There are a number of good reasons that you might be eying your IRA as it sits there with years to go before you turn age 59-1/2. You could see it as potential, as rescue capital, or if you’re in a really good place you could see it as the start of an early retirement. Of course, there are a few good reasons for leaving it alone – heavy tax hits and penalties – and for that Forbes has recently offered some uncommon advice for withdrawing from your IRA early and penalty free. The general wisdom is to leave your…
According to some barometers, there has been a recent surge in charitable giving over these, the first few months of 2011. Apparently, a good number of people have figured out that now is a good time to give. As a recent article on InvestmentNews.com reports, “The Vanguard Charitable Endowment Program, the nation's second-largest, collected about $129 million during the first quarter, a 60% in- crease over the same period a year earlier. Donations out of the $4.8 billion fund totaled $87 million, a 31.2% increase from $66 million.” Why the sudden increase? The new tax deal reached in December makes…
If you’re a small business owner, youll be pleased to know that the Senate recently repealed the onerous 1099 filing provision created by the healthcare overhaul. As Gaebler reports and Robb Mandelbaum of The New York Times discusses, the Senate has passed a measure to repeal the expanded 1099 report provisions and President Obama has expressed that he would welcome the repeal. The burden of such expanded provisions is something that many small businesses have dreaded, requiring companies to file a 1099 form for each vendor with whom they spend more than $600 in goods or services over the tax…
This phase lasts from the day you retire until you are 70 years old. For those who do not plan to retire until well into their 70s, the first two tasks of this phase may occur later. A key purpose of this phase is to create a clear communication channel with your family so information can be shared, questions asked and answered, and decisions made in a calm, supportive way. If inter-generational communication around money has not been part of your family culture, it may be useful to enlist the help of a third party to get the process going….
The first stage of the retirment planning is the period when you first enter the workforce and begin setting aside funds for later in your life and ends when you actually retire. A consideration in choosing an employer should be the amount they will contribute to your retirement savings and if they have a pension plan. Sign up for the 401(k), 403(b), or 457(b) plan if offered and contribute the maximum allowed as soon as you start working. In 2007, less than 32 percent of workers under age 35 participated in plans when they were offered at work, according to…
If you are a small business owner, you may be seeing a slight uptick in your business – and your confidence. In fact, many small business owners are starting to think about hiring a few more people, and perhaps even offering a few employee benefits again … such as a retirement savings plan. Stuart Robertson of Forbes recently wrote a brief, concise overview of the top three retirement plans available for small businesses (those with 25 or fewer employees). Before you start researching options, Forbes suggests you ask yourself these five questions: Can I afford a match for my employees?…
For years there has been something of a vacuum working on American markets in the form of an outflow of highly educated immigrant workers returning home to such countries as India and China, because they could not get visas to stay here. As a result, entrepreneurship is booming in those countries, instead of in the U.S. As Bloomberg Businessweek reports though, there is work underway to stem the tide and keep some of this top talent here. The legislation is being put forward by Senators John Kerry (D-Mass.) and Richard Lugar (R-Ind) in the form of an updated version of…
Purchase a whole life insurance, with a rider to the policy which pays for long-term care ( home care or care in an assisted living or nursing home). If you do not utilize the long term care benefit, your beneficiary will receive the policy’s face amount. Example. You apply for a $500,000 whole-life insurance policy, with a rider for long-term care that will pay you 2% of the face amount each month if you need long-term care services. Therefore, you will receive up to $10,000 monthly ($500,000 x 2%) to pay for home-care, assisted living, or nursing home services. Consequently, if…
In a continuation of their previous article about test-driving your retirement plans, SmartMoney recently offered a reminder about the prospect of a transitional retirement – which may be the best way for some to leave the workforce. Retirement doesn’t have to be a climactic stopping point, where yesterday you were working full speed ahead and today you’re at full stop. From a financial planning standpoint, it’s difficult to transition from a full working income to a retirement income – especially if your retirement accounts took a recessionary hit. From an emotional standpoint, the abrupt lifestyle adjustment may be difficult to…
When a veteran files an application for NSC pension, the veteran must be eligible as of the date of entitlement i.e. informal or primary application. Income is then projected outwards from the effective date (first day of the next month). For instance, if the VA received an application on February 20th, the date of entitlement is the 20th, but the effective date (retro-active payment date) would be March 1st, so all income from March 1st would be countable, but none before. However, a potential issues arises problem. Because, every claim is audited every two to four years. Therefore, the VA cross…
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