November 2020 - Official Blog-Phoenix Pop

Can You Lose Money in an IRA Account?

November 25, 2020

Despite Roth IRAs usually provide amazing returns to those who use them for a long time, cautious investors still wonder “Can you lose money in an IRA account?”

Truth is, you can. The most common reasons for money loss include early withdrawal penalties, an insufficient amount of time to compound and negative market fluctuations. However, the longer you allow a Roth IRA to grow, the less likely it is that you lose money.

Does a Roth IRA earn interest? Well, due to the tax advantages, Roth IRAs are among the best investment options for retirement. Nevertheless, it is essential you understand the role of Roth IRAs and the associated risks.

How Can You Avoid Losing Money?

The only situation where investments don’t come with risks is in a CD or as the guaranteed interest rates in your savings account. However, .01% interest won’t build wealth. To do so, you must get involved in some higher return investments, which will require taking some smart and calculated risks that are likely to benefit you in the long run.

Nevertheless, even a Roth IRA can lose money if you don’t know what you’re doing, so keep reading to find out about three things that can hurt your Roth IRA earnings and how to avoid them. You will never want to fundraise to gather funds for starting a Roth IRA either.

1.Market Fluctuations

Is a Roth IRA affected by the stock market? As with every investment, withdrawing your money when the stock market is down will make you lose money. The solution is to be patient and disciplined, as you need to give it time to ride out the market and to have other funds sitting in retirement. Also, if you plan to use the money before reaching the required retirement age, a Roth IRA isn’t the best investment for you and you should consider another one.

2.Early Withdrawal Penalties

Can you lose money in a Roth IRA if you withdraw money before your retirement age? Yes, and this is the worst thing you can do, as you’ll have to pay for a 10% penalty fee in most cases. You would not want to pull money out just to buy a vacation home in Arizona. However, there are some exceptions to this penalty. For example, if you lose your job and you have to use the money in your Roth IRA to pay for your health insurance premium, a hardship withdrawal will allow you to withdraw it penalty-free. A hardship would not include going on winter vacation, be realistic.

3. Insufficient Time to Compound

The best thing you can do is to begin investing early, continue to invest consistently, and let your money sit and grow for decades. Can you lose money with an IRA? You should consider there will be good and bad years. You might lose a little money one year and might make a 20% return the next. However, given enough time, your investments earnings will grow impressively.

Can You Lose All Your Money in a Roth IRA?

Basically, you can. However, it’s a very unlikely option that would happen if you invested all your money in your Roth IRA in a single company, and then it went out of business, for instance. This is why you should diversify your Roth IRA account as much as possible by choosing investments such as low-cost index funds or mutual funds.

Are Roth IRAs Safe?

As the money you invest in it will grow 100% tax-free, it helps you maximize the return by eradicating the risk of paying for higher taxes in the future, so Roth IRAs are considered the best and safest retirement investment.

Furthermore, Roth IRAs allow you to invest in a variety of funds such as index funds, ETFs, and mutual funds to lower your risk.

Disadvantages of a Roth IRA

Despite Roth IRAs are among the best ways of retirement investing, there are situations where it might not work well for you. Here are three situations in which other types of retirement investments would be more convenient than a Roth IRA.

Future Tax Increases

Can you lose money in an IRA account due to future tax increments? Over time, you’re betting on taxes increasing by investing in a Roth IRA instead of a traditional IRA, or 401(K) retirement account. Despite this doesn’t make a Roth IRA a bad investment, it means that the up-front tax percentage you paid on the money you put into your Roth IRA was higher than the rate at which you would’ve had to pull the money out.

However, people don’t usually complain about taking tax-free retirement distributions from their Roth IRA. Besides, if you invest in a Roth IRA consistently, there will be years with higher and lower taxes.

Can You Lose All Your Money in a Roth IRA?

Low Maximum Contributions

Among the main differences between a Roth IRA and other traditional retirement accounts is the low maximum contribution limit. By the time this article was written, the maximum yearly contribution to a Roth IRA is $6,000, or if you’re over the age of 50, $7,000.

Income Limits

Another relevant disadvantage of a Roth IRA is that you can only invest in one if your income is below a certain amount. For instance, by the time this article was written, to invest in a Roth IRA, your income must be below $124,000 per year. For married couples filing jointly, it must be below $206,000.

What is Most Likely to Cause Damage to a House?

November 24, 2020

Your home is one of the most expensive assets you will ever own. This is why most owners are concerned about how they can protect their homes from property damage. Are you wondering what is most likely to cause damage to a house? Then keep reading for the 6 main causes of damage to properties and how you can protect your house from damage.

1. Wind

If you are looking for what is most likely to cause damage to a house, then look no further than wind. Strong winds can break trees and cause them to fall on houses and damage their roofs, walls, and windows. Wind is also the culprit behind homes whose rooves have been blown off. If you have loose items like furniture, they can also become projectiles that can be flung against your home by wind during stormy weather.

To protect your home against wind damage, stay on top of your preventive maintenance by trimming branches and cutting down old trees. You must also make sure that your roof shingles are securely nailed down and that there aren’t any loose items in your yard that could become projectiles in windy weather.

2. Plumbing Water Damage

Another major cause of damaged properties is water damage, both weather-related, and non-weather related. Non-weather-related water damage comes from plumbing leakages and malfunctioning equipment. For instance, a damaged washing machine can cause a major water leak that could flood a whole house, damaging the flowing and walls. Plumbing leaks can also cause mold infestations and structural damage if they go undetected or unfixed over a long time.

3. Weather-Related Water Damage

Heavy rain and flooding is another main cause of property damage. Heavy rain can flood your property and cause damage as well as destroy the contents within. Additionally, water that seeps into a building's structure can cause it to weaken as well as lead to the growth of mold. You can prevent weather-related water damage by keeping your roof, doors, and windows well maintained. This will prevent rainwater from seeping into your home. Additionally, encourage water to flow away from your home by keeping your gutters and drains clear. You can also create a gradient slope that leads water away from your towards a water retention area away from your home’s foundation.

4. Hail

Another cause of property damage is hail or frozen rail pellets. Hailstorms can lead to a damaged house as they can break windows and damaged roof shingles. Hail can also damage other assets on your property such as vehicles and patio furniture. If you live in a hail-prone area, protect your property by building your home with hardy materials that won’t get broken by the ice pellets. You can also have a covered area to park your car and store your outdoor furniture.

5. Theft

The fifth main cause of property damage is theft. The FBI reports that every 20 seconds a burglary takes place somewhere in the US. Thieves often break windows or doors and steal valuable items worth thousands of dollars. You can deter thieves from breaking into your home by cutting down bushes and installing motion detector lights and alarms as well as CCTV.

6. Fire

Thanks to modern home safety laws, fire is no longer a major cause of property damage. But when it does occur it is the most devastating as it causes total property destruction and even loss of lives. To prevent fires, it is important to observe all building safety laws. Be on the lookout for faulty electrical connections and devices and eliminate any fire hazards as soon as you detect them.

7. Pests

Another cause of property damage are pests such as termites and rodents. Termites can eat up walls made of wood and mess up your landscaping. Rats and mice can also cause fire by eating electrical cables so keep your home rodent-free.

What Is Most Likely To Cause Damage To A House?

Some people mistakenly think that property damage cannot be prevented. While some accidents are unavoidable, we can avoid a lot of property damage through preventative maintenance of our homes. Taking out property insurance is also advisable as your repair costs are reduced in case of property damage. For more tips on how to maintain your home, read the rest of our blog.

Why Are Mosquitoes Attracted to Me?

November 20, 2020

In a group of people, not everyone may get bitten by mosquitoes. Unfortunately, you may have experienced being targeted by these tiny insects. This prompts you to ask, “why are mosquitoes attracted to me?”. Knowing why do mosquitoes bite and what attracts mosquitoes can be one way to stay protected.

Why Do Mosquitoes Bite Me?

Precision Pest informed us that the carbon dioxide that humans exhale attracts mosquitoes. The same goes for body heat, but mosquitoes can respond differently to different potential blood sources.

What blood type attracts mosquitoes the most? The blood type O is suggested to be more attractive. As well as drinking beer or being pregnant can contribute to why mosquitoes bite. However, this research centers on one type of mosquito species, so results may be different for other types.

The human skin has about 400 chemical compounds that may affect how mosquitoes respond to the body. This can be caused by sweat mixed with bacteria, and the smell can vary from one person to another.

Genetics may also play a role, while diet and physiology are almost insignificant factors. Regardless of what blood type attracts mosquitoes, lifestyle doesn’t also really make much of a difference. Even if you keep moving to any song that will get you to dance, you may still end up asking, “Why do mosquitoes bite me?”

What are Mosquitoes Attracted to?

Lactic acid found in sweat is heavily studied. It is the main reason why mosquitoes like the Aedes aegypti get attracted to the human skin. Your sweaty friend may have complained to you once, “why are mosquitoes attracted to me?”. If you or anyone you know loves exercising near wetlands, then consider this as a warning.

Anopheles Gambiae

Anopheles gambiae, the malaria-spreading mosquitoes, finds Limburger cheese attractive. This type of cheese gives off an aroma that may remind you of germs living between your toes. This is why this mosquito species find smelly feet attractive.

Aedes Aegypti

The Aedes aegypti species doesn’t show the same results even when exposed to the same type of cheese. There is a key difference between these mosquitoes’ behavior. Just like trying to understand why a fountain pen isn’t working, studying the habits of mosquitoes are difficult.

Prevention Can Be Tricky

We all react differently to mosquito bites. You may think, “why are mosquitoes attracted to me?” yet you may be surprised to find out that others have been bitten but don’t react as much as you do. We all have different reactions to the mosquito’s spit that gets in contact with our skin during a mosquito feeding.

As you complain, “why do mosquitoes bite me?”, some people who don’t react to being bitten may have actually been bitten. It is unlikely for someone in a group to avoid getting bitten.

If you’re the one who doesn’t react much to a mosquito bite, you may end up getting complacent. If you aren’t aware of what are mosquitoes attracted to, then one mosquito bite can already lead to a mosquito-borne disease without you knowing. There is no solid evidence from studies that suggests you can drink or eat something to avoid being bitten by mosquitoes.

Getting rid of mosquitoes can be as tough as getting rid of mice and rats in your house. Now that you know what attracts mosquitoes, it’s time to take action. Finding smells that mosquitoes hate will help repel them and avoid any bites. At the same time, choosing the right repellents will help you, your friends and your family stay protected.

What are All the Parts of a Car?

November 12, 2020

Your car is a complex machine and understanding what are all the parts of a car can be tricky. The secret to your car’s performance is the set of different parts of a car that complete it as a whole. To start understanding car anatomy, familiarize yourself with the different parts of a car. Picture a car diagram in your mind as you work your way across the list of car parts.

Engine

Learning about your car can be as exciting as getting your dream job. As the heart and soul of any vehicle, the internal combustion engine tops the list of car parts. The engine is built of different components such as valves, pistons, spark plugs, and shafts, among other things.

Battery

The battery is one of the basic car parts you should know. It brings life to your car and is made up of electrical components.

Radiator

The radiator keeps your engine cool by eliminating the heat from the coolant. The heat is pumped back to the engine afterward.

Alternator

The alternator is responsible for charging the battery and powering the electrical system. As a part of the electrical system, it is active when the vehicle is running.

Front Axle

The front axle is a part of the suspension system, and it is where the wheel hubs are mounted.

Brakes

Brakes are the basic car parts familiar to anyone, even for non-drivers. Cruises are a way to travel and so are cars, especially when your safety is ensured. Brakes are a part of the safety system and they are present on all wheels. Disc brakes use calipers and brake pads and are found on all wheels. Drum brakes with wheel cylinders and brake shoes can sometimes be found on some vehicles’ back wheels.

Front Steering and Suspension

The front steering and suspension are one of the main parts of a car. It is made up of multiple components such as ball joints and shocks. These components affect the vehicle’s handling and passenger comfort.

Transmission

The transmission is an essential part of car anatomy. It is responsible for changing gears and powering the vehicle by applying torque. It is made up of gears and gear trains.

Catalytic Converter

The catalytic converter reduces the negative impact of gases and pollutants before they get released from your car’s exhaust system.

Muffler

The muffler uses baffles and other materials to reduce the sound made by the exhaust system.

Rear Axle

The rear axle is where the rear wheels are mounted.

Tailpipe

The tailpipe releases the exhaust fumes that traveled along the muffler.

Windshield

Dealer Auto Glass says that the windshield is the most important part of your vehicle and that not only does it keep you from flying out of it, but it also protects you from the elements outside.

Fuel Tank

The fuel tank is one of the main parts of a car. Normally found before the rear axle, it is where the gasoline is stored.

Rear Suspension

The rear suspension acts in the same way as a front suspension. There are different systems used but they are typically made up of ball joints, shocks, and coil springs, among other components.

There you have it, you now know what are all the parts of a car and how they function. You can refer to a car diagram to have a clear picture of the different parts of a car. Just like knowing why marketing is important in dentistry, knowing what are all the parts of a car and how they work will bring a lot of benefits especially when you consult a mechanic for car issues in the future.