Archive for the ‘External Articles’ category

A Roth IRA Is a Gift That Keeps On Giving

November 3rd, 2009

With a Roth IRA, you are not obligated to receive the required minimum distributions (RMD) and because of that, you could pass your Roth IRA savings to your children or even your grandchildren!

Kelley Greene posted a great article that will help you understand how this could be done.

Here’s an excerpt from her article:

“If the surviving spouse then names his or her children as equal beneficiaries of the same Roth IRA, they can indeed split it in half, and it is to their advantage to do so. Any heir other than a spouse who treats the account as his or her own had to take required distributions from a Roth IRA, starting by Dec. 31 of the year after the year of the previous owner’s death. If the children keep the account intact, and they want to stretch withdrawals across their life expectancies, they are limited to using the older child’s age. But by splitting the account, each sibling can stretch those distributions across his or her own life expectancy, Mr. Jones says. That means the younger sibling can spread those withdrawals across more years, leaving more assets in the account for a longer time and possibly reaping more tax-free earnings.”

Continue reading…

Important Years For Retirement Planning

October 29th, 2009

Time.com has published a series of 30 articles about retirement planning, I’m including an excerpt from an article that has an emphasis on those who are in their 30s…

“For one thing, you’re getting older. You’re not old by a long shot but the door is starting to close on the certainty of long-term investment gains. “The most powerful force in the universe is compound interest,” Albert Einstein famously declared. But the magic only happens through consistent saving over many, many years. Delay is costly. Consider: Had you started saving $5,000 a year in a Roth IRA at age 20 you would today be on track to accumulate $1.9 million by age 65 (assuming 8% annual returns). But now, at age 30, you need to save more than twice that amount each year ($11,200) to get the same result and if you are 40 you need to sock away $26,400 a year. The earlier you begin the less you need to save. In the example above, lifetime contributions that began at the age of 20 totaled just $225,000; at the age of 30, $392,000; and at 40, a staggering $660,000.”

Read the rest of this article and the others here.