5 Social Security Myths That Seniors Are Falling For
Social Security is a sensitive topic for people of all ages, but especially for the 65 million Americans who today claim its benefits after paying taxes into the fund throughout their careers. There are a lot of myths around the Social Security program that need to be debunked. Here are some of the biggest that seniors should not fall for or…
Minimize the Impact of Required Minimum Distributions (RMD)
When we reach the age of 70 ½ we must — in order to avoid tax penalties — take Required Minimum Distributions (RMD s) from IRAs, 401ks and other types of tax advantaged accounts — all retirement accounts funded with pre-tax contributions.
So what exactly is a “Required Minimum Distribution?” Let’s break it down:
Best Investments For Retirement Planning
People invest for many reasons. As a hobby, for their ego’s sake or to meet a medium-term goal, such as paying for college.
All are reasonable choices, as far as that goes. Investing as a form of entertainment is no sin. Certainly CNBC would cease to exist, otherwise.
But most of us have a real, long-term goal. However you choose to express it, retirement, your golden years,…
An insider’s guide to bond opportunities
If you’ve been thinking that bonds are only a play on interest rates and you’ve been waiting and waiting for a spike in yields to reallocate for the long term, you’ve been waiting for nothing. While waiting for Treasury yields to go up, you’ve missed out on some good income opportunities in credit. Going forward, credit is where we think the opportunity in fixed…
Which comes first: Social Security or IRA withdrawals?
It is a retirement dilemma.
When planning for retirement cash flow, should a client start Social Security as early as age 62, letting individual retirement account money continue to grow, tax-deferred? Or should that client tap the IRA and wait for a larger Social Security benefit?
A client who would receive $1,500 a month at 62 would collect $2,640 a month, plus any cost-of-living…
IRS Denies IRC Section 1035 Tax Deferral in Annuity Exchange
Taxpayer’s receipt of outright cash from original insurance company barred non-recognition
A taxpayer inherited an interest in an annuity from his late father. The taxpayer wished to exchange his interest in the inherited annuity for an annuity sold by a different insurance company. With the intent of qualifying the transaction as a permissible tax-free exchange, he mistakenly requested a “Lump Sum…
Retirement Planning: A Checklist for Older Workers
Worried that you don’t have enough saved for retirement? You’re not alone.
A recent Gallup survey found that Americans list retirement savings as their top financial concern, with 64 percent saying they were “very worried” or “moderately worried” about having enough money to support themselves in their golden years.
Experts often advise young people to start their retirement savings early in their careers,…
Why planning for retirement has become important now
Retirement is a very important event of life that many of you experience. But all of you would like your retired life to be peaceful, wealthy, and of course no financial worry. Unfortunately, it is seen that many of the retired persons undergo the financial mess even during the retirement phase. However, to secure a comfortable retired life, it requires smart planning and years of persistence. Anyways,…