when she knows she soon will have a few hours to herself.

Role Reversal

Bonnie isn't alone in caring for her mom; a 2009 survey sponsored by National Alliance for Caregiving in collaboration with AARP found that that 29% of the U.S. adult population, or 65.7 million people, provide care to a family member.

Unfortunately, caregiving comes as a surprise to many. According to a recent survey of Americans aged 35 and older sponsored by Genworth Financial, long-term care is rarely top-of-mind until an event actually occurs.

The stress of helping a parent or another family member after a crisis or a diagnosis can be overwhelming. Understanding how to create a budget for care can be critical in helping to manage that stress.

These suggestions can help you create your care-giving budget:

1. Think short-term. Look at the needs for each month for your parent and for yourself. During the day and night, when will your parent or family member need care? During the day, when do you need a break?

2. Think long-term. The true struggle of a budget for care is determining how long you'll need a budget. It's so difficult to predict how long caregiving will last. So, do your best to map out how long finances and benefits, like long-term care insurance, could last. Use a  cost-of-care calculator, like this one from Genworth Financial,  to understand what costs will look like next year, in two years and in five years.

3. Be flexible. Care needs will increase which means the amount of help you and your parent will need will increase. Recognize that the care budget will change as your parents care needs change.

4. Pick a day each month that you'll review the budget. Perhaps on the 15th of each month you review the monthly budget. Ask yourself:

Is my parent getting the help he or she needs when he or she needs it? Am I getting the breaks when I need them?

Your budget may stay the same. Or, it might adjust as care needs increase in the morning or at night or during another time during the day. Or, it may change depending your need for much-deserved time away from caregiving.

5. Pick a day each year that you'll review the budget. Perhaps November 30 becomes the day that you review how you used finances during the year to pay for care. Consider: What worked well that you'd like to bring into the next year? What would you like to adjust or change?

6. Pass on the lessons learned about budgeting. If you have children, teach them what you've learned about a budget. This  article from SmartMoney.com offers suggestions and ideas on teaching kids about saving money for their own future.

Where Can You Find Help?

Because budgeting can be intimidating, look to professionals who can offer guidance. A financial planner and a geriatric care manager can be great resources for you. The financial planner can offer insights on managing the money; a geriatric care manager, typically a social worker or nurse, can help you find and organize your parent's care.

You can find a financial planner through National Association of Personal Financial Advisors and can learn more about hiring a geriatric care manager here.  You also can purchase a subscription to  tools that can help you organize your parent's care.

It's Time For Another Movement ' Life Insurance Style

The start of another movement

Stories like the two below are the ones I wish I didn't have to share.

Unfortunately, I know similar stories like it occur each and every day.

*****

It had been three years since she lost the love of her life.

Sitting in my office a tear forms in the corner of her eye.

Thinking about that day that she walked into the kitchen to find the love of her life gone.

Unexpectedly and prematurely gone.

It was way to soon.

I can remember the first meeting we had when she shared the details of that tragic day when she lost her husband.

Healthy at the ripe age of 50, they had many more years ahead of them.

Even his healthy lifestyle and routine physicals couldn't stop him from having a heart attack that ended up taking his life.

Having to deal with all the emotional aspects of losing your spouse is draining. Thankfully the one thing she has not had to worry about is the finances.

Why?

Life insurance.

Eerily Similar''

Just a few days later in the same office I have another meeting. This meeting is all too similar as the initial meeting I had with the other client. She, too, had lost her loving husband prematurely.

She was still in the grieving process and hadn't quite grasped that he was no longer here.

The big fundamental difference between the two occurrences was life insurance.

In this case the husband did have some life insurance but not nearly enough; only having a $25,000 policy.

What does that mean for his surviving spouse? She is left with a mortgage, debt, not nearly enough in retirement, and the outlook of having to work until at least 70 ' if she can retire at all.

Two Tragic Losses, One Even More Tragic Outcome

Sitting in my office and witnessing these two relatively identical situations was just another reinforcement of why life insurance is so important.

We all think that nothing is every going to happen to us; that we're all invincible.

I'm sure these two widows will be the first to tell you that that is not the case.

Introducing Another Movement

You might recall another movement I did called the Roth IRA Movement where I shared the importance of saving and the benefits of doing so with a Roth IRA. Today I'm announcing another movement, this one called the Life Insurance Movement.

Its motivation is to make sure that every couple that is in need of life insurance has it, and make sure they have enough coverage.

I'm excited to share that I formed strategic partnerships with BankRate.com, LifeHappens.org, InsuranceProviders.com, Insure.com and many others to help bring awareness of the importance of having life insurance.

Why Life Insurance?

The stories above should solidify the important of having life insurance.    But if not, here's something to chew on:

According to Genworth,

52 million American adults with household incomes between $50-$250k don't have life insurance coverage. Of those insured, it will only cover them for 3.6 years.

3.6 years! That's not even close to being sufficient.

Even if you have life insurance, chances are it's not enough. It's time to get your family protected!

How to Participate

The Life Insurance Movement will occur Wednesday, August 22nd.   The sole purpose of this event is to bring awareness to a very important topic and spread the word.   To encourage you to spread the word we're going to be having a raffle like give away for those that help out.  While we definitely want more bloggers on board, there will also be incentives for non-bloggers to get rewarded for sharing the event through Facebook, Twitter, and Pinterest.

We don't have all the prizes worked out yet, but stay tuned for some really cool ones that I know will give you incentive to spread the word about the life insurance movement.

Top 5 Savings Accounts Online ' Start Making Interest Today!

My savings account is paying me more interest than I can handle.

Haha- yeah right!

For the past several years my clients have been griping (me included) about how their savings accounts are paying next to nothing.

Many feel like they are paying the banks just to keep their money with them.

Can you relate?

Looking for a top savings account to stash away some cash for a future financial goal should be part of your financial strategy.

Saving for future purchases and expenses is one of the best things you can do to stabilize your financial situation.

Whether you are saving up an emergency fund or just preparing to spend money on a nice vacation next year, you need a great savings account to hold your money.

What to Look for in a Top Savings Account

There's no need to let your money sit in an account that doesn't pay interest. That's one of the worst things you can do with your money because the value of your money will slowly go down due to inflation. You need to generate some interest to combat inflation just to maintain the spending power of the money you have.

Then again interest isn't everything. So what exactly should you look for in a top savings account?

Interest ' High Yield

For me, interest comes first. Generating interest helps protect your money from inflation. Even if inflation is really low, getting some small interest on the side will help you bolster your account over time. Interest isn't the only important factor, but it never hurts to have someone paying you to store your cash with them.

Customer Service

Having great customer service is another key aspect of a great savings account. If you earn a little bit more interest at one bank but the customer service is awful you will probably regret it. I like to stick to firms that have solid reputations or that I've had previous experience with.

Access

Lastly, you want easy access to your funds. If you have to jump through a lot of hoops to pull money out of your emergency fund during an emergency' you won't exactly be thrilled. Do you have to go to a physical branch? Or can you transfer funds online using your smartphone? Access can be a tiebreaker when you are comparing two very similar banks.

Five Top Saving Accounts to Consider

Here are five great saving accounts to consider.

Ally Bank

Ally Bank is one of my favorite banking institutions. (Yes, we bloggers are a weird bunch and have favorite banking institutions while the rest of the world goes about their normal lives.)

Why do I love Ally so much? Let me quote myself from an article earlier this year, Best Online Checking Accounts:

Ally Bank was built on the premise of getting rid of all the crazy fees that normal banks charge while giving customers great rates and great customer service.

I mean, seriously? How can you not love that? A bank that is fighting to end banks gouging customers will get my vote every time. In the linked article above we told you how great Ally's checking accounts were, but the saving options are great, too.

Here's what you get with Ally:

• Industry leading high yield interest rate. You won't earn more interest with a reputable online bank.
• No minimums. At all. That means no minimum deposit, no minimum balance requirement. No minimum balance fees. In fact, you can open an account with as little as $1.
• Easy deposit options. You can fund your account or add additional deposits via easy online transfer from your current bank, mailing in a check, wire transfer, or simply scanning in your deposit.
• Easy access and management. The user interface is top-notch and you'll be able to transfer funds to and from your other bank easily.
• Other account options. You can start with a savings account and grow your finances with Ally. They offer a robust set of accounts ranging from checking to savings to CDs and IRAs.

ING Direct Orange Savings Account

I've had an account with ING Direct longer than I have with Ally, to be honest. That's because ING Direct was one of the first reputable online banks to exist. As with any industry they now have some stiff competition from Ally, but I still love them.

Here's what you get with ING Direct:

• Extremely competitive interest rate. The difference in rates between Ally and ING is so small most people wouldn't notice. If you aren't seeking absolute best interest and are looking at the bigger picture, keep reading.
• No minimums. Like Ally you won't be hit with any minimum balance fees nor will you have to send a ton of money to open an account. You can open an account with as little as $1.
• Easy deposit options. Opening an account is easy ' you just link a checking account from another institution like you would with any other bank. Then you transfer your funds over.
• Easy access and management. ING's user interface is one of the best around. One of the unique things ING offers is 'sub-accounts' where you can open up mini-accounts to hold your saving goal money. So you can have a main Savings Account, but have mini-accounts for Vacation Fund, Emergency Fund, and so on.
• Other account options. You can start with a savings account and grow your finances with ING. They offer a robust set of accounts ranging from checking to savings to CDs, mortgages, and investing.

American Express High-Yield Savings Account

Yes, American Express, the credit card company that offers fantastic cash back now has a banking arm that offers great interest on your account.

Rates are currently very competitive with some of the larger, well known online banks. Account access is not as sophisticated, but again they are only offering two simple products. If they had a full suite of financial products like mortgages and checking accounts on top of the savings account and CD I will be more stringent. But this is a pretty basic product: deposit money, earn interest, watch it grow.

AMEX also has a 36-month CD that you can drop your money into to earn a slightly higher rate of return. However, the difference is so small that I can't recommend locking your funds up for 3 years. (If you elect to close a CD before its maturity date you pay back 3 months of interest. That's dumb.)

Here's what you get with AMEX's High Yield Savings Account:

• Great interest. To attract customers, American Express often has some of the highest interest rates available.
• Simple options. You have two account options: high-yield savings and certificate of deposit. Two simple choices rather than an array of confusing options.
• No minimums. You don't have a minimum balance requirement, and you don't get hit with a fee for letting your balance get too low.

Whichever way you go, you'll end up with American Express' renowned customer service to back you up. You probably won't need it, but it is always nice to know it is there.

Discover CDs

Just like American Express, Discover has gotten into the banking business. Their rates are competitive with other online products, so it is definitely a firm to include in your search for a top savings account.

The product offerings are similar with Discover, but we really like Discover's online CD. The rates on the CDs are very nice compared to some other players in the industry.

Here's what you get with Discover Bank's Online Savings account:

• Great interest. To attract customers, Discover often has some of the highest interest rates available.
• Several account options. You can start with a savings account and expand to an online certificate of deposit, IRA CDs, or a money market account.
• Low minimums. This is the only place that you might downgrade Discover on a bit. The other institutions above require no minimum deposit to open an account. Discover requires a $500 minimum deposit. However, there are still no minimum balance requirements or fees for going below $500, so it isn't much to worry about.

1000th Post Giveaway!

Pinch me. I think I'm dreaming'..

When I first started this blog almost four years ago, I never'.I repeat'.NEVER thought I would ever get to 1000 posts.

At the time, I had no idea what a blog was. None!

I thought a blog was to be on Myspace. Haha!! So much has changed.

Now blogging is very much a way of life ' I love it!! In fact our household loves it! My wife has her awesome blog, House of Rose, and we started a blog together, Dollars and Roses.

And although my kids don't know it yet, I've already bought them their own domains. Yes, I'm serious.

Blogging is definitely here to stay so that's why I'm excited to do this awesome giveaway celebrating my 1000th post. Holla!

Tell me about the giveaway already!

Okay, this giveaway was totally impromptu. First, I want to thank my awesome wife for helping me put this post together. Her mad camera and Pic Monkey editing skills capture exactly what I envisioned for this post. Thanks baba!!

First prize:  $20 In-N-Out Burger gift card. 

 

If you live on the west coast, I don't have to tell you how great this burger is.  If you don't, then what hole have you been living in?!   For those that don't know, let me share with you how great In-N-Out Burger is.   Mmmm'.Double-Double with cheese, please!

I realize that if you don't live in a state that has In-N-Out, it will be hard to cash in.   If you win, this just gives you a viable excuse to visit a state that does.  You'll thank me later.

Second Prize: 4 Hours to Change Your Life

 

Tim Ferriss' book Four Hour Work Week is one, if not, one of the greatest books I've ever read.  (You can read some other great books for entrepreneurs).  This book has completely changed the way I approach my life and business.  It is a must read, hence; why I'm giving it away.

Third Prize: 3 Pack of Inspiration

Some people are just born to be leaders. They infect you with pure optimism and after you meet them you can't help but walk away feeling better about yourself.    One such individual is Ben Newman.

I've had the privilege of meeting Ben and becoming great friends with him.  Before I met Ben, he had already finished his first book, Fight the Good Fight.   Since then he finished his second book, Pocket Truths for Success.  And his third book, Own Your Success is being published by Wiley.  Go Ben!

I'm so proud of this guy and can't help recognize him for his constant enthusiasm.  So one lucky winner gets all three of his books. (Note: his third book is not released yet, so you'll get it as soon as it's released.

Fourth Prize:  The Sexiest T-Shirt Ever!

If there was a title for the 'Sexiest Personal Finance T-Shirt', this one would be it and I'm proud to say I'm an owner.

This shirt is inspired by J. Money from Budgets are Sexy and thanks to Brad from Enemy of Debt, one lucky ' VERY LUCKY ' individual will be able to sport this shirt and show it off to all your family and friends. (Note: Your shirt will be gray with black text ' pure stylin'!)

The Grand Prize!

This is definitely not the best gift of the giveaway'. I mean look at all those awesome gifts above!

One person gets to go on a shopping spree at Amazon.com in the tune of $250. Check it!

Here's How to Enter

Below you'll see all the different variations to win. If you have any questions, just let me know.

Good luck and thanks for being a reader!!

a Rafflecopter giveaway

The Cheapest and Simplest Chicken Pasta Recipe You've Ever Seen

This recent Valentine's Day I wanted to surprise my wife by cooking a romantic dinner at home.   The last several years we've gone out to eat at various restaurants have been disappointed with the quality of the food and the price we had to pay for it.   Seeking ideas I hit the web and found a neat recipe for Chicken Piccata at my buddy JD's blog Get Rich Slowly.   He had an article entitled Recession Romance and shared some other neat ideas to celebrate V Day without breaking the bank.

When it comes to new recipes, I'm a sucker for any Italian dish, so this recipe was right up my alley.   The one slight change that I implemented was I wanted to make it a pasta dish so I added some thin spaghetti to the mix.  

If you're looking for a new tasty recipe, I encourage you to give it a try.

If you're looking for a tasty shrimp pasta recipe, head over to Gen X Finance for a recipe I shared earlier.  Without further ado, here's the the step by step instructions as well as an idea on how much it is going to cost.  Time to hit the kitchen to try out this chicken pasta recipe!

List of Ingredients and Cost of Chicken Pasta

Most of the ingredients are already found in our cupboards, hence why I didn't include those prices.   The only additional purchase was a bagged Caesar Salad that cost $4.49.    With the salad included, the entire dinner cost me $14.84. That's it!    It's the cheapest and probably the best V Day meal I've ever had.

Chicken Piccata Pasta Directions

If you're not a professional lemon squeezer (as I'm not), I suggest you buy a few extra lemons.   Plus, if you're using my pasta idea, you'll need some more lemon juice for the sauce.

Preparing The Chicken

Sprinkle both sides of chicken with salt and pepper.   Dip the chicken into the flour to get a decent layer around it.

In large sauté pan, melt 2 Tablespoons of the butter with the olive oil over medium-high heat. Add chicken and cook just until browned, 3 minutes per side. Transfer chicken to a plate.  At this point in time, you can also start boiling the pasta.   I chose thin spaghetti, but any pasta will do.

Cooking The Chicken

Add broth, lemon juice and capers to the same pan. Here's where you could add a bit more lemon juice and broth to make sure you have enough for the sauce for the pasta.  Bring broth to a boil over medium high heat, scraping pan to get all the good crusty bits.  Return chicken to the pan and simmer 5 minutes.

Transfer chicken to plates or platter.  Remove pan from heat.   Add remaining 2-4 Tablespoons butter to sauce, whisking to melt.  This is where you want to make sure you have plenty of liquid for the sauce.   Since the original recipe that I got didn't account for the pasta, I literally used every drop of the sauce from the pan.   Next time I'll be sure to add the extra butter, oil, stock and lemon juice to make sure I have enough.

Serving The Chicken Piccata Pasta

Pour sauce over chicken and garnish with parsley.  That's it!   It really is as simple as it looks.   It has to be rather simple, because even I pulled it.   Doesn't it look yummilicious?

Spouse Approval of The Chicken Pasta

The other true test was impressing the wife.  Trying new recipes has the same level of excitement as apprehension, especially on Valentine's Day.   What was the final verdict?   Take a look at the beautiful smile below.   She loved it! Matter of fact, so did I.   I wasn't sure about the lemon flavor since it's not in my usual cooking arsenal, but the overall taste was fantastic.  Just doing this post, makes me crave it all over again.

Give it a try and tell me your thoughts.   Nothing like getting some feedback from the readers.

Tagged as: cheap pasta recipes, chicken pasta recipes, chicken piccata, Simple chicken pasta recipe

Start Saving For Retirement Today: Best IRA Online Brokers

As a financial advisor one of the biggest frustrations about our industry is for the young investor that want to get started investing into an IRA.

Why is it frustrating?

Because most big firms don't want to help new investors.

Otherwise known as 'small investors'.

Yes, you can walk into an Edward Jones office and open an IRA, but you're going to have to pay an annual custodial fee.

They aren't the only ones.  All big brokerage firms will charge $40-$75 per year just to have the account open.

In addition, some firms will charge you a small account fee if you don't generate enough commissions or fees or the year.

Over and above that, you're either going to have to pay a commission for each mutual fund, stock or ETF trade that you place or you have to pay an advisory fee which will be anywhere from .75% to 1.5% of your account balance.

Cha-ching!

As you can see, yes you can open the account with a big brokerage firm, but they're going to gouge you in fees making it nearly impossible for any new investor to make any money.

So what's the alternative?

Open an IRA with an Online Broker

Introducing online brokers for your IRA. Having started in a big box brokerage firm, I was oblivious to all the online options that exited. Yes, I've heard of Fidelity. Yes, I've heard of Vanguard. And, yes, I've heard of E*TRADE, but I had to admit I really didn't know how it works opening an account with an online brokerage.

Originally I started doing some investigating and was almost blown away at how cheap and easy it is to open an IRA with an online brokerage. Most of them don't charge any account fees. They won't ding you if you don't have a small account size and even more impressive was that most of them offer customer support whenever you need it.

If there is a downside, you don't get the option of actually going to an office and sitting down with an advisor, but even places like Scottrade offer that. In this post, I want to do a quick rundown of some of the best IRA brokers that you can open up an account with online today.

Online Brokers with Most IRA Options

If you're looking to open an IRA with an online brokerage firm, you have a lot of options. Here are some of the best ones to choose from and why we like them so much.

Open an IRA with Scottrade

Scottrade is one of the best online brokerage firms around. Why? Because not only is it an online brokerage firm with extremely low trade costs, but you can also go to a local Scottrade office to talk with a broker directly if you like. It's like getting the best of both worlds: $7 trades (some of the lowest around from a major brokerage) and in-person help when you need it.

Scottrade lets you trade stocks, options, mutual funds, ETFs, bonds, CDs, and Treasury products. The more complicated and niche investments like futures and forex are not available, but the average investor won't need either of those.

Open an IRA with E*TRADE

If E*TRADE had local branches it would be tied with Scottrade.

However, if you're looking for some of the best online trading tools available and a firm that has been in the industry for a long time, E*TRADE is a great choice. Pricing is just slightly higher than Scottrade's at $9.99 per trade, but some of the additional tools you receive can be worth it.

With E*TRADE you can trade everything from stocks to bonds, mutual funds, ETFs, options, futures, and forex.

Plus, right now E*TRADE is letting you trade absolutely free for 60 days. If you transfer enough money to them they'll also give you an account bonus starting at $50 for transferring $25,000. (The maximum bonus you can get is $500 for transferring $250,000.) To receive this offer use the banner below.

Open an IRA with Vanguard

Vanguard is a fantastic firm with a 'slow and steady' mentality. I would rate them higher, but their brokerage firm costs are a little pricey and the number of investment options is not quite as diverse as the ones above.

That's because Vanguard is all about indexing and low costs. If all you need is to open an IRA and grab a few index mutual funds or index ETFs, Vanguard is a great choice. If you're looking for exotic investments or to trade a lot of stocks, it may not be the best choice.

The fee commission structure is based on how much money you have in your account. Trades start at $7 for the first 25 trades, then jump to $20 per trade, if your account balance is less than $50,000. After that the fees get a lot lower: trades at $7 if your account has less than $500,000 in it, then $2 up to $1,000,000, then free or $2 depending on how many trades you have.

Open an IRA with Zecco

Zecco is an interesting firm because it was one of the leaders in drawing down commission prices across the board. The firm recently merged with TradeKing which used a similar strategy. Stock trades start at $4.95 per trade and you get access to stocks, ETFs, bonds, mutual funds, and options. These are the lowest trades available from a reputable company.

Open an IRA with ShareBuilder

ShareBuilder is a great company to open an online IRA with if you are just starting out and don't know what to invest in. The company's existence is tied to helping you automate and build up the habit of investing. Your Roth IRA or IRA is a great place to learn that habit.

The investment options are basic as well, but should meet the needs of most investors. You get access to stocks, ETFs, and mutual funds.

Trades don't get any cheaper than at ShareBuilder. If you set up automatic investing your stock and ETF trades are only $4. That's incredibly low and a nice way to start out building a new portfolio in an IRA. If you need more of the crazier investments like futures, options, and forex then ShareBuilder isn't for you. For everyone else, this is a great way to start your IRA investing.

Plus for a limited time you'll get a $5o bonus when you open an account and fund it with more than $2,000.

Open an IRA with Betterment

Out of all of the brokerage options listed here Betterment is likely the award winner for most unique.

What exactly does that mean? Well, Betterment is an online brokerage firm whose goal is to make investing as simple as possible. With so many options out there: stocks, ETFs, bonds, index funds, actively managed funds, and a multitude of other niche products, investing for retirement soon becomes a complicated mess of alphabet soup.

Not so with Betterment. The company essentially has one big account and then a meter between how risky and how conservative you want your portfolio to be. That's your only choice. The company then invests in a basket of either stock ETFs or Treasury bond ETFs depending on the allocation you choose. You don't have to pick the individual investments. The only choice is what percentage for stocks and what percentage for bonds.

It's simple, easy, and makes sense for those that want a 'set it and forget it' investing style. Fees are low ' but are based on percentage of assets invested. Fees range as low as 0.15% of assets invested to 0.35% of assets invested. That's equivalent to as much as $35 on a $10,000 balance to as little as $15.

Plus, for a limited time if you open an account Betterment will give you a $25 account bonus for free.

Tagged as: Betterment, E*Trade, online brokers, Open an IRA, Rollover IRA, Roth IRA, Scottrade, Sharebuilder, TradeKing, Traditional IRA, Vanguard, Zecco