Retirement Articles

  Roth IRAs for Estate Planning

multigen-familyRoth IRAs have become a great estate planning tool. Previously, conversion from a regular IRA or 401(k) was simply prohibited for taxpayers with incomes in excess of $100,000. Under new legislation passed by Congress, everyone can convert a regular IRA to a Roth IRA.

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  Getting Real About Retirement

beachcoupleMost people think of retirement as something to deal with later. But what happens when you won’t be going to work every day? Although you may be saving money now, your spending habits are likely based on your paycheck.

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  Benefit Plans

Several key ceilings on retirement plans are higher in 2014. The maximum 401(k) contribution rises to $17,500 in 2014, up $500 over this year. Individuals born before 1963 can put in as much as $23,000. The contribution limits apply to 403(b) and 457 plans as well. The ceilings on SIMPLEs are $12,000. Folks age 50 or older in 2013 can put in an additional $5,500. Plan contributions can be based on up to $250,000 of salary next year. The paying limitation for defined contribution plans increased to $50,000 in 2014. That’s a $1,000 increase for Keogh plans, profit sharing plans and the like. Anyone making over $115,000 is highly paid for plan discrimination testing. And the benefit limit for pension plans has risen to $200,000. There are changes in the pay in limits for IRAs and Roth IRAs. The limits are $5,500, plus $1,000 more for age 50 or older.

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  A Big Idea

One way to insure that your retirement savings last as long as you do, is to consider an immediate annuity that will give you monthly payments for life.* This is a strategy for a portion of your retirement assets. Perhaps taking in a portion of your 401(K) and use an immediate annuity to provide your monthly income need for life. Invest the other portion of your 401(K) to provide growth and income to hedge inflation or provide for any lump sum needs (like a vacation or new car).

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  Time Your Social Security Benefits

clockfaceSocial security payments become available to some taxpayers at age 62. Tempted to take those benefits right away? Before jumping in with both feet, discuss the timing with your financial professional.

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  Small Savings Turn Into A Big Nest Egg

egg-nestIt’s never too early to start saving. And, its never too late either. Even relatively small savings can grow significantIy over time.

For example, $100 a month in savings at 10% accumulates to almost $76,000 in 20 years. Over 40 years, that same $100 balloons to $632,000.

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  Imagine the Possibilities of Retirement

imagine-butterflysIn order to best prepare for the financial component of retirement, financial planner Ann Wolfson of Ann Wolfson Associates asks her clients to “actively imagine the possibilities of retirement.”

Wolfson asks clients to view their working years as years where time was sacrificed for work as opposed to retirement years where she asks clients to see time as theirs entirely. “In retirement, time is yours. Late meetings, missed events, and short vacations are things of the past. Imagine yourself with all the time you did not have control over during your working years. That’s what we’re talking about. What do we want to optimize your finances and investments for? Your time.”

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