5dguQwaP9RoSMoJQzK1vOnPksZhCvVPR: December 2012

Saturday, December 8, 2012

What Is a Roth IRA and Should You Have One?

If you've decided you need to start preparing for retirement, you may have come across several unfamiliar terms. What is a Roth IRA? A Roth IRA is a tax-advantaged investing account similar to a 401k or a traditional IRA. You need to follow special Roth IRA withdrawal rules, but you will benefit from it in the end.

With a Roth IRA, you contribute money to a mutual fund. The contributions you have made have already been taxed as regular income. You can continue to contribute up to a certain amount to an IRA each year, more if you're married. When you reach 59 1/2 and retire, you can withdraw the money. The money you withdraw will be contributions you made in addition to earnings. You don't have to pay taxes on either one. That means all your earnings you get to keep tax free once you withdraw them.

A Roth IRA is a great addition to any retirement portfolio. If you can get a 401K with an employer match, you should max that out first. With a 401K, you do not have to pay taxes on the contributions now. Instead, you pay taxes when you withdraw it during retirement. This means more money get's to earn capital gains and dividends. If you get an employer match, your employer has agreed to add more money to your 401K as long as you contribute. This is free money you should take advantage of before you start contributing to an IRA or other accounts.

The more you invest now, the more you'll have during retirement. That means you can live a more comfortable and exciting retirement. Start saving and investing now and benefit from it later. You will be glad you did when you're able to enjoy your retirement in the years to come. Invest in a Roth IRA and look forward to the tax-free earnings later.

The Options Regarding A Rollover 401k Plan Introduction to Individual Retirement Account The Easy Way To Rollover 401K To IRA A Safe Winning Strategy Pairing Bullish and Bearish ETFs Simple 401(K) Asset Allocation Options Rules and Regulations For a Self-Directed IRA

Start Your Retirement Planning Now

Every working person, after a point of time at the work place, starts thinking about a life of peace and relaxation after their retirement. They plan and dream ahead to have some family time, to travel a bit, to go fishing or even do some of the things they have always wanted to do but never had the time. The people who know the value of these dreams will know the value of retirement planning.

Planning ahead for any event, as a matter of fact is better than meeting it on the way as sudden as it comes. And for an important event such as retirement, much of planning is needed. Financial planning is the most important thing you can do for yourself when you have the means to do so. It is one of those things you owe yourself. Apart from this reason, there are many other reasons why you might need to be ready with a little extra. For example, times of medical emergencies for you or your spouse. In such events as these the main thing that is wanted is money and if you have not saved for it, life may not be easy.

There are plenty of retirement plans out there that you can follow to effect. Retirement plans are offered by government agencies, insurance companies, by your own employers etc. by retirement planning, I mean an account in which you can deposit your savings meant for use exclusively for your post retirement life. These accounts are basically known as IRAs or Individual Retirement Accounts.

IRA is an account you can set up in a bank, an insurance company or any secure financial institution. The aim is to deposit a portion of your income in this account in a regular basis. The money in the account is of course not going to lie there waiting for you to retire. This money is going to be invested on various things such as real estate, stock certificates etc.

You can invest in a number of areas, this choice of course lies in your hands. Investment options are many and whether risky or not, it is ensured that you will get sufficient funds for your retired life. It is advised to invest your money in a safe area so that you don't lost most of your money, but a small profit is assured. When you take up big risky investments, there is always the threat of losing all you have put forth, but if it clicks a huge profit will be the result. The choice of investments, as mentioned above, is in your hands.

When you are looking for a reasonable IRA that you can set up, you should always research it properly. Only if you feel that this is the choice that is most comfortable and effective for you, should you go ahead with the plan. Any retirement plan also requires you to meet a set of conditions for you to access them. So, choose right and make a happy retirement for yourself.

Roth IRA: Education Expenses Can Be Paid From Roth IRA Penalty Free

Many parents struggle with how they are going to save for their kids' college expenses while saving for retirement at the same time. Roth IRAs are very flexible investment vehicles, making them a good choice for parents who are juggling saving for college and retirement.

As always there are some rules to follow when using your Roth IRA to pay for college expenses, so make sure you understand the rules before you take a withdrawal.

Roth contributions can be taken out at any time for any reason. This makes Roths not only a great vehicle to save for retirement, but also to save for college expenses. While I recommend that parents put their retirement goals ahead of college savings goals, it's nice to know that you can withdraw your contributions to be used for college expenses, without worrying about paying taxes or penalties.

If you need more money than you've contributed to your Roth account, you still have options. Normally, distributions taken from a Roth before you reach age 59 ½ are subject to taxes and a 10% penalty (on the earnings only). However, there is an exception for withdrawals that are taken to pay for college expenses.

The early withdrawal penalty is waived if you use the funds to pay for qualified higher education expenses for yourself, your spouse or your dependent children. Qualified higher education expenses include tuition, room and board, fees, books, supplies and equipment. Unfortunately, withdrawals taken to pay back student loans do not qualify (I wish!).

The ability to use your Roth account to pay for college expenses is a huge benefit. However, the withdrawals taken from the Roth could affect your eligibility for financial aid. The good news is that Roth IRAs are not counted as an asset for either the student or the parent in the financial aid formula. The bad news is that withdrawals from the Roth IRA are counted as income in the financial aid formula. So you'll need to weigh the pros and cons before dipping into your retirement accounts for education expenses.

In addition, if you take Roth withdrawals to pay for education expenses, it could disqualify you from other education tax incentives such as the Hope or Lifetime Learning credit.

Please note that while the early withdrawal penalty is waived for withdrawals that are used for education expenses, you will still need to pay taxes on any earnings withdrawn before you reach age 59 ½. This is true regardless of how long the account has been open.

Bottom line, Roths are very flexible investment vehicles, which makes them a great tool for saving for retirement and other financial goals such as education expenses. However, there are rules to follow, and just because you can take a Roth IRA withdrawal to pay for education expenses doesn't mean that's the best option for you. You should consult with a tax professional before taking any withdrawals to determine if that's the best strategy for you.

Simple Rules to Follow for a 401k

Today most employers offer a 401k to their employees. It is one of the easiest and most convenient ways to save for retirement. Most times you just fill in the amount or percentage you want to save in the 401k. Once your determine how much you want to invest, you then pick which mutual funds you want to have your money invested into.

Yes, that is simplistic answer, but saving for retirement does not have to be difficult.

The advantage of a 401k is that most offer an employer match. An employer match is the amount the employer will contribute to your 401k account as long as you do some percentage. An average 401k usually has a 3% match. So if you contribute 3% of your annual paycheck to the 401k, your employer will match that same 3%. It is like receiving a 3% pay raise from your employer. If you don't do anything, you don't receive anything. Now if you do at least 3%, your employer will match that same 3%.

There are some other matching percentages i.e. is that if you do 3% they will match 50% or 1.5% of that amount. The two phrases for a match is a dollar-for-dollar or a percentage match like 25% or 50% of what the employee contributes.

The employer match is one of the great benefits of a 401k. Another benefit is tax-deferred earnings on your investments. In a 401k you do not pay any taxes on the growth of your investments as long as the money stays in the 401k. Once you leave that employer you have several options. One is to rollover the money in the 401k into your own IRA or into another 401k such as one at your new employer. The second option you have is to take distribution or receive a check that you deposit into your bank account. Once you do that you have 60 days to deposit that money into another IRA. If you do not do deposit the money into another IRA the IRS will charge you a 10% penalty plus that amount will be fully taxable.

For example suppose you had $10,000 in your 401k and you decided to have them send you a check so you could pay off some bills. When you file your taxes the IRS treats that money as if you earned an additional $10,000 that year. So depending on your tax bracket that could cost you 30% to 40% or $3,000 to $4,000 of additional taxes. You think that is not very much because you at least eliminated that credit card bill. However, if you were only 35 years old at the time and did not plan to retire until age 65 that $10,000 could have increased in value to $147,300. So that little mistake cost you over $147,000 on one small investment of $10,000.

For many people this is basic knowledge, but many don't realize the same mistakes they make can compound into large mistakes down the road.

Hope you enjoy this information. Until later keep on saving for retirement.

Roth IRA Calculator Spotlights On Upfront Payment To Avoid Future Financial Burden

To set matters straight, IRA is an acronym for an individual retirement account as opposed to another possible meaning of a lesser positive note. Retirement is an inevitable progression upon formal exit from the employment space. Some may consider it another hurdle in the journey of life whereas others treat it as a carte blanche to finally living out life without deadlines and work stress. Whichever schools of thought one is enrolled in, the fact remains that retirement does not equate to bidding farewell to the present and embracing the afterlife. Expenses remain an ever and present element as nails in the coffin are not yet a topic for discussion.

Various types of retirement accounts exist for the everyday tax payer to consider and adopt into his plans. Obviously one needs to open an account to put an end to the rolling stone gathering no moss. Choices between traditional and Roth IRA are up for grabs. Depending on one's present status of income stream, setting up the latter may prove to be a challenge. As its terms and conditions stipulate contributions based on actual earnings, one should rightfully have a source of income via constant employment. This type of account presents the individual with a bill for taxes at point of contribution. Although this seems a disparaging method to encourage savings, it works to the benefit of those who foresee increasing tax rates in the future. Holders of the traditional feel the financial pinch upon withdrawal.

Since the pay-first concept may prove to be a mind-boggling exercise to the dutiful tax payer, various Roth IRA calculators step up to sort out any confusion in the midst. Although some request for more information, all generally require essential parameters such as current and retirement age, IRA balance and amounts of contribution. By punching in the truth as best as possible, cogs turn to calculate current and predicted rates in taxes and inflation. The result is a simple presentment of the supposed balance in one's retirement account upon reaching the checkered flag. Hopefully from that point onwards, the individual is opportune to withdraw a sufficient sum to satisfy all of life's needs with a healthy dash of comfort.

Fancier Roth IRA calculators generate more detailed table of figures and charts from point of commencement to completion of withdrawal. Other than natural causes, unplanned reasons such as health complications may escalate the withdrawal process. As long as one complies with age conditions of the account and withdrawal, no penalty is imposed.

Before Tax Retirement Savings Plans - Consider the 401K Plan

Those who are planning their retirement investments would be searching for before tax retirement savings plan. Although there are quite a lot of different plans that you may consider for your retirement, one of the best and the most popular one today is the 401K saving plan. This plan is offered to employees by the employers in the US and it offers several great benefits.

Tax Benefits

One of the biggest benefits of the 401K is that it is one of the before tax retirement savings plans. The contributions to the plan would be made pre-tax. You will be allowed to make contributions to the plan as an employee through your salary. Because these contributions are done before tax, you will not be required to pay any taxes on your contribution. Before tax retirement savings plans can provide you a reduction in tax liability when you contribute to them. Also, the money that would be saved in your account would continue to earn interest for you and would also be tax-deferred. The only tax that you will have to pay is on the money that you may withdraw from your plan later on as your regular income.

Employer Match

With 401K, quite a lot of companies offer additional benefits to the employees. Employer match is one such benefit where the employer would also contribute to the investment plan to match the contributions that you make to it. While some employers may pay a percentage of the contributions that you make, others may pay the exact amount that you pay with each contribution. The company may also have a schedule fixed where you would have to work for their company for a pre-determined time before you would be able to collect the deposits made by the company.

The Choices Available

With 401K investment plans you will be able to invest your retirement money in various different ways. You may invest in brokerage accounts that are self-directed, company stock, guaranteed investments, annuities, money markets, bonds or in stocks and mutual funds. Most of the plans will offer you a selection of options so that you can select something that you are comfortable with. In most cases you can withdraw money from your investment account in case of death, retirement, upon reaching the specified age of 55 or 59 ½, disability or when you terminate your employment. In various cases you will have to pay a penalty of 10% for early withdrawal if you withdraw the funds earlier than the maturity age.

With before tax retirement savings plans like the 401K, you will be able to enjoy tax benefits as well as a safe retirement pool that you can rely on for the future.

The Options Regarding A Rollover 401k Plan Introduction to Individual Retirement Account The Easy Way To Rollover 401K To IRA A Safe Winning Strategy Pairing Bullish and Bearish ETFs

401K Real Estate Investing May Not Be a Viable Option

When an individual is looking for long term opportunities they may consider 401k real estate investing. Real estate is a long term, income producing investment that is often ideal for retirement portfolios. There are many restrictions however that makes 401k real estate investing less appealing than mutual funds or stocks.

Property investing takes a lot of capital. Purchasing even one property is often prohibitive for most investors without outside financing. It is possible to withdraw funds from a 401k however there is a standard cap on withdraws of $50,000, less depending on the total value of the individual's account. Negotiating with a seller can be possible at times for if they are promised cash up front for their property they may be willing to lower their price to avoid the lengthy process of financing. Even with that in consideration a property valued at that low a price may not provide the necessary return to outweigh the initial costs.

It is possible to withdraw a small amount from a 401k to use as collateral for a larger loan, funds that can be returned with the profit from the transaction later on. Withdrawing funds unless for specific reasons incurs a penalty, though so this needs to be considered when contemplating this avenue. Also since the purpose of the account is to save for retirement, this choice should be used judiciously and the investor should be certain of the rate of return.

Another 401k real estate investing alternative is to roll a portion of the funds into a real estate IRA. This will provide more flexibility and if it is a Roth IRA, incurs less tax penalties than traditional property investing.

401K real estate investing is limited compared to other types of investment transactions. While it is possible it may not be viable and your ultimate retirement goals should be considered along with the pros and cons of this type of real estate investment. Consult an investment specialist, such as a financial planner, to help you make the best decision for all of your retirement planning and needs.

Withdrawing Your Funds From An IRA or Roth IRA

The IRA and Roth IRA are well suited to purposes of retirement savings. Nonetheless, any distributions before the golden years might have a major impact on your longer term plans. As a matter of fact, if you use an IRA for retirement, you may possibly have the desire to withdraw money to deal with emergency situations seeing that you do certainly have access to the money, therefore hampering your overall retirement strategies. If you wish to withdraw your money from an IRA and Roth IRA, there are many rules that apply at withdrawal.

Traditional IRA Withdrawal

In the event you established a Traditional IRA, it's likely that you have had tax deductions on your overall contributions into the IRA. This is the primary reason for investing within a Traditional IRA, correct?

All of the money taken from an IRA is taxed like regular earnings, which includes all of your contributions. Given that you invested the cash while not having to pay federal taxes, the IRS will take their slice when you get the invested funds (along with all gains) out. The state income tax is likewise applicable regardless of when you take out funds from an IRA.

Early Distributions - If you need to withdraw funds out of a Traditional IRA before the age of 59½, the IRS regulations call for you pay an added penalty of 10% along with the federal tax on the withdrawn sum. However, the 10% fee isn't assessed if one of the exclusions described below is relevant.

First-time home buyer (As much as $10,000) Qualified education expenditures for you, your spouse, your kids or even your grandkids. (Qualified education expenditures include things like post-secondary education, tuition, books, supplies and, in the event the individual is enrolled at least half-time, room and board.) Distributions attributable to your being disabled. (To qualify for the disability exemption, you need to have evidence that you aren't capable of working.) Eligible medical expenses in excess of 7.5% of one's adjusted gross income (AGI). Health care insurance costs for eligible people who are unemployed (only after twelve consecutive weeks of getting unemployment benefits).

Required Minimum Withdrawals

Some people opt to postpone having to pay tax on withdrawals for as long as they are able to due to the fact the cash grows within the IRA without getting taxed until you actually take it out. The IRS is entirely willing to wait for your tax payment, and they are going to get it in the end.

The guidelines state that a person having a Traditional IRA needs to initiate withdrawing minimum sums prior to April 1st following the year when your age is 70½ or surrender the funds the IRS. Thereafter, any sum of money needs to be withdrawn by December 31st every year. You are able to uniformly spread the tax by withdrawing money over your expected remaining lifetime.

Even when you want to withdraw a significant amount of funds in a specific year before or after you get to the age of 70 ½, you are going to nonetheless be required to meet the minimum standards for other years. In brief, you will not be given any credits against the minimal for withdrawing additional in a year.

Roth IRA Withdrawal

The Roth IRA is one of the developments nowadays to save money for retirement. How the Roth IRA is effective is the fact that the cash is federally taxed at the time it's contributed and then you owe no more federal tax for the cash, nor the interest earned, whenever you withdraw it in retirement.

Ideally, you are going to keep all the contributions to your Roth IRA in order that you will be left with the maximum amount accessible following retirement. Nevertheless, there may well be occasions when you have to remove cash early.

Roth IRA Guidelines For Distributions

All of the rules outlined below for the withdrawal of Roth IRA assets are only applicable towards the interest earned or investment earnings, since your own primary deposits can be withdrawn tax-free whenever you want. You have to keep records of your contributed funds to have the ability to prove for the IRS the contributions you made.

Distribution of Earnings (does not incorporate contributions you made to your Roth): Typically, you will find 3 unique types of distribution rules which determine the taxes of Roth IRA earnings:

Qualified Distribution - The distribution is entirely free. Non-Qualified with Exception - This is taxable as normal earnings and no added penalty Non-Qualified Distributions - This is taxed as normal earnings plus an additional penalty of 10%

Qualified Distributions: Distributions done on or following the day which you attain age 59 ½ Distributions made for your beneficiary (or your estate) upon your death Distributions attributable for your becoming disabled Qualified first-time house purchaser distributions (up to $10,000)

Non-Qualified Distributions with Exception: Eligible healthcare costs in excess of 7.5% of your adjusted gross income (AGI). Medical insurance coverage premiums for eligible people who are unemployed (only following twelve straight weeks of collecting unemployment benefits)

Non-Qualified Distributions: Basically all other circumstances where you withdraw earned interest out of your Roth IRA preceding age 59 ½ will be non-qualified (sorry).

A penalty free and no tax withdrawal from the Roth IRA for contributions provides you some flexibility that you frequently do not get with other retirement plans. However, you need to remember that the foremost function of the Roth IRA is to collect retirement money and the effect of compounding interest from leaving your money in the account does prove valuable in the long-term.

Managing a 401k Retirement Fund

The 401k program is an employer-sponsored program which is a retirement savings account. The account is fully directed by the employee. It gets its name from the section of the Internal Revenue Code that governs it. When seeking a new job, ask if a 401k will be offered as part of the compensation package. If this is the case, an employer may offer you an automatic enrollment into a program. Many of these programs are self-directed and you will only need to manage the plan once the enrollment begins.

In the absence of an automatic enrollment, determine the company's requirement for employee eligibility. In some companies, an employee must be mid- or upper-level to qualify for this program. Once your qualification is fulfilled, you must then find out when enrollment is open to you. Some of the qualifications include logging in a certain number of work hours and reaching the age of 21. Human resources departments, administrative offices, or the 401k administrator can answer your questions.

Consider who you want to inherit the proceeds from the 401k plan should an estate have to be settled in the event of your death. Should this occur and you are married, the money will automatically go to the spouse unless there is a will stating otherwise. An official waiver that must be registered with the IRS is also required for anyone other than a spouse to receive the proceeds.

With a self-directed package, the employee will be free to state the amount of the salary they want contributed to the plan each year. The employer may also have a means for bonuses to be contributed to the savings each year when certain qualifications are met. Employers will many times have a matching program which can be as much 10% to 50% of each dollar contributed by the employee. Be certain that all enrollment forms are accurately completed and completed in full to avoid any errors in distribution of the account at the appropriate time. Also, be sure there is an understanding of all terms and conditions to which you are agreeing prior to signing all forms. To be certain that the plan is established in the manner which offers you the greatest benefit, there may be a need to consult a tax attorney to review the structure of the plan. It is also important to assure yourself that the funds being deposited into this account are within the family's budget.

The decision on how the funds in the account should be invested must also be made. The age at which the account is started will determine how risky the investments should be. Checking the investments often is required, sometimes as much as daily if they are high risk; in order to determine the best time to sell. The idea is to manage the funds well so that the profits are maximized.

IRA Vs 401k Rules in Withdrawals

Two of the best retirement plans that offer great advantages are IRA or Individual Retirement Account and 401k Plans. IRA is one of the retirement plans wherein a portion of your income is saved and could be withdrawn by the time you reach your retirement years. The best time to start your withdrawals is at the age of 59 1/2. You might be asking why? This is considered the best time to get your money to avoid having a 10% tax penalty. There are different types of IRA with different investment options. Likewise, a 401k plan is a good way to keep your money and then withdrawn at a later time. The same tax penalties in IRA would apply on withdrawals. The only difference is that all 401k plans are sponsored by your employer where a payroll deduction scheme is implemented.

Now, rules must be understood whenever you take part in either of the retirement plans mentioned. IRA vs 401k rules have differences and similarities at the same time. Factors like the time of withdrawals, penalty-free withdrawals, tax reports and of course, the distribution requirements make the two unique. Let us not forget the investments that could be considered. - IRA vs 401k Contributions - Contributions in IRA are limited to $5,000 every year. On the other hand, 401k contributions are higher. Simple 401k requires the maximum contribution of $11,500 and for Traditional and Safe Harbor 401k; it reaches up to $16,500. This is an employer imposed contribution where 10% of your yearly salary is a requirement.

IRA vs 401k Loans - Account holders in IRA are not allowed to grant loans. This is in contrast to 401k wherein people can generally borrow money as long as it is paid. If this is not done, penalties would be applied to the account.

IRA vs 401k Withdrawals - IRA early withdrawals are accepted if the account holder is disabled but for 401k, you may use your funds when it is used for medical expenses. You must be qualified in order to avail this. The money taken must be tax deductible to qualify and must exceed 7.5% of your adjusted gross income.

IRA vs 401k Tax Reports - Since money is taken from your pay check, this is directly placed into your 401k plan. Reducing the taxable income must be reported by filling out a W-2 form. In IRA, you must declare the amount of contribution on a Form 1040 where taxable income is deducted correspondingly. Pretty much not different from 401k.

IRA vs 401k Investments - A variety of investments are provided by IRA and you may open and close it almost readily. While in 401k, investment choices are limited as well as the changes. Some only let you make the changes every 3 months or so.

Retirement plans accept investments like stocks, bonds, and real estate IRA. Self directed IRAs are very much similar with 401k but this has lower contribution limits, simpler and less expensive administration. Of all investments available, the one that is mostly chosen is real estate IRA. Self directed IRAs and 401k both acknowledge this investment type but when investing in real estate, IRA self directed custodians are limited. You may need to search for trustees who widely offer this.

How to Start Investing in a Roth IRA

Are you concerned because you don't yet have any money set aside for retirement? If so, there is no reasons to worry, start investing now. The best way to do this is to invest in a tax-advantage retirement account such as a Roth IRA. A Roth individual retirement account allows you to invest up to a certain amount of money each year into an account that you pay taxes on. When you take it out for retirement, you don't have to pay any taxes on it, not even the earnings.

The good thing about IRAs over a 401K or 403B is that you get to choose where the money goes. With a 401K, you're employer picks the fund. With an IRA, you get to choose the mutual fund.

You can start an IRA at many banks or at a brokerage firm. Talk to your banking representative about what individual retirement accounts they have to offer and how to get started. You might get a wider range of funds to choose from if you use a brokerage firm. You can set up an appointment with a brokerage firm, or you can use an online brokerage firm.

Contribute to your IRA without a thought. This means have the money withdrawn and added to your account before you get your paycheck, if possible. This way, you don't even miss the money because you aren't paying it out of your paycheck. You will notice a bit less money at first, but before long, you'll be used to it and you'll be making money for your retirement.

Why You Should Have Roll Over 401K

If you've been with your employer for five years or more, chances are you accumulated enough savings for the first few years of your retirement. However, you'll never know when a company merger or take-over will take place. Even if that doesn't happen, there are a few reasons why you should consider roll over 401K to another third party investment.

When you got your first job, your company might have assisted you in setting up your 401K. This relatively new type of retirement plan essentially allows you to set up a tax deferred investment which allows you to accumulate funds up until you reach sixty years of age. It is tax deferred in that you don't have to pay income taxes until the fund is withdrawn. Employers also typically match the employees contribution to increase the savings.

A roll over simply refers to moving you current plan from a former (or even current) employer into another plan or individual retirement account (IRA). Many IRAs have similar policies to your previous investment, and there are many reasons why you would want to consolidate your investment into an individual account. If you have several 401k plans from different jobs, then you may want to roll over to an IRA.

The first reason why many employees choose to do so is to cash out, although this is not a very good idea. Remember that these traditional investments are tax-deferred, and you will have to pay the tax on the amount you withdrew early, plus a penalty. The general rule is a ten percent penalty on the amount taken out, although there are a few exceptions. The rule tries to discourage people from doing this so that they can get more benefits later on after they retire.

Another reason people choose to do so is to cut down on the expenses. With individual retirement accounts, the internal costs are usually much lower because you get to decide how the money will be invested. Because your company dictates how the plan is spent, they may place it in a higher yielding but riskier venture.

The average internal cost for the usual 401k is around two to three percent while IRAs can have less than one percent in total expenses. Those figures can have a huge impact ten or twenty years down the road.

If you've changed jobs frequently over the last few years, you may have different investment plans initiated by your previous employers. While there is nothing wrong with this, you'll end up with different accounts. Not only will you receive more paper work, those other accounts will remain dormant and the funds will not be maximized. If you consolidate those funds, you'll be able to divert the investments and maximize all your savings in a good portfolio.

Keeping track of all that paperwork can also be a hassle. Once you roll over 401K to only one investment plan, you'll have more time to go over the fine details and you won't have to worry so much.

Self Directed IRA Investing/Lending Success

You can use your self directed IRA or 401k for great returns in real estate private lending.

Is your 401k looking more like a 4K? Are your IRA returns just breaking even? Are you sick of losing money yet? You need someone that can turn your losing accounts into 8%-12% annual returns for your self directed IRA or 401k! Imagine a world with multiple opportunities to choose from and you get to choose the best deal for you.

You need to become the bank and with your "self directed" IRA or 401k you can!!! Naturally, the best and most profitable loan for a lender is one that is short term with the highest possible interest rate. The best high interest rate loan with a short term period is a hard money loan! Hard money is typically secured with real estate. This is a low "loan to value" loan, not the high leverage loans of the recent past, so your money is protected. In the past people seeking this type of loan had limited options. However, real estate investors can afford higher interest rates because the returns in real estate are always much higher than the interest charged but again finding a loan when you have the opportunity has always been an obstacle. You need an expert that eliminates this problem by bringing everyone together.

Ask yourself where else can I get this kind of return for my self directed IRA or 401k? In the stock market? Seriously, they have preached that lie to us for decades only so they can manipulate and squeeze out all of our money.

Picture a world of "cherry picking" the best opportunities! Pick one. Pick many. Or, pick none. It's your opportunity. If you ever dreamed of investing in real estate but just feared all the unknowns this investment eliminates all the guess work. By lending your money in real estate you reduce all the risk and unknown. You are in the driver's seat.

Self Directed IRA Investing/Lending.

Your self directed IRA or 401k is the best vehicle for maximum returns you just need a marketplace that can provide the opportunities. Opportunities which deliver a multitude of short-term loans to your decision table. The best loans are typically 6 months or less "fix and flip" opportunities as America works through its current foreclosure mountain. There are cities where houses can be bought for much less than their true values after repair if you know where to find them. You simply loan on these opportunities at low "loan to value ratios" and you get to cherry pick the best opportunities! Your self directed IRA or 401k deserves the best returns and you have the ultimate source for finding them!

The Options Regarding A Rollover 401k Plan Introduction to Individual Retirement Account The Easy Way To Rollover 401K To IRA A Safe Winning Strategy Pairing Bullish and Bearish ETFs

IRA Income - Higher Retirement Income Equals Less In Taxes?

If your IRA income goes up will you pay more in taxes or less? Usually more! I am not a CPA but with some common sense and careful thought we can decrease your taxes due and increase your IRA income!

If you are a CD investor at the bank and take IRA income you might be able to lower your taxes due. How? Let's take a look.

For example, if you are taking income in the amount of $30,000 per year and you have $220,000 invested in CD's that are not in an IRA consider this idea for example and see if it might fit into your exact situation. You might be taking way more IRA income or have way more money in CD's to work with.

Since I am not a CPA and like to work with easy round numbers let's make it easy for all of us. Your taxes due at 25% of $30,000 would equal $7,500. If you were also earning interest on your CD at 3% you would pay $1,650 on the $6,600 earned from your CD each year whether you take the money out or not.

What if we lowered the need for your income withdrawal to $15,000 by annuitizing all or part of your CD?

You annual payments could easily equal $15,000 plus your missed CD money per year and since you would be getting part of your principal back you would still only pay around $1,650 a year in taxes. You would save $3,750 on your IRA income taxes and saved money is made money so really you end up with $33,750 in IRA income each year plus we could always increase your income to replace the lost CD interest if you need it as well. If not then we would just leave that money in the investment. You might even drop into a lower tax bracket and save even more.

In this idea your IRA can then grow much faster to replace your CD value. You get more money, less taxes, higher growth in your IRA, and at least half of your IRA income is guaranteed now at a certain rate. Your monthly stream of new money can also pass on to your heirs in most cases. Sound good?

If you are interested in taking a look at this idea be sure to check with a competent annuity professional. Most agents and brokers have never annuitized an annuity and don't truly have a grasp as to when it is a good idea due to lack of experience. Be sure to ask about how much experience they have in working with annuities. And remember, there is never a bad time to make more money!

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