Employee Motivation Essay Example

Employee Motivation Essay In order to have employers who are committed whole heartedly the leaders must be optimistic in creating employees motivation. The desire of the leader is to have employees who are committed in their work no matter how the circumstances are. In order of maximizing the productivity of the business or the business environment the leader need to respond and acknowledge the different and often unique needs of their employees. The needs of the employees are usually unique and the leaders need to understand the personal needs according to their significance. The leaders should consider and provide the desires of his or her employees, i.e. security, affiliation, feeling of power, sense of ownership competence, meaning achievement et-cetera. A leader or manager who is optimal in leadership will acknowledge their employees when they do their best, he will know what the best he can do to his people and know the interest which the employees regard to be the best. Motivation will occur when the m anager or the leader knows his employees, understands how their day to day events or undertaking may affect their performance. A good leader will know what can motivate his or her employees and therefore he or she will develop strategies to motivate them (Weightman, 2007).Work place motivation can affect the out put in terms of quality and quantity of the business. For a continued growth in education around the world motivation and job satisfaction is essential factors among the teachers as well. Motivation strategies, skills and professional knowledge, resource and the level of competence will determine performance and success of the education system in any given country. For a greater productivity of professionals in teaching and a strong organization development with a good working environment, there is need to tailor motivation, towards these human resources. Motivation of the employees in the education system has become an important undertaking due to the current state of econo my globally.Teachers in both private and public sectors should be viewed as assets in which to increase the level of production and improve on the working environmental conditions. Motivation increases the productivity of employees and should be viewed as an integral part in day to day administration and policies. Due to societal changes teaching professionals has continued to place more occupational demand. Due to the complex issues of societies and environment, it is a concern to both the national governments globally and the administrative staffs to look into motivation in order to increase the productivity levels of teachers who often address complex issues of social concern often with limited funding (YesPakistan.com Staff Writer 2004).Motivation towards teachers has been examined and the implication towards professionals in teaching is now more focused.Strategies to Motivate TeachersMany primary and secondary schools lack quality education, the main reason being lack of teache rs’ motivation that results to lack of proper teaching. This is a problem that can erode of nation schools standards. If teachers are not motivated it means that most of the time they can be absent from work, they may leave the profession or they may become indifferent in classroom practices. As a consequence any form of government may incur a lot of expenses in training other teachers to replace those who have left the profession.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Teaching performance among teachers is related to various sources of job satisfaction. Teachers can be dissatisfied by the payments and the fringe benefits, advancements, education policies and the system of administration and perhaps material rewards. Skills knowledge and competencies can be realized when challenging and often difficult tasks in education system can be mastered or tackled. A fair balance between employees input and their output need to be struck. The employee inp ut would include enthusiasm, skill level, hard work, tolerance etc, while output would include benefits being recognized, good or appropriate payment. In any profession good payment is an incentive that encourages the workers or employees to work harder.They become more enthusiastic and dedicated to their work. Good pay will mean that the employees have financial security. With financial security the employees will concentrate on their work and they don’t worry about how the end will meet. If the salary is inadequate the teachers will be forced to be absent from classroom and go and take an extra job to supplement the meager salary they get from teaching. If the balance is realized  Ã‚   there will be a strong and a productive relationship among employees and they will feel satisfied and therefore become motivated in their work if the teachers (as it happens to all employees) feel that their input are greater than their output they automatically become de-motivated. The res ponse to de-motivation can be of different ways that is they will reduce their effort of performance they can also disrupt the activities of the organization or they can become disgruntled (http://www.mindtools.com/pages/article/newLDR_96.htm)The ministry of education expects high performance from teachers and is always curious about it. The ministry will also require certain degree of hard work, patriotism, loyalty, dedication, commitment from his or her employees. Similarly motivational strategies should not be underemphasized as motivation will promote the productivity of teachers. There are factors that influence the desire of a person or the behaviour of a person in the performance of work. These desires are explained by the â€Å"need-based† theories as explained by Abraham (1970). Motivation is explained as to occur within an individual†that is intrinsic†. According to this theory there are five needs of outermost importance to a person this include esteem, self actualization, physiological affiliation and security.Esteem needs are those of achievement, independence, respect, recognition, etc. Self actualization includes realization self development or realizing the full potential of a person. Physiological needs will include: food, pay, clothing, shelter, good working environment et-cetera. Affiliation needs are the needs of being accepted in work place, loved and the sense of feeling that you are part of the team or group. On the other hand security needs will include: job security, protection from any form of threat, etc. According to Abraham a need seizes to be a need once it is satisfied and can no longer motivate an employee. The employee can only be motivated by the need at the upper hierarchy (http://www.mindtools.com/pages/article/newLDR_96.htm.)Another theory that is based on the need to fulfill as a result to satisfy workers is the two factor theory. According to this theory, job satisfaction and job dissatisfaction are ind ependent factors; (hygiene factors) are those environmental factors that result to work dissatisfaction. Absence of hygiene factors will result to decline in work performance. Hygiene factors are associated with the job content that is the work condition, salary, relationship with the leaders, the day to day policies and administration, technical supervision etc. However these factors are not sufficient for job satisfaction. The factors that make the workers to work hard are the motivating factors. These are the factors that are related to what people actually do in the work place like, recognition, advancement et-cetera. The individual needs to have these factors which are referred to as the motivating factors (http://accel-team.com/motivation/.). Both the motivating factors and the hygiene factors are important, they act in different ways. If the concepts are applied in education system, an improvement of teaching, will results to improvement of schools. Then efforts should be gea red towards motivation of teachers and improve their capabilities. A good social physical and psychological climate in classroom can be created by teachers who are highly motivated and are â€Å"need satisfied†. A teacher is likely to integrate knowledge, skills if the job is satisfying.There are other factors that play a big role in enhancing teachers’ commitment in their job. These factors include meaningful and a work that is varied, psychic rewards,, support from the administration, participation in day to day activities and in decision making, positive feedback, availability of resources and payment which are reasonable according to the workload et-cetera. On the other hand merit pays and rewards given to teachers for effective teaching as extrinsic incentives do not affect job satisfaction. These extrinsic factors arise from the environmental working condition, while the intrinsic factors are the ones that motivate teachers to work to their desirable level of per formanceTo satisfy teachers and meet the goals of education it is necessary for the policy makers and administrators in the education system to understand job satisfaction needs for teachers and design a system of reward.In order for the teacher to meet their basic needs of shelter, clothing, food and health care, there is need for adequate policies and administration strategies in terms of good payment and benefits that correspond to the kind of job they do. Satisfying the needs of the teachers improve their performance, and enable them to function properly as their psychological well being is improved. Dissatisfaction with the job and lack of motivation resulting from lack of fringe benefits, underpayments, lack of advancements and rewards etc can result to teachers leaving the profession. If the ministry of education fails to pay attention to the teachers self esteem and dignity, they feel cheated, insecure and sometimes feel that they are underpaid. If such situations arise it w ill lead to casual disregard attitude towards work, frustrations, finally rebellion which will eventually result to strikes.Factors that motivate teachers do not depend only on administration and education policies but also on economic factors, social and cultural factors. â€Å"Equity and fairness† in all the work places determine motivation to employees and job satisfaction.In any department it is required that professionals utilize their mental and energy, take part in the production process of goods and services, interaction of professionals with peers and also define the professionals social status.Motivation to increase productivity of professionals in teaching can be increased through environmental and situational approaches. The administrative practices which were used traditionally may not be of any use. Professional teaching practices and the styles of teaching varies in accordance to the social needs and education of the staff. It is therefore necessary for the adm inistrators to change the styles of management in accordance to the requirements of teachers and also the students in order for the success of the education system.Reference:Adams Equity Theory; Balancing Employee Inputs and outputs, retrieved on 14th September 2008 from http://www.mindtools.com/pages/article/newLDR_96.htmEmployee motivation, the organizational environment and productivity, retrieved on 14th September 2008 from http://accel-team.com/motivation/.Weightman T (2007): Making Motivation Work: 30 Practical Exercises; Get to the heart of motivation quickly and effectively; retrieved on 14th September 2008 from http://www.multimediahrd.com/item-Making-Motivation-Work-30-Practical-Exercises.html.YesPakistan.com Staff Writer (2004): Why Pakistans primary school teachers lack motivation retrieved on 14th September 2008 from http://www.yespakistan.com/education/teacher_motivation.asp. Employee Motivation Essay Example Employee Motivation Essay In order to have employers who are committed whole heartedly the leaders must be optimistic in creating employees motivation. The desire of the leader is to have employees who are committed in their work no matter how the circumstances are. In order of maximizing the productivity of the business or the business environment the leader need to respond and acknowledge the different and often unique needs of their employees. The needs of the employees are usually unique and the leaders need to understand the personal needs according to their significance. The leaders should consider and provide the desires of his or her employees, i.e. security, affiliation, feeling of power, sense of ownership competence, meaning achievement et-cetera. A leader or manager who is optimal in leadership will acknowledge their employees when they do their best, he will know what the best he can do to his people and know the interest which the employees regard to be the best. Motivation will occur when the m anager or the leader knows his employees, understands how their day to day events or undertaking may affect their performance. A good leader will know what can motivate his or her employees and therefore he or she will develop strategies to motivate them (Weightman, 2007).Work place motivation can affect the out put in terms of quality and quantity of the business. For a continued growth in education around the world motivation and job satisfaction is essential factors among the teachers as well. Motivation strategies, skills and professional knowledge, resource and the level of competence will determine performance and success of the education system in any given country. For a greater productivity of professionals in teaching and a strong organization development with a good working environment, there is need to tailor motivation, towards these human resources. Motivation of the employees in the education system has become an important undertaking due to the current state of econo my globally.Teachers in both private and public sectors should be viewed as assets in which to increase the level of production and improve on the working environmental conditions. Motivation increases the productivity of employees and should be viewed as an integral part in day to day administration and policies. Due to societal changes teaching professionals has continued to place more occupational demand. Due to the complex issues of societies and environment, it is a concern to both the national governments globally and the administrative staffs to look into motivation in order to increase the productivity levels of teachers who often address complex issues of social concern often with limited funding (YesPakistan.com Staff Writer 2004).Motivation towards teachers has been examined and the implication towards professionals in teaching is now more focused.Strategies to Motivate TeachersMany primary and secondary schools lack quality education, the main reason being lack of teache rs’ motivation that results to lack of proper teaching. This is a problem that can erode of nation schools standards. If teachers are not motivated it means that most of the time they can be absent from work, they may leave the profession or they may become indifferent in classroom practices. As a consequence any form of government may incur a lot of expenses in training other teachers to replace those who have left the profession.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Teaching performance among teachers is related to various sources of job satisfaction. Teachers can be dissatisfied by the payments and the fringe benefits, advancements, education policies and the system of administration and perhaps material rewards. Skills knowledge and competencies can be realized when challenging and often difficult tasks in education system can be mastered or tackled. A fair balance between employees input and their output need to be struck. The employee inp ut would include enthusiasm, skill level, hard work, tolerance etc, while output would include benefits being recognized, good or appropriate payment. In any profession good payment is an incentive that encourages the workers or employees to work harder.They become more enthusiastic and dedicated to their work. Good pay will mean that the employees have financial security. With financial security the employees will concentrate on their work and they don’t worry about how the end will meet. If the salary is inadequate the teachers will be forced to be absent from classroom and go and take an extra job to supplement the meager salary they get from teaching. If the balance is realized  Ã‚   there will be a strong and a productive relationship among employees and they will feel satisfied and therefore become motivated in their work if the teachers (as it happens to all employees) feel that their input are greater than their output they automatically become de-motivated. The res ponse to de-motivation can be of different ways that is they will reduce their effort of performance they can also disrupt the activities of the organization or they can become disgruntled (http://www.mindtools.com/pages/article/newLDR_96.htm)The ministry of education expects high performance from teachers and is always curious about it. The ministry will also require certain degree of hard work, patriotism, loyalty, dedication, commitment from his or her employees. Similarly motivational strategies should not be underemphasized as motivation will promote the productivity of teachers. There are factors that influence the desire of a person or the behaviour of a person in the performance of work. These desires are explained by the â€Å"need-based† theories as explained by Abraham (1970). Motivation is explained as to occur within an individual†that is intrinsic†. According to this theory there are five needs of outermost importance to a person this include esteem, self actualization, physiological affiliation and security.Esteem needs are those of achievement, independence, respect, recognition, etc. Self actualization includes realization self development or realizing the full potential of a person. Physiological needs will include: food, pay, clothing, shelter, good working environment et-cetera. Affiliation needs are the needs of being accepted in work place, loved and the sense of feeling that you are part of the team or group. On the other hand security needs will include: job security, protection from any form of threat, etc. According to Abraham a need seizes to be a need once it is satisfied and can no longer motivate an employee. The employee can only be motivated by the need at the upper hierarchy (http://www.mindtools.com/pages/article/newLDR_96.htm.)Another theory that is based on the need to fulfill as a result to satisfy workers is the two factor theory. According to this theory, job satisfaction and job dissatisfaction are ind ependent factors; (hygiene factors) are those environmental factors that result to work dissatisfaction. Absence of hygiene factors will result to decline in work performance. Hygiene factors are associated with the job content that is the work condition, salary, relationship with the leaders, the day to day policies and administration, technical supervision etc. However these factors are not sufficient for job satisfaction. The factors that make the workers to work hard are the motivating factors. These are the factors that are related to what people actually do in the work place like, recognition, advancement et-cetera. The individual needs to have these factors which are referred to as the motivating factors (http://accel-team.com/motivation/.). Both the motivating factors and the hygiene factors are important, they act in different ways. If the concepts are applied in education system, an improvement of teaching, will results to improvement of schools. Then efforts should be gea red towards motivation of teachers and improve their capabilities. A good social physical and psychological climate in classroom can be created by teachers who are highly motivated and are â€Å"need satisfied†. A teacher is likely to integrate knowledge, skills if the job is satisfying.There are other factors that play a big role in enhancing teachers’ commitment in their job. These factors include meaningful and a work that is varied, psychic rewards,, support from the administration, participation in day to day activities and in decision making, positive feedback, availability of resources and payment which are reasonable according to the workload et-cetera. On the other hand merit pays and rewards given to teachers for effective teaching as extrinsic incentives do not affect job satisfaction. These extrinsic factors arise from the environmental working condition, while the intrinsic factors are the ones that motivate teachers to work to their desirable level of per formanceTo satisfy teachers and meet the goals of education it is necessary for the policy makers and administrators in the education system to understand job satisfaction needs for teachers and design a system of reward.In order for the teacher to meet their basic needs of shelter, clothing, food and health care, there is need for adequate policies and administration strategies in terms of good payment and benefits that correspond to the kind of job they do. Satisfying the needs of the teachers improve their performance, and enable them to function properly as their psychological well being is improved. Dissatisfaction with the job and lack of motivation resulting from lack of fringe benefits, underpayments, lack of advancements and rewards etc can result to teachers leaving the profession. If the ministry of education fails to pay attention to the teachers self esteem and dignity, they feel cheated, insecure and sometimes feel that they are underpaid. If such situations arise it w ill lead to casual disregard attitude towards work, frustrations, finally rebellion which will eventually result to strikes.Factors that motivate teachers do not depend only on administration and education policies but also on economic factors, social and cultural factors. â€Å"Equity and fairness† in all the work places determine motivation to employees and job satisfaction.In any department it is required that professionals utilize their mental and energy, take part in the production process of goods and services, interaction of professionals with peers and also define the professionals social status.Motivation to increase productivity of professionals in teaching can be increased through environmental and situational approaches. The administrative practices which were used traditionally may not be of any use. Professional teaching practices and the styles of teaching varies in accordance to the social needs and education of the staff. It is therefore necessary for the adm inistrators to change the styles of management in accordance to the requirements of teachers and also the students in order for the success of the education system.Reference:Adams Equity Theory; Balancing Employee Inputs and outputs, retrieved on 14th September 2008 from http://www.mindtools.com/pages/article/newLDR_96.htmEmployee motivation, the organizational environment and productivity, retrieved on 14th September 2008 from http://accel-team.com/motivation/.Weightman T (2007): Making Motivation Work: 30 Practical Exercises; Get to the heart of motivation quickly and effectively; retrieved on 14th September 2008 from http://www.multimediahrd.com/item-Making-Motivation-Work-30-Practical-Exercises.html.YesPakistan.com Staff Writer (2004): Why Pakistans primary school teachers lack motivation retrieved on 14th September 2008 from http://www.yespakistan.com/education/teacher_motivation.asp.

Traditional Vs. Roth IRA Your Ultimate IRA Guide

Traditional Vs. Roth IRA Your Ultimate IRA Guide SAT / ACT Prep Online Guides and Tips IRAs, or independent retirement accounts, are tax-advantaged savings accounts that help you save money for retirement. There are two main types, traditional IRAs and Roth IRAs, and they work in slightly different ways. This guide will tell you everything you need to know about traditional and Roth IRAs and help you decide which type of account is better for you. Before delving into the differences, let’s go over what you need to know about independent retirement accounts in general. What Is an IRA? An IRA is a type of savings account designed to help you save for retirement. IRAs offer a major tax advantage wherein your money is only ever taxed once. In a brokerage account, your money can be taxed twice. An IRA is made up of financial products like stocks, bonds, and mutual funds. The money you contribute will slowly grow over time as a result of annual compound interest. Typically, savings in IRAs grow at a rate of 5% to 7% each year. While this growth won’t look like much at first, it can add up significantly over the decades. If you start saving in your twenties rather than your thirties, you’ll see a huge difference in returns. When it comes to saving for retirement, you’re much better off the earlier you start. While you can start contributing to an IRA at any time, you must abide by an IRA contribution limit. Read on to find out how much money you can put each year into your IRA. By putting your money in a protected environment, it can grow significantly bigger over time. How Much Can You Contribute to an IRA? Whether you have a traditional IRA or Roth IRA, you can only contribute up to $5,500 per year. This was the IRA contribution limit for 2015 and 2016. It could change in years to come due to inflation. If you’re over 50 years old, then you can contribute $1,000 more for a yearly total of $6,500. This extra $1,000 added to the IRA contribution limits is considered a â€Å"catch up† contribution to help out those who didn’t max out their limits in earlier years. Most people contribute to their IRAs via automatic monthly payments. You can put in as much or as little as you like, but you’ll see the greatest long-term benefit by contributing up to the $5,500 limit. Now that you have a general sense of IRAs and how they help you save for retirement, let’s look closer at the differences between a traditional vs. a Roth IRA. People 50 and over can contribute an additional $1,000 per year to catch up as they round the bases toward retirement. Roth vs. Traditional IRA: How Are They Different? The major difference between a traditional IRA and a Roth IRA has to do with how your money is taxed. By learning about the different tax structure, you can figure out which one is more advantageous to you, depending on your age and financial profile. The second difference when you look at Roth vs. traditional IRA has to do with when you can withdraw money. Consider the tax and withdrawal rules for traditional IRAs, followed by the tax and withdrawal Roth IRA rules. Tax Advantages of a Traditional IRA Traditional IRAs allow your money to grow completely un-taxed until you take it out. You contribute pre-taxed money, which grows in your account until you withdraw. While your money is tax deductible when you contribute to a traditional IRA account, it’s taxed normally when you withdraw. You’ll pay all the taxes that you didn’t pay before, but you may find that you’re saving money on taxes overall. Why? You may be in a lower tax bracket when you retire than you were when you were working and contributing money to your IRA. Traditional IRA Withdrawal Rules When you contribute money to a traditional IRA, you can’t touch it until you’re 59  ½ without penalty. If you withdraw money before, then you’ll have to pay a hefty 10% penalty. It’s recommended that you take out about 4% of your savings per year during retirement. Some accounts also have required minimum withdrawals (RMDs) that compel you to take out a certain amount of money once you hit 70  ½. Even if you’re still working at age 70  ½, you’ll be required to start withdrawing money from your IRA. the amount of the RMD varies by individual and is calculated based on your account balance and age. When you contribute to a traditional IRA, your money is basically kept under lock and key until you’re 59  ½. Tax Advantages of a Roth IRA While traditional IRAs are taxed later, Roth IRAs are taxed now. In other words, you contribute money that’s already been taxed to a Roth IRA. You don’t get any tax breaks for your contributions, but you won’t have to pay any taxes when you withdraw. Basically, a Roth IRA works in the exact opposite way of a traditional IRA. You pay taxes when you contribute and not when you withdraw, whereas with a traditional IRA you pay taxes when you withdraw and not when you contribute. Roth IRA Withdrawal Rules Roth IRA rules are more flexible than those of traditional IRAs about when you can withdraw your money. You can take out money from a Roth IRA at any time without penalty as long as you’ve held the account for at least five years. Technically, you can only withdraw money you’ve contributed without penalty. You can’t touch any earnings on your contributions until you retire. Roth IRAs also don’t have any RMDs, so you’re not required to take out your money once you surpass a certain age. With a Roth IRA, you could withdraw all your funds after five years to buy that pleasure yacht you’ve had your eye on. But, you probably shouldn’t. Traditional IRA vs. Roth Ira- Which One Should You Choose? Given the difference between Roth IRA rules and traditional IRA rules, which account would be more beneficial to you? The answer to that question largely depends on your age and current tax bracket. Younger people typically benefit more from a Roth IRA. They have plenty of time for their money to grow until retirement, and they’re usually in a lower tax bracket than they will be in 10 or 20 years. If you’re in your twenties and your tax bracket is 20% or lower, then you’ll probably benefit from a Roth IRA. People who are older and/or in a high tax bracket will probably do better with a traditional IRA. They can contribute more money, since it’s not taxed, and pay taxes when they’re in a lower tax bracket after retirement. To see how tax brackets affect your savings in an IRA account, consider the chart below. If your tax rate is lower in retirement Traditional Roth Current tax rate 25% Tax rate in retirement 15% Annual investment $5,500 $5,500 After-tax value in retirement* $613,313 $598,444 *Based on moderate growth (around 8% annual return) over 30 years If your tax rate is higher in retirement Traditional Roth Current tax rate 25% Tax rate in retirement 33% Annual investment $5,500 $5,500 After-tax value in retirement* $505,593 $598,444 *Based on moderate growth (around 8% annual return) over 30 years If your tax rate goes down in retirement, then you’ll have more money from a traditional IRA. If your tax rate goes up, then you’ll end up with more savings from a Roth IRA. A secondary factor to consider when deciding between a traditional and Roth IRA is your financial self-control. As you read above, the two types of IRAs have different withdrawal rules. Will you be able to resist withdrawing money from a Roth IRA before retirement? Since there’s no penalty for withdrawing after five years, you’ll need to set limits on your spending so you don’t end up splurging on a luxury vacation to Fiji with your hard-earned money that was supposed to go toward retirement. If you don’t have clear cut answers to either of these considerations, then you might consider opening both types of IRAs. Choosing between a traditional IRA and Roth IRA requires that you consider the balance between your tax bracket and years until retirement. Can You Choose Both Types of IRAs? If you’re unsure which account is more advantageous to you, then you could consider setting up both a traditional and a Roth IRA. If you start to see real advantages to one over the other, then you could roll your money over to one account. Before opening both types, you should carefully consider the implications of taxes. If you opt for the Roth IRA, then you’ll have to pay taxes on any money that you roll over from a traditional IRA. This money would have otherwise grown untaxed until you withdrew it at age 59  ½. You should also note that opening both types of accounts won’t increase your yearly contribution limit. If you choose both types of IRAs, then the $5,500 limit applies to both. You can only contribute $5,500 collectively to your retirement savings accounts per year. Choosing both types of accounts is unnecessarily complicated for the majority of people. You should only do so if you’ve done some serious calculations and feel that it would be financially beneficial to you in the long term. For most of us, choosing one type of account based on our age and current tax bracket is the better way to go. Once you’ve chosen your type of IRA, how do you get about setting up an account? If you're having trouble deciding between types of IRAs, you could hedge your bets and open both. How to Set Up an IRA There are a number of IRA providers with whom you can set up an account. Most require a minimum investment up front, but some are a lot lower than others. When you set up an account, you can either set it on auto-pilot or take a hands-on approach to choosing your investments and designing your portfolio. Below are six recommendations for the best IRA providers, but first, let’s go over the factors you should consider when choosing an IRA provider. What to Look for When Choosing an IRA Provider The best IRA providers offer some or all of the following: Low account fees Low account minimums Good customer service and educational resources for new investors Low fees for trading stocks (this mostly applies to people looking to take an active approach to building their portfolio) If you fall in the majority of people who want someone else to manage their account, then you should look for a managed account or a target-date fund. In these types of account, you’ll pretty much only have to set your estimated date of retirement. A broker will do the rest. Now that you know what to look for in an IRA account and provider, check out the suggestions for the top six IRA providers. When choosing an IRA account, you should look for low account fees and low account minimums. Best IRA Providers for 2016 Based on the factors listed above, these six providers rose to the top for their low account fees, strong customer service, and other offerings. TD Ameritrade - popular provider with strong resources and support for new investor. TD Ameritrade doesn’t require any minimum balance, and it has a large selection of funds to choose from. One downside is that its trade commission fees are higher than usual at $9.99. TD Ameritrade, then, is a better choice for the new or hands-off investor, but not as popular among active traders. Vanguard - another popular low-cost provider with a $0 minimum balance. Vanguard is especially strong when it comes to target-date funds, where you set your date of retirement and don’t have to do much else. E*Trade - a provider with a large selection of funds and no account minimums. E*Trade stands out for its user-friendly website. Wealthfront - this provider manages accounts of up to $10,000 for no fee. Wealthfront, then, is good for the average investor who wants to take a hands-off approach. Betterment - like Wealthfront, Benefit is appealing to the hands-off investor. It tends to cater to people with large balances of $100k or more. Options House - best for active traders. Options House has a lower than average per trade fee of just $4.95. Once you’ve decided between a traditional and Roth IRA and chosen your provider, how do you open your account? When it comes to choosing an IRA provider, you've got options. Delicious, delicious options. How to Open an IRA Account Opening an IRA account is an easy, online sign-up process. Just head to the website of your chosen provider and fill out the IRA application. You’ll enter personal information, including your social security number and employment information. Most providers offer a different kinds of accounts, so you'll choose the one you want to open. Here's an example from TD Ameritrade's "Open New Account" page. Source: TD Ameritrade You’ll also indicate how you’ll fund the account, e.g., through automatic monthly transfer from your bank account. You can also transfer money from an existing IRA or 401k (an employer-sponsored retirement account). Depending on your funding choice, you may need your account and routing number or the account number of a separate account. The best way to make the most of your IRA is to deposit money on a monthly basis, to max out your annual contribution limit, and to start as early as you can. If you start saving in your twenties, then you could have a savings account with hundreds of thousands of dollars by the time you retire. In closing, let’s go over the key points you need to remember about IRAs. Opening your IRA account is the first step toward a secure retirement! Saving for Retirement in an IRA: Key Takeaways When it comes to saving for retirement, it’s never too early to start. Because your money grows in an IRA, you’ll see significantly more earnings the longer your money is invested in the account. IRA accounts are especially beneficial because of their tax advantages. Your money will only ever be taxed once, either when you withdraw it, as in a traditional IRA, or when you contribute it, as in a Roth IRA. Both accounts have advantages, and the one you choose should largely depend on your age and current tax bracket. While you should figure out which account will maximize your savings, in truth, you can’t go wrong with either. Both are tax-advantaged accounts that will help you save up money that you’ll rely on later in life. By opening and contributing to an IRA, you invest in your future and let your money work for you. What's Next? What is ROA, and how can looking at it provide you with helpful investment information? We discuss the meaning of ROA (return on assets) and how you can use it in this article. Not ready to open up an IRA but still looking for ways to save? Try the 365-day penny challenge!

Comparative Analysis of Christianity and Islam Essay

Comparative Analysis of Christianity and Islam - Essay Example The essay "Comparative Analysis of Christianity and Islam" aims to develop a comparative analysis of the Christian and Muslim belief system or philosophies as pertains to the concept of spiritualism, and how the philosophies manifest themselves. The key questions suggested by James Sire in understanding the concept of worldview. A focus on the aspect of prime reality is important to start with. God is the prime reality for Christians while for the Muslims, it is Allah. God and Allah are perceived as the supernatural being that determines all conditions or situations that humans experience. Muslims have their prayer, referred to as Du’a, which seeks to ask Allah to heal the sick people. The prayer of Du’a can be traced from the Quran 21:83-84; the prayer of Prophet Ayyub. The verses state: â€Å"Truly distress has seized me, but You are Most Merciful of those that are merciful†. It is inscribed that the early Muslims would seek the advice of Prophet Muhammad whene ver they were sick. The prophet would thus recite one of these Du’as for them while touching the area of pain: â€Å"Oh Allah! The Sustainer of Mankind! Remove the illness, cure the disease. You are the One Who cures. There is no cure except Your cure. Grant us a cure that leaves no illness†. Christians also pray to their God to heal the sick. During the days of Jesus, he healed many people with prayer. Psalms 41:3 has the recognition of God as a healer. The verse notes: â€Å"The LORD sustains them on their sickbed and restores them from their bed of illness†.