IRA Rollover- Understanding Your Options

December 10th, 2009 by David No comments »

The IRA rollover is a mysterious thing to many people. Understanding the retirement investment options that you have is critical, and when it comes to IRA accounts, you really need to make sure that you are aware of all of the details of the investment that you are making. When someone created the IRA account and decided that people needed to save for their future, there were many benefits that drew people to the accounts like moths to a flame. However, financial advisors and others haven’t always done their best to explain all of the little details, including rollover options and regulations.

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IRA Withdrawal- Timing, Penalties and More

December 5th, 2009 by David No comments »

Understanding IRA withdrawal rules is critical to your success in investing. If you don’t follow the rules and take out money when you are supposed to, you will be facing huge losses of your investment in the way of penalties in fines. Before we begin discussing the rules and guidelines, you should know that if you have a Roth IRA, these rules do NOT apply. Talk to your financial advisor about Roth IRA distribution specifically, because it is not subject to the same withdrawal regulations as other IRA accounts will be.

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Roth IRA Conversion- What You Should Know

December 1st, 2009 by David 2 comments »

When it comes to investments, you should always be well versed on the rules and guidelines that come with any investment that you make. It is going to be critical to your success and your ability to maximize your profits to know what you can and can’t do, as well as what you should and shouldn’t do. When you’re working with a Roth IRA, one of the hottest topics is Roth IRA conversion. The rules have always been the same, but they are undergoing a big change in 2010 to allow more people to contribute, convert, and enjoy their retirement savings.

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Roth IRA Rules- What You Should Know

November 27th, 2009 by David No comments »

Roth IRA rules are a lot more flexible than other investments. You really need to make sure that you understand the right rules for the right investments, because getting them confused is easy. Roth IRA contributions are not tax-deductible, which is one of the biggest differences between these accounts and other IRAs. Tax free withdrawals are offered on these accounts, but only if you follow the rules first and get to a point where you are eligible for them. You need to understand contribution limits ($5,000 and $6,000 for those under and over age 50 respectively in 2010), income limits, and other elements that will determine what you can invest, when you can withdrawal, and other details of your investment.
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A Roth IRA Is a Gift That Keeps On Giving

November 3rd, 2009 by David No comments »

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 by David 1 comment » 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.

2010 Will Bring Big Changes to Roth IRA Rules

October 27th, 2009 by David No comments »

The New Jersey’s Star-Ledger has publish an article regarding the future changes to Roth IRA rules, here’s a quote from it:

“Starting in 2010, the rules governing the conversion of a traditional IRA into a Roth IRA will allow anyone — regardless of income — to switch their existing retirement savings account.

The change in 2010 “has the potential to be a fairly big deal,” said Rande Spiegelman, vice president of financial planning at the Charles Schwab Center for Financial Research.

Depending on your financial circumstances, converting your traditional IRA to a Roth IRA might be a smart move, but consumers should do their homework first.”

You can read the rest of this story here.

No Tax Benefit For Stock Loss

October 27th, 2009 by David No comments »

The news tribune has an interesting article in Q&A format, here’s an excerpt from it:

Q: I am very new to the game of investing. What low-priced stocks do you recommend? I’ve been lucky with a few penny stocks and want to add a little at a time. – D.M., Ontario

A: First off, stop thinking of investing as a game. Sure, it can be exciting and a lot of fun, but it’s also serious business. It’s your hard-earned money, and your retirement, that you’re “playing” with. ”

Click here to continue reading the original article.

Traditional vs. Roth IRA – Benefits and Drawbacks

October 4th, 2009 by David 2 comments »

Two of the most popular individual retirement account options are the traditional IRA and the Roth IRA.  The basis of both of these plans is to provide a secure, comfortable retirement for those eligible to open and contribute to an account.  Specific details about rules and restrictions are what set these two drastically apart from one another.  Depending on your income, tax filing status and exact plans for the future, you may find one is significantly more beneficial for you over the other.

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Traditional IRA – Limits and Restrictions

September 24th, 2009 by David No comments »

Many people are now recognizing the importance of planning for retirement early in life.  Whether you are young and hoping to create a secure future or you are nearing retirement age and want to give your funds a boost, opening a traditional IRA may be the right choice for you.  What you need to understand are the benefits of this kind of retirement account and whether or not your contributions to it will be tax deductible.  Like any other retirement plan, there are rules and restrictions you must be aware of before you make the decision to open one kind of account or another.

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