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Discover More(SM) Card - Clear

0% Intro APR*
More ways to earn more cash - than anyone else.SM*
5% Cashback Bonus® in categories like travel, home, gas, restaurants, movies and more
5% to 20% Cashback Bonus at top retailers through our exclusive online shopping site
Up to 1% Cashback Bonus on all other purchases automatically
Unlimited cash rewards
Increase, even double, your rewards when you redeem for gift cards from our 80 Cashback Bonus Partners
Complete fraud protection for your peace of mind
$0 fraud liability guarantee
Advanced fraud early warning alerts
Fraud specialists dedicated to helping you 24/7
Customer service that puts you first
One call and we take care of it
Talk to a knowledgeable person in less than a minute
Easy online account options that put you in control
Timely e-mail reminders to help you avoid fees
No annual fee
Formerly Discover Platinum Card
*View Discover® Card Rates, Fees, Rewards and Other Important Information.

More ways to enjoy more cash than anyone else.SM*
Enjoy a 0% Introductory APR* and get 5% Cashback Bonus® in popular categories like travel, home, gas, restaurants, movies and more and up to 1% Cashback Bonus on all other purchases.
For your peace of mind you'll have a $0 fraud liability guarantee. This card also offers the easy online Account options that put you in control and you'll pay no annual fee.
You also can Increase, even double, your rewards when you redeem for gift cards from our 80 Cashback Bonus Partners.
*View Discover® Card Rates, Fees, Rewards and Other Important Information.
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DID YOU KNOW?

	0 APR credit cards are here to stay. Now that we're well into the New Year we've learned (again) the lessons of the festive season. Zero interest credit is a nice idea, but why not extend it beyond your present credit card to the next, and the next. This seven point checklist will assure the clever consumer of having that constant low APR credit for years to come. 1. Read the small print. Make sure it matches the offers on the credit card's advertising copy. In particular, check for clauses that differentiate between purchases and cash transfers, or even cash withdrawals. Check that the card doesn't stipulate a ratio between purchases and cash, charging an excess if the cash activity rises above the purchase activity (that is usually the way it is biased, but check to make sure). 2. Keep to the agreed credit limit as specified in the agreement. Do not exceed the balance limit as specified on your original agreement, or that'll be the trigger for extra charges. 3. Pay at least the minimum charge in full. Even better, set up a standing order or direct debit with your bank. You can arrange to have the minimum paid directly and electronically from your bank account every month. 4. Avoid late fees by paying on time. There is a danger with people who have the benefit of a 0% APR credit card that they will tend to become complacent about it and forget to pay it. Yes, it does happen. But every time a payment is received late credit card providers can and will charge a late fee. This can add up, especially if someone is habitually late. Again, an automatic direct debit from your bank account is the best answer. 5. Factor in any extras in the agreement, as stated in the small print (which you will have read). For example, an annual charge may be applied to offset the 0 APR. Some 0% APR cards do this but others do not. Bear in mind that the whole APR concept was meant to level the playing field as far as extra charges were concerned. By paying an annual charge for your card you are not truly getting a 0 APR card. 6. Make sure you have in mind a new low interest or 0 APR credit card waiting by to which you can transfer the balance of your present credit card. Why have 0 APR credit for 6 months or 12 months when you can have it for years and years? Always check the press and financial columns for new deals and credit card offers with this in mind. Join an Internet forum that specialises in such matters. 7. Make sure that you transfer the balance of your existing credit card to your new credit card in full and on time. In particular, allow for time to process the balance transfer and for all the paperwork involved (yes, even in the age of the Internet there is still a certain amount of paper involved!) and be careful to check that the opening balance allowed on your new 0 APR credit card is at least the same or exceeds the balance that you wish to transfer from your existing credit card, or the shortfall will cost you money!

Q: I am trying to decide if opening and contributing to a Roth IRA would be a better option than contributing over and above what my company matches in my 401K.

A: Ideally, it’s best to max out both your 401K and Roth IRA accounts; the more you can save for retirement the better. However, for many people this is not possible, so the question then becomes which account should I invest in first?

Generally, it’s best to invest in your 401K plan first, up to the amount your employer will match, then to invest in a Roth IRA. If you have additional funds to invest after making the maximum contribution to your Roth IRA, you should max out your 401K, and then invest in taxable accounts. There are always exceptions, however, so here are some points to consider when deciding the best order to invest your retirement funds:

Matching Contribution – many employers will provide a matching contribution when you elect to participate in the company 401K or other employer sponsored retirement plan. This is free money, and should be taken advantage of even if your 401K plan isn’t the best due to poor investment choices, high expenses, etc. There is no matching contribution for a Roth IRA, so you should invest in your 401K up to the matching contribution first, before you invest in a Roth IRA.

Investment Choices – Most 401K plans have a limited number of investments to choose from. Roth IRAs can be opened just about anywhere: mutual fund companies, brokerage firms, banks, etc., which means your investment choices are unlimited. If your 401K plan has limited or poor investment selections to choose from, the Roth IRA may be the better choice (after you contribute enough to get the matching contribution in your 401K plan).

Taxes – although your 401K contributions are tax-deferred, which allows more of your money to go to work for you, money invested in a Roth IRA grows tax free. As long as you follow the rules, you may never pay taxes on the earnings in a Roth IRA. If you expect to be in a higher tax bracket when you retire, this could result in substantial tax savings.

Because withdrawals from a 401K account are taxed at your ordinary income tax rate, withdrawals could potentially push you into a higher tax bracket. If you have a combination of 401K and Roth IRA accounts, you have greater flexibility in choosing which account to withdraw from, which could allow for tax planning opportunities to help minimize your taxes during your retirement years.

One more note regarding taxes: 401K, traditional IRAs, and other employer sponsored retirement plans are subject to the Required Minimum Distribution rules; Roth IRAs are not. Again, having Roth IRAs in combination with your 401K accounts can provide tax planning opportunities not available to people who only have 401K accounts.

Withdrawals – your contributions to a Roth IRA are available to you penalty and tax-free at any time. Your earnings in a Roth IRA may also be withdrawn at any time. There is a 10% penalty, but this penalty may be waived under certain circumstances (disabled, first time homebuyer, qualified higher education expenses and more). Withdrawals from a 401K plan are much more restricted, as employers may or may not allow early withdrawals or loans.

Automatic investments – contributions to your 401K account are automatic since they come directly from your paycheck. This makes investing in your 401K easy and convenient, and after you’ve started contributing, most likely you’ll no longer miss the money being invested. Investing in a Roth IRA takes more effort. Although many Roth IRA custodians will allow you to setup an automatic investment plan from your checking or savings account, it takes more discipline to invest in a Roth IRA than it does to invest in a 401K plan. If you think you don’t have the discipline to invest in a Roth IRA account, then investing in a 401K plan (even a poor 401K plan) is better than not investing at all.

Conclusion: Everyone’s situation is different, and there is no one specific order for retirement investing that is perfect for everyone. However, investing in your 401K up to the matching percentage, and then opening a Roth IRA is a good strategy for most people, as a combination of 401K and Roth IRAs could provide you with the best of both worlds. Both types of accounts have many benefits which can allow for flexibility and planning opportunities when it comes to withdrawals and taxes, both before and after you retire.