Archive for retirement
The FV function calculates Read More→
If I said it once, I said it a million times. If success is your goal you have to begin with a financial plan. These are the 6 steps that people who have successfully retired proactively took to guarantee the financial success of their retirement plan.
Step #1: Diversification Strategy Read More→
We’ve all read about the recent surveys that tell us retirees are far more concerned with protecting their income than they are with maximizing their income by taking on the risk of higher earnings or yields on their savings and investments. That’s why fixed annuities are being purchased by more and more retirees, despite advisor efforts to the contrary.
Fixed annuities are an obvious, common sense solution to their fear of losing Read More→
Traditional IRAs are funded with your income dollars before Read More→
401(k)’s were billed by the government and corporations as one of the most powerful tools you have to save for retirement. 401(k)’s are offered through employers and can be contributory or noncontributory.In addition to saving for retirement they were billed as one of the best tax shelters that our federal government has ever managed to create.
Well let’s see. The government gets to tax money years down the road when the pot is much bigger, therefore tax revenues are much greater, and corporations get to pass the risk to the employee. No wonder they are both staunch supporters Read More→
As I mentioned in an earlier post, a Simplified Employee Pension Plan, is a retirement plan specifically designed for small-business owners and self-employed individuals. These plans work even if you are the only employee, as the rules are the same.
Key features include: Read More→
Simplified Employee Pension Plans (SEP), are retirement plans designed for small-business owners and slef-employed individuals. Employers can make tax-deductible contributions on behalf of their employees because the plan is based on an IRA. That means, if you are eligible, you will not pay taxes on the contribution but you will pay them on the distribution you receive from the SEP account. Read More→
No, I am not talking about what you spent the last year teaching your pet to do. The rollover that I am talking about is a procedure that the IRS designed that allows you to distribute or “roll over” assets from one retirement plan into another. Why would you do this? Say for example you changed jobs or retired, you could transfer assets from one retirement plan to another i.e., from an employer sponsored 401(k) plan into an IRA–protecting your tax-free status and avoiding any early withdrawal penalties.
Self Directed IRA’s
The advantages of rolling over your managed IRA plans into a self-directed plan are many. Self-directed IRA’s offer you a range of investment choices i.e., mutual funds, stocks, bonds,real estate, and CD’s that Read More→
If you are trying to figure out what retirement plans are available through your employer, keep in mind that Employer retirement plans and the tax laws that back them are very complex. Do not hesitate to seek outside help if you need help determining the best plan for you.
Most plans fall into one of two categories: defined benefit or defined contribution.
There are two key features of a defined benefit plan. One, the employer commits to the benefit, and two, the employer takes on the responsibility of managing the plan. Now, the benefit is based on what’s in the plan when you retire. So, company may define a plan that requires it to deposit a Read More→