Some of the tools that are mentioned during retirement or estate planning will refer to a contribution being “tax deferred” as a benefit. But what exactly does this mean? Tax deferred normally means that you will not pay a tax now, but will later. This phrase is commonly used when discussing various retirement plans. For example, an employer-sponsored 401K plan is considered tax deferred. When money is taken from your paycheck and put into your 401K account, that is income that is not taxed … [Read more...] about What Does the Phrase “Tax-Deferred” Mean in Retirement Planning?
Retirement Planning
Estate and Retirement Planning for the Small Business Owner
Owning your own business has its advantages, but when it comes to estate planning and retirement planning, there can be challenges. In particular, small business owners do not have the luxury of an employer sponsored retirement or pension plan at their disposal – for they are the employer. Over the last two decades, there have been several new retirement plans that have become popular, particularly for the self employed or small business owner. Three of the most popular choices are: Roth … [Read more...] about Estate and Retirement Planning for the Small Business Owner
Roth IRA’s and Estate Planning
One aspect of estate planning that many who try – the ‘DIY’ route – do not quite get right, is the coordination of all aspects of the plan – including retirement accounts that complement your estate plan. One plan that has increased in popularity over the past few years is a Roth IRA account. A Roth IRA account allows you to avoid future taxation of your retirement funds by making non-deductible contributions now. While a Roth IRA does not offer the immediate tax savings of a traditional IRA … [Read more...] about Roth IRA’s and Estate Planning
Senior Citizen Housing Options
As we age, our housing and care needs change. While in the past, housing options were somewhat limited for senior citizens, typically nursing homes, living with family members or living independently were the only options, there are now more options available for seniors. Continuing Care Retirement Communities Continuing Care Retirement Communities (CCRC’s) are a relatively new concept that offer a continuum of care for senior citizens. A CCRC offers independent living options, normally with … [Read more...] about Senior Citizen Housing Options
IRAs: Traditional vs. Roth
Are you considering opening an Individual Retirement Account? There are several types to choose from, but the two most common are Traditional and Roth IRAs. Both are excellent savings opportunities, but they vary in several ways. Tax Deferred versus Tax Free Earnings A traditional IRA allows you to save non-taxed income for your retirement. When you contribute to this type of account, the amount is deducted from your yearly taxable earnings. This allows you to defer taxes on this money and to … [Read more...] about IRAs: Traditional vs. Roth
Avoiding Costly Retirement Mistakes
Even if you have been planning your retirement for years, you may not actually be ready. Not only are people living longer these days, but they are also far more active during their retirement years. And more activity often means more money. But if you take a few steps now to avoid some of the most common mistakes people make when planning for retirement, you could avoid financial disaster in your later years. Understand That It’s Never Too Late – No matter how old you are, it is never too … [Read more...] about Avoiding Costly Retirement Mistakes
