Category Archives: IRA
Investors Must Keep Time on Their Side
MIAMI (TheStreet) — Time is such a valuable commodity that it’s a shame when investors squander it. Yet many investors do, wasting a resource that can’t ever be recovered.
Time is an investor’s most valuable ally because returns increase exponentially over time — as close to magic as most of us will ever see.
Investment returns increase exponentially over time, which is as close to magic as most of us will ever see.
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The Non-Deductible IRA Trap — and the Fix
HUNT VALLEY, Md. (TheStreet) — If you don’t have any nondeductible IRA assets, this article will not be of interest to you. If you have ever made nondeductible IRA contributions, get ready to be shocked!
Nondeductible IRA assets happen when you are ineligible for an IRA deduction but make an IRA deposit. There is no limitation to make a deductible IRA deposit if you and your spouse (if applicable) don’t have a pension plan at work. If you or your spouse has a pension, there are income limitations to deducting IRA deposits. In addition, every year after you make a nondeductible IRA contribution you must file a form 8606 to disclose your basis in an IRA. Here’s an example:
If you have ever made nondeductible IRA contributions, you should start thinking about the lowest-taxed way to get your money out.
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8 Travel Tips for Retirees
NEW YORK (MainStreet) — Many people dream of seeing the world once they retire, but sometimes limitations from poor health and a fixed income make finding a perfect trip difficult.
While these problems can sometimes prevent retirees from realizing all of their travel ambitions, there are plenty of safe and fun travel opportunities available to seniors.
While poor health or a fixed income can sometimes prevent retirees from realizing travel ambitions, there are plenty of safe and fun travel opportunities available.
“Older people are becoming more active and they want to do more things,” says John DiScala, who runs the travel site JohnnyJet.com. “As much it sounds like a cliche, age is just a number.”
NYC Workers Face ‘Retirement Crisis’
BOSTON (MainStreet) — The grim prospect for aging New Yorkers: One-third of them won’t have enough money to retire comfortably.
That’s according to a study released Thursday by New York City Comptroller John C. Liu and the Schwartz Center for Economic Policy Analysis at The New School in Greenwich Village.
One-third of New Yorkers won’t have enough money to retire comfortably, according to a study released Thursday.
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Watch What You Pay at the Pump: Safe Driving Tip for the Road to Retirement
The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage.
By Richard Schmitt
NEW YORK (TheStreet) — Penny pinching gets a bad rap. Sometimes you may feel that salesmen get offended by customers who ask questions about a product’s pricing. Sure they deserve to be paid a fair price. But then what is fair when it comes to the price you pay for gas, or for that matter of investing your retirement savings?
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Banks Grab at Bigger Retirement Share
BOSTON (TheStreet) — Despite widespread complaints — and considerable outrage — directed at the nation’s “big banks,” Americans increasingly turn to them for investment advice.
Research by Hearts & Wallets, a firm that analyzes retirement market trends for the financial services industry, shows that banks now serve as the primary source of retirement advice for 43% of Americans, an increase of two percentage points from a year ago, with gains across all investment product categories.
Despite anger at “big banks,” more pre-retirees are turning to them for their nest egg needs.
The findings come from a survey of more than 4,500 households nationally and statistics based on 9,000 responses on specific financial firms.
Starting, Maintaining a 401(k) Made Easy
NEW YORK (TheStreet) — Investing in a 401(k) plan can be stressful because there’s a lot to consider — stock or bond funds, time horizon, appetite for risk. But it doesn’t have to be.
The No. 1 thing to remember, as financial professionals remind us, is to diversify. That helps mitigate risk, which can erode investment returns.
Diversification in a 401(k) account has become increasingly important as those defined-contribution accounts will be the key source of retirement income for many. Nearly gone are the days that pension plans and Social Security could be relied on for income during the golden years.
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Roth or Regular? Don’t Waste the Advantage
MIAMI (TheStreet) — If you are qualified for either a Roth or Regular IRA, or your 401(k) plan offers a Roth and a regular, which should you choose? Unfortunately, no one can give you an absolute answer, but here are some of the considerations:
First, always remember that our government could change the tax laws at any time. Changing to a flat tax, for instance, would probably be a disaster for Roth economics. What Uncle gives, he can take at any time. But, still, it’s highly unlikely the government would change Roth tax-free distributions for existing plans.
No one can give you an absolute answer which is better, but there are some IRA details to consider.
Having said that, if tax advantage is a driving factor for you, here are some tax guidelines:
The Why of Retirement
HUNT VALLEY, Md. (TheStreet) — Before you retire ask yourself why.
First and foremost, if you’re unhappy, burned out, frustrated … figure out a plan to retire even if you don’t think you have the funds to retire fully in the lifestyle you desire. These negative emotions will leave you disabled or worse if left unchecked, so you likely need at least a sabbatical to regroup. (A sabbatical is like a mini-retirement to refresh, which will provide time to develop a plan to start anew.) A great book that will help you decide if a sabbatical is right for you, and more importantly how to do it, is Reboot Your Life: Energize Your Career and Life by Taking a Break (Beaufort Books, 2011).
Don’t just entertain yourself until you die. Thinking about true joy, fulfillment and a legacy.
