President Obama’s understanding of financial planning is fundamentally flawed. In his latest budget, the chief executive proposed a cap on tax-preferred retirement accounts. An individual’s total balance could not accumulate over $3 million. This total would include the sum balances of a traditional IRA, Roth IRA, 401(k) and defined contribution plans. No legislation should inhibit individuals from taking care of their own retirement.Read more ›
Post Tagged with: "retirement"
You can use the analogy of the pioneers on the Oregon Trail as a way to think about your retirement planning. These stalwart individuals mapped which landmarks would show they were making progress and what they needed to do to reach each of them. They set out in late April or early May from Independence, Missouri, with the daunting goal of crossing the mountains and reaching their new home before the first snows closed the pass.Read more ›
Knowing how much you should save for retirement is critical. But what if you are late getting started? The longer you delay, the shorter the time that compound interest can do its magic on your savings. Retirement planning is like the pioneers who set forth on the Oregon Trail. The hardy souls who began their journey in early spring had to average 15 miles a day to reach their goal. But those who delayed until summer needed to maintain a faster pace. The same is true of saving for retirement.Read more ›
I’m often asked, “How much should I save for retirement?” My standard answer, based on certain assumptions, is that you should save 15% of your take-home pay for retirement over your working career. As your situation varies, you must adjust your safe savings rate.<./p>Read more ›
We teach teenagers a lot more about sexuality than we do about money. This can confuse them about what they should be learning. Give this article to a teenager and encourage him or her to start a Roth IRA. For a $4,300 gift spread out over the next seven years plus a little work on the teenager’s part, you can fund a teenage child or grandchild’s million-dollar retirement. Here’s how it’s done.Read more ›
Nearly everyone is an excellent candidate for a Roth conversion this year. If you failed to convert money from an IRA to a Roth IRA last year, you missed an opportunity. Don’t make the same mistake this year. You can always undo part or all of a Roth conversion with what’s called a recharacterization, so you can’t convert too much.Read more ›
A tax tsunami is coming at the end of this year. The higher your adjusted gross income (AGI), the closer you live to the coast where the tsunami will hit. This will be your last opportunity to safeguard your assets in a lifeboat and avoid getting swamped with taxes. If you have an income over $100,000, this is the first year you can take money from your traditional IRA, pay tax as though that money is ordinary income and convert it to a Roth IRA. This procedure is called a “Roth conversion.”Read more ›