Posted on Monday, 13th May 2013 by Paul Risser

What makes financial sense for some baby boomers may not make sense for you.

Provided by Paul H. Risser

There is no “typical” retirement. Many baby boomers want one and believe that they will have one, and their futures may indeed unfold as planned. For others, the story will be different. Just as there is no routine retirement, there are no routine financial moves that should be made before or during this phase of life, and no universal truths about the retirement experience. 

Here are some commonly held assumptions – suppositions that may or may not prove true for you, depending on your financial and lifestyle circumstances.  

#1. You should take Social Security as late as possible. Generally speaking, this is a smart move. If you were born in the years from 1943-1954, your monthly benefit will be 25% smaller if you claim Social Security at 62 instead of your “full” retirement age of 66. If you wait until 70 to take Social Security, your monthly benefit will be 32% larger than if you had taken it at 66.¹

So why would anyone apply for Social Security benefits in their early 60s? The fact is, some seniors really need the income now. Some have health issues or the prospect of hereditary diseases influencing their choice. Single retirees don’t have a second, spousal income to count on, and that is another factor in the decision. For most people, waiting longer implies a larger lifetime payout from America’s retirement trust. Not everyone can bank on longevity or relative affluence, however. 

#2. You’ll probably live 15-20 years after you retire. You may live much longer, especially if you are a woman. According to the Census Bureau, the population of Americans 100 or older grew 65.8% between 1980 and 2010, and 82.8% of centenarians were women in 2010. The real eye-opener: in 2010, slightly more than a third of America’s centenarians lived alone in their own homes. Had their retirement expenses lessened with time? Doubtful to say the least.²

#3. You should step back from growth investing as you get older. As many investors age, they shift portfolio assets into investment vehicles that offer less risk than stocks and stock funds. This is a well-regarded, long-established tenet of asset allocation. Does it apply for everyone? No. Some retirees may need to invest for growth well into their 60s or 70s because their retirement savings are meager. There are retirement planners who actually favor aggressive growth investing for life, arguing that the rewards outweigh the risks at any age.

#4. The way most people invest is the way you should invest. Again, just as there is no typical retirement, there is no typical asset allocation strategy or investment that works for everyone. Your time horizon, your risk tolerance, and your current retirement nest egg represent just three of the variables to consider when you evaluate whether you should or should not enter into a particular investment.

#5. Going Roth is a no-brainer. Not necessarily. If you are mulling a Roth IRA,  Roth 401(k), or Roth TSP conversion, the big question is whether the tax savings in the end will be worth the tax you will pay on the conversion today. The younger you are – roughly speaking – the greater the possibility the answer will be “yes”, as your highest-earning years are likely in the future. If you are older and at or near your peak earning potential, the conversion may not be worth it at all.

#6. A lump sum payout represents a good deal. Some corporations are offering current and/or former workers a choice of receiving pension plan assets in a lump sum payout instead of periodic payments. They aren’t doing this out of generosity; they are doing it because actuaries have advised them to lessen their retirement obligations to loyal employees. For many pension plan participants, electing not to take the lump sum and sticking with the lifelong periodic payments may make more sense in the long run. The question is, can the retiree invest the lump sum in such a way that might produce more money over the long run, or not? The lump sum payout does offer liquidity and flexibility that the periodic payments don’t, but there are few things as economically reassuring as predictable, recurring retirement income. Longevity is another factor in this decision.

#7. Living it up in your 60s won’t hurt you in your 80s. Some couples withdraw much more than they should from their savings in the early years of retirement. After a few years, they notice a drawdown happening – their portfolio isn’t returning enough to replenish their retirement nest egg, and so the fear of outliving their money grows. This is a good argument for living beneath your means while still carefully planning and budgeting some “epic adventures” along the way.

Your retirement plan should be created and periodically revised with an understanding of the unique circumstances of your life and your unique financial objectives. There is no such thing as generic retirement planning, and that is because none of us will have generic retirements.

Investment Advisor Representative with and Securities and Investment Advisory Services offered through Transamerica Financial Advisors, Inc. (TFA) member FINRA, SIPC and a Registered Investment Advisor. Non-Security products and services are not offered through TFA.

Paul H. Risser may be reached at prisser@tfamail.com, www.risserfinancial.com, or

1-866-274-7737. Paul may also be found on Facebook and Linkedin.

Visit our other informative sites

• Federal Government Jobs & Career Center
• FREE Federal Employee’s Retirement Planning Guide
• Federal Retiree Job Opportunities
• Federal Employee & Retiree BLOG
• Federal Employee’s Career Development & IDP Center
• Post Office Jobs & Career Center
• Job Search – All Sectors
• Environmental Health & Safety Job Center
• Nuclear Jobs and Careers
• Stolen Car Plates & Recovery Guide
• Take Charge of Your Federal Career (A Career Planning Workbook)
• The Book of U.S. Government Jobs (How to Apply for Federal Jobs)

• 2013 Excel Leave Chart (target 2013 retirement dates and determine exact leave balances for each date)
• How to be Emotionally and Physically Prepared When You Retire
• How to be Financially Prepared When You Retire
• Master Retiree Contact List (Important contact numbers and information)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

Investment Advisor Representative with and Securities and Investment Advisory Services offered through Transamerica Financial Advisors, Inc. (TFA) member FINRA, SIPC and a Registered Investment Advisor. LD42774-2/12.

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is not a solicitation or a recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Neither Transamerica Financial Advisors, Inc. (TFA) nor its representatives provide legal, tax nor accounting advice. Persons who provide such advice do so in a capacity other than as a registered representative of TFA.

Citations.

1 – www.forbes.com/sites/janetnovack/2011/02/15/the-big-decision-when-to-take-social-security/ [2/15/11]

2 – money.usnews.com/money/retirement/articles/2013/01/07/what-people-who-live-to-100-have-in-common [1/7/13]

.

Posted in BENEFITS / INSURANCE, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

Comments (0)|  Print This Post

Posted on Friday, 3rd May 2013 by Dennis Damp

Norma, a federal employee that elected to collect Social Security while still working, commented on my last article on this subject.

She stated that while it is true you don’t decrease social security benefits if you are still working at age 66 or older you may be subject to taxes on some of the social security money you receive.

She states, “People will have to pay Federal taxes on their Social Security benefits if you file a Federal tax return as an individual and your total income is more than $25,000.  If you file a joint return, you will have to pay taxes if you and your spouse have a total income of more than $32,000. So I, for instance, have to pay taxes on anything I make over $32,000. The good news for getting around this is to max out your TSP with whatever you are getting for social security. If you are already maxed out you will end up paying additional taxes.”

It’s been costing Norma $5,000 to $7,000 in taxes a year because she initially didn’t put extra into her TSP account. However, this year she will owe nothing for social security when she does her federal taxes because she increased her TSP contributions for 2013.

The other good news is that each year you work while collecting you get an increase in your social security (Norma is getting about $45) as they drop her earliest years she worked and add the latest year.  This is in addition to the cola.  So by the time she reaches 70 Norma basically gained the 8 percent or so she would have received had she not started collecting.

Medicare Discussion (Part A and B)

Norma also provided insight into Medicare B (Medical Insurance). Norma had health expenses three years ago and signed up for Medicare B while still working. Now she has to pay the Medicare B plus her Blue Cross FEHB premiums.  She wasn’t sure how Medicare B affected her FEHB plan.  Since she is still working Blue Cross is her primary insurance and she is paying for Medicare (which also has a deductable) however only Blue Cross pays for her insurance.  She stated that, “Medicare to date has paid about $30.00 dollars over three years and until I retire and it becomes my primary I am wasting money paying the monthly premium.”

Many federal employees and retirees approaching age 65 are confused about Medicare; especially Medicare B and if it is worth paying the additional cost for Medicare B coverage when you have FEHB coverage.  If you are still working at age 65 and beyond your FEHB coverage is primary. When you retire at age 65 or older Medicare becomes your primary provider if you signed up for it and your FEHB plan becomes your supplemental coverage.

Note:  You don’t have to take Part B coverage if you don’t want it, and your FEHB plan can’t require you to take it. But, there are some advantages to enrolling in Part B. For example, you have the advantage of coordination of benefits between Medicare and your FEHB plan, reducing your out-of-pocket costs; your FEHB plan may waive its copayments, coinsurance, and deductibles for services and covered by Part B and some services covered by Part B might not be covered or are only partially covered by your plan, such as orthopedic and prosthetic devices, durable medical equipment, home health care, and medical supplies (check your plan brochure for details).

The FEHB health plan brochures explain how they coordinate benefits with Medicare, depending on the type of Medicare managed care plan you have. If you are eligible for Medicare coverage read this information carefully, as it will have a real bearing on your benefits.

The decision to enroll in Medicare is yours. OPM encourages you to apply for Medicare benefits 3 months before you turn age 65. It’s easy.  Just call the Social Security Administration number 1-800-772-1213 to set up an appointment to apply. If you do not apply for one or more Parts of Medicare, you can still be covered under the FEHB Program. Visit their website for forms and additional information.

If you can get premium-free Part A coverage, OPM advises you to enroll in it. Most Federal employees and annuitants are entitled to Medicare Part A at age 65 without cost. When you don’t have to pay premiums for Medicare Part A (Hospital Insurance), it makes sense to obtain coverage. It can reduce your out-of-pocket expenses as well as costs to FEHB, which can help keep FEHB premiums down.

Generally, plans under the FEHB Program help pay for the same kind of expenses as Medicare. FEHB plans also provide coverage for emergency care outside of the United States which Medicare doesn’t provide. Some FEHB plans also provide coverage for dental and vision care.

For more information about your Medicare options review the resources and articles on our Medicare pages. You will find them very informative and helpful, especially links to OPM’s FEGLI and Medicare Booklet and Tammy Flanagan’s 3 part series on this subject.

Retiree Job Opportunities

Many companies and state government departments recently posted jobs on our site to attract federal retirees. You will find jobs ranging from ADT Security Services, Bank teller and client services, FLSA Classifier, research, sales and everything in between. Most are part time and you can tailor you hours to your routine.  Many other opportunities exist for those looking to supplement their retirement income or to start a second career.  We provide this free job listing service to companies that are seeking to hire experienced retired federal workers.

Recent Forum Host Articles:

• Collecting Social Security While Still Working & CSRS Offset Concerns by Dennis Damp
• Retirement Seen Through Your Eyes by Paul Risser
• TSP Investment Timing and The Retiree’s Dilemma by Dennis Damp
• The Sequester’s Many Faces – Furloughs, Pay Freeze, & Fewer Resources by Dennis Damp
• Maui is calling Me – Taking a Winter Break by Nancy Holston

Request a Retirement Benefits Summary & Analysis from a local adviser. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections. This service is not affiliated with www.federalretirement.net.

Learn more about your benefits, employment, and financial planning issues on our site and visit our Blog frequently at  https://fedretire.net to read all forum articles.

Visit our other informative sites

• Federal Government Jobs & Career Center
• FREE Federal Employee’s Retirement Planning Guide
  • Federal Retiree Job Opportunities
  • Federal Employee & Retiree BLOG
• Federal Employee’s Career Development & IDP Center
• Post Office Jobs & Career Center
• Job Search – All Sectors
• Environmental Health & Safety Jobs Center
• Nuclear Jobs & Careers – High Paying Jobs
• Stolen Car Plates & Recovery Guide
• Take Charge of Your Federal Career
• The Book of U.S. Government Jobs

• 2013 Excel Leave Chart (target 2013 retirement dates and determine exact leave balances for each date)
• How to be Emotionally and Physically Prepared When You Retire
• How to be Financially Prepared When You Retire
• Master Retiree Contact List (Important contact numbers and information)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice and our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change. The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Posted in BENEFITS / INSURANCE, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

Comments (0)|  Print This Post

Posted on Friday, 12th April 2013 by Dennis Damp

A site visitor to one of our forums stated that she was 66 and still working and was CSRS offset. A colleague suggested that she think about drawing social security now versus waiting until she retires. Once you reach age 66 you can earn unlimited amounts without reducing your Social Security benefit. She had been giving the matter some thought in terms of the pros and cons.

She stated, “It seems to be the obvious pros would be to have the money now since none of us know how many years we will be able to collect and having the extra money now would enable me to increase my contributions considerably to the TSP.  The obvious con seems to be that if left untouched, the social security will increase 8% each year until I reach age 70.  It’s difficult to find any savings vehicle that would match 8%; while some of the funds in TSP have had years of growth larger than 8%, it’s still the stock market (except for the G fund which has growth of under 5%) and therefore there is no guarantee that the extra money invested would gain 8% or more and could just as easily lose money, depending on the economy & world events.

Any thoughts or pros and cons I’ve overlooked?  I realize it comes down to a personal decision but I’m trying to study all facets of the issue before deciding one way or the other.  I know, of course, that I don’t have to make a decision right now.  I am not sure how much longer I will work before retiring – at the earliest, January 2014 but I may delay it until 2015 or later.  I’m just not sure.”

Reply: Since you are at the full retirement age, the decision is basically whether to receive funds now or a greater amount later.  If we knew how long the retirement funds needed to last this would be an easy answer.  I would estimate each annuity amount (payable at 66 and at 70) and how long you would have to live to make up the difference if you wait until you are 70 to collect the higher benefit.

Sometimes the decision is not about us alone, but also about a spouse’s income as well.  For example, a married couple may elect for the lower wage earner to receive Social Security early and the higher wage earner who is still working and adding significant income to the calculation to wait.  This way if the person earning more money retires at age 66 or older the spouse can then elect the higher spousal benefit or if they die, the spouse can opt to receive the larger annuity of the higher earner.

One other thing to consider is if this would allow you to put more away in your TSP account.  After you retire, you cannot contribute money to a 401k or an IRA because deposits must come from wages.  Your beneficiaries can inherit an IRA or 401k, but usually only the spouse can receive Social Security benefits.  If you are already contributing the maximum to your TSP, this may not be a consideration.

You may want to hire a certified financial planner to review your situation in detail to provide more specialized advice in your situation.  They can look at the cost of your debt, your contribution amount to TSP, your Social Security income and your life expectancy.

Recent Forum Host Articles:

• TSP Investment Timing and The Retiree’s Dilemma by Dennis Damp
• The Sequester’s Many Faces – Furloughs, Pay Freeze, & Fewer Resources by Dennis Damp
• Maui is calling Me – Taking a Winter Break by Nancy Holston
• A Roth IRA’s many Benefits by Paul Risser
• TSP Annual Statements and Highlights by Dennis Damp

Request a Retirement Benefits Summary & Analysis from a local adviser. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections. This service is not affiliated with www.federalretirement.net.

Learn more about your benefits, employment, and financial planning issues on our site and visit our Blog frequently at  https://fedretire.net to read all forum articles.

Visit our other informative sites

• Federal Government Jobs & Career Center
• FREE Federal Employee’s Retirement Planning Guide
  • Federal Retiree Job Opportunities
  • Federal Employee & Retiree BLOG
• Federal Employee’s Career Development & IDP Center
• Post Office Jobs & Career Center
• Job Search – All Sectors
• Environmental Health & Safety Jobs Center
• Nuclear Jobs & Careers – High Paying Jobs
• Stolen Car Plates & Recovery Guide
• Take Charge of Your Federal Career
• The Book of U.S. Government Jobs

• 2013 Excel Leave Chart (target 2013 retirement dates and determine exact leave balances for each date)
• How to be Emotionally and Physically Prepared When You Retire
• How to be Financially Prepared When You Retire
• Master Retiree Contact List (Important contact numbers and information)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice and our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change. The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Posted in ANNUITIES / ELIGIBILITY, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

Comments (0)|  Print This Post

Posted on Saturday, 6th April 2013 by Paul Risser

After you leave work, what will your life look like?

How do you picture your future? If you are like many baby boomers, your view of retirement is likely pragmatic compared to that of your parents. That doesn’t mean you have to have a “plain vanilla” tomorrow. Even if your retirement savings are not as great as you would prefer, you still have great potential to design the life you want.

With that in mind, here are some things to think about.

What do you absolutely need to accomplish? If you could only get four or five things done in retirement, what would they be? Answering this question might lead you to compile a “short list” of life goals, and while they may have nothing to do with money, the financial decisions you make may be integral to achieving them. (This may be the most exciting aspect of retirement planning.)

What would revitalize you? Some people retire with no particular goals at all, and others retire burnt out. After weeks or months of respite, ambition inevitably returns. They start to think about what pursuits or adventures they could embark on to make these years special. Others have known for decades what dreams they will follow … and yet, when the time to follow them arrives, those dreams may unfold differently than anticipated and may even be supplanted by new ones.

In retirement, time is really your most valuable asset. With more free time and opportunity for reflection, you might find your old dreams giving way to new ones. You may find yourself called to volunteer as never before, or motivated to work again but in a new context.

Who should you share your time with? Here is another profound choice you get to make in retirement. The quick answer to this question for many retirees would be “family”. Today, we have nuclear families, blended families, extended families; some people think of their friends or their employees as family. You may define it as you wish and allocate more or less of your time to your family as you wish (some people do want less family time when they retire).

Regardless of how you define “family” or whether or not you want more “family time” in retirement, you probably don’t want to spend your time around “dream stealers”. They do exist. If you have a grand dream in mind for retirement, you may meet people who try to thwart it and urge you not to pursue it. (Hopefully, they are not in close proximity to you.) Reducing their psychological impact on your retirement may increase your happiness.

How much will you spend? We can’t control all retirement expenses, but we can control some of them. The thought of downsizing may have crossed your mind. While only about 10% of people older than 60 sell homes and move following retirement, it can potentially bring you a substantial lump sum or lead to smaller mortgage payments. You could also lose one or more cars (and the insurance that goes with them) and live in a neighborhood with extensive, efficient public transit. Ditching land lines and premium cable TV (or maybe all cable TV) can bring more savings. Garage sales and donations can have financial benefits as well as helping you get rid of clutter, with either cash or a federal tax deduction that may be as great as 30-50% of your adjusted gross income provided you carefully itemize and donate the goods to a 501(c)(3) non-profit.¹

Could you leave a legacy? Many of us would like to give our kids or grandkids a good start in life, or help charities or schools – but given the economic realities of retiring today, there is no shame in putting your priorities first.

Consider a baby boomer couple with, for example, $285,000 in retirement savings. If that couple follows the 4% rule, the old maxim that you should withdraw about 4% of your retirement savings per year, subsequently adjusted for inflation – then you are talking about $11,400 withdrawn to start. When you combine that $11,400 with Social Security and assorted investment income, that couple isn’t exactly rich. Sustaining and enhancing income becomes the priority, and legacy planning may have to take a backseat. In Merrill Lynch’s 2012 Affluent Insights Survey, just 26% of households polled (all with investable assets of $250,000 or more) felt assured that they could leave their children an inheritance; not too surprising given what the economy and the stock market have been through these past several years.²

How are you planning for retirement? This is the most important question of all. If you feel you need to prepare more for the future or reexamine your existing plan in light of changes in your life, then confer with a financial professional experienced in retirement planning.

Investment Advisor Representative with and Securities and Investment Advisory Services offered through Transamerica Financial Advisors, Inc. (TFA) member FINRA, SIPC and a Registered Investment Advisor. LD42774-2/12

Paul H. Risser may be reached at 1-866-274-7737, prisser@tfamail.com, or www.risserfinancial.com

Recent Forum Host Articles:

• The Sequester’s Many Faces by Dennis Damp
• Maui is Calling Me – Taking a Winter Break by Nancy Holston
• A ROTH IRA’s Many Benefits by Paul Risser
• TSP Annual Statements and Highlights by Dennis Damp
• 1099R Statements, Replacement Copies, and Upcoming Changes by Dennis Damp

Visit our other informative sites

• Federal Government Jobs & Career Center
• FREE Federal Employee’s Retirement Planning Guide
• Federal Retiree Job Opportunities
• Federal Employee & Retiree BLOG
• Federal Employee’s Career Development & IDP Center
• Post Office Jobs & Career Center
• Job Search – All Sectors
• Environmental Health & Safety Job Center
• Nuclear Jobs and Careers
• Stolen Car Plates & Recovery Guide
• Take Charge of Your Federal Career (A Career Planning Workbook)
• The Book of U.S. Government Jobs (How to Apply for Federal Jobs)

• 2013 Excel Leave Chart (target 2013 retirement dates and determine exact leave balances for each date)
• How to be Emotionally and Physically Prepared When You Retire
• How to be Financially Prepared When You Retire
• Master Retiree Contact List (Important contact numbers and information)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

Citations.

1 – www.bankrate.com/finance/financial-literacy/ways-to-downsize-during-retirement.aspx [2/28/13]
2 – wealthmanagement.ml.com/Publish/Content/application/pdf/GWMOL/Report_ML-Affluent-Insights-Survey_0912.pdf [9/12]

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is not a solicitation or a recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Neither Transamerica Financial Advisors, Inc. (TFA) nor its representatives provide legal, tax nor accounting advice. Persons who provide such advice do so in a capacity other than as a registered representative of TFA.

Posted in ANNUITIES / ELIGIBILITY, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

Comments (0)|  Print This Post

Posted on Monday, 1st April 2013 by Dennis Damp

The stock market is up and the DOW stock market index has recovered from its low of 6629 in March of 2009 to over 14,000 recently. Interest rates and yields on CDs, treasuries, and savings have remained historically low. The government has artificially maintaining interest rates well below norm to stimulate the economy and to encourage savers to spend and dive into high yielding and higher risk investments like stocks and housing. Most of this nation’s Gross Domestic Product (GDP) is based on consumer spending since we lost much of manufacturing years ago.  I discussed in Size Matters, Especially in Retirement  how the government is taxing all of us, especially retirees on fixed incomes, by maintaining artificially low yields on safe and secure CDs, savings accounts, and treasuries.  

The dilemma that we face now is do we continue to suffer with miniscule yields on our savings or dive back into higher risk investments such as stocks to take advantage of the upswing.  Unfortunately the ship has already sailed; the market is up over 100% and a correction may be in sight. Nothing goes straight up forever and many experts anticipate a market correction while other suggest the market will continue on this trajectory at least until the end of the year.  

Many jump back on the band wagon long after the gains have been made. Some panicked in 2007 and jumped totally out of the THRIFT stock funds into the G Fund and stayed there after losing a good portion of their savings.  Too often we ride the wave of sentiment and that means we sell low and buy high and lose both ways.  Federal employees in their early to mid careers have time to recover and are still contributing to their TSP accounts.  Many financial planners suggest those in early to mid career stay invested in a diverse mix of stock and bond funds until you are close to retirement.  The closer you are to retirement the more you have to play defense and PROTECT what you saved for a lifetime.

If you’re close to retirement or now retired ask yourself if you can afford to lose a significant portion of your TSP, IRA or other 401K funds if the market takes an unexpected and undesirable turn? Retirees have time against them to recover their losses. If you will need these funds to live on you may have to accept the lower returns and you will sleep well at night. If you can take some risk look for a market correction and jump back in with a conservative lower risk level you can live with. The Life Cycle L TSP funds do moderate the risk and as you approach the target date of the fund the mix becomes more conservative until the majority of your TSP is in the bond fund. In retirement many consider the L Income fund that still keeps a small portion of your account invested in stocks to help you keep up with inflation.

For other savings and investments retirees may wish to pursue a conservative approach such as I discuss in When CDs Come Due Earn Higher Yields.  If you are unfamiliar with investing in general you may need to consult a professional for help. Managing retirement funds isn’t easy and it does take time and even with understanding there is always risk no matter what you are invested in.

Recent Forum Host Articles:

• The Sequester’s Many Faces – Furloughs, Pay Freeze, & Fewer Resources by Dennis Damp
• Maui is calling Me – Taking a Winter Break by Nancy Holston
• A Roth IRA’s many Benefits by Paul Risser
• TSP Annual Statements and Highlights by Dennis Damp

Request a FREE Retirement Benefits Summary & Analysis from a local adviser. A sample analysis is available for your review. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections. This service is not affiliated with www.federalretirement.net.

Learn more about your benefits, employment, and financial planning issues on our site and visit our Blog frequently at  https://fedretire.net to read all forum articles.

Visit our other informative sites

• Federal Government Jobs & Career Center
• FREE Federal Employee’s Retirement Planning Guide
  • Federal Retiree Job Opportunities
  • Federal Employee & Retiree BLOG
• Federal Employee’s Career Development & IDP Center
• Post Office Jobs & Career Center
• Job Search – All Sectors
• Environmental Health & Safety Jobs Center
• Nuclear Jobs & Careers – High Paying Jobs
• Stolen Car Plates & Recovery Guide
• Take Charge of Your Federal Career
• The Book of U.S. Government Jobs

• 2013 Excel Leave Chart (target 2013 retirement dates and determine exact leave balances for each date)
• How to be Emotionally and Physically Prepared When You Retire
• How to be Financially Prepared When You Retire
• Master Retiree Contact List (Important contact numbers and information)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice. Our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

Comments (0)|  Print This Post

Posted on Wednesday, 13th March 2013 by Dennis Damp

The Sequester has many feds concerned about furloughs, possibly an extended pay freeze, and fewer resources to get the job done.  Retirement applications may also take longer to process if HR specialists are furloughed. The good news is that it isn’t happening overnight and Congress is working to reduce the impact when this kicks in. I recall being furloughed several times for a day or two throughout my career and each time my pay wasn’t docked. That could be different this time around.  Another point is that many agencies hold back filling positions throughout the year and use the money saved to purchase end-of-year equipment, supplies, and to pay other expenses. I wasn’t in headquarters or accounting however from my perspective and understanding as a manager this is how the agency paid for many things on their wish list. Especially considering that in most agencies, the lions share — often as high as 85% or more of their budget — is PC and B, payroll, compensation, and benefits.

Since most agencies hold back on staffing at the beginning of the fiscal year they may be able to weather the storm and hopefully there will be minimal impact within your agency.  Only time will tell. According to FactCheck.org, “The federal government will spend about $3.55 trillion this year, so $85 billion (in cuts) amounts to about 2.4 percent of all federal spending. But that’s misleading, because large parts of the federal budget are exempt from the sequester cuts — including such “mandatory” programs as Medicaid, Social Security, welfare and food stamps. The sequester cuts are split between defense and nondefense spending. They include cuts to discretionary defense spending (such as weapons purchases and base operations, but not military personnel) and to both discretionary and nondiscretionary domestic programs (everything from airport security to education aid to research grants). Cuts to those programs will be much deeper than 2.3 percent.”

Congress knows that they must address the entitlement and healthcare issues to fend off a budget crisis in the next few years and the sooner they get realistic about their options and alternatives the less impact we will all feel. The longer they hold off making meaningful tax and entitlement reforms the worse off we will all be.

Unlike many state governments the federal government has done its part to reduce employee retirement costs, one of the largest budget items on most lists, and the States should follow suit. They enacted FERS reforms in the 1980s substantially decreasing defined benefit plan payouts and converting to a mix of defined benefit and defined contribution plans utilizing the THRIFT Savings program.  They also recently increased FERS contributions for new employees.

Change is always disconcerting especially when you really don’t know what to expect.  The best defense is to be prepared as much as possible for the inevitable budget cutting coming to agencies and departments everywhere.  This applies to employees and retirees alike. Have a sufficient emergency fund set aside and contingency plans to handle a more austere life for awhile. Some agencies are considering furloughs of one day a week for 20 weeks, some longer.  Start economizing now, making sure your emergency fund is sufficient and that you have what you need to get through what may surly be coming your way. 

Employees planning on retiring soon should be prepared to live on less than their total estimated annuity since they may have to live with interium checks for extended periods.  Stock up on non perishable food supplies that are on sale and look for sales and ways to save wherever you can. It may not be easy but if you start now it will help to lesson your burden if the proposed cuts are eventually implemented. 

Recent Forum Host Articles:

• Maui is calling Me – Taking a Winter Break by Nancy Holston
• A Roth IRA’s many Benefits by Paul Risser
• TSP Annual Statements and Highlights by Dennis Damp
• 1099R Statements, Replacement Copies, & Upcoming Changes by Dennis Damp
• IRA Contribution Limits Rise for 2013 by Paul Risser
• TSP Roth Conversion Update by Dennis Damp

Request a FREE Retirement Benefits Summary & Analysis from a local adviser. A sample analysis is available for your review. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections. This service is not affiliated with www.federalretirement.net.

Learn more about your benefits, employment, and financial planning issues on our site and visit our Blog frequently at  https://fedretire.net to read all forum articles.

Visit our other informative sites

• Federal Government Jobs & Career Center
• FREE Federal Employee’s Retirement Planning Guide
  • Federal Retiree Job Opportunities
  • Federal Employee & Retiree BLOG
• Federal Employee’s Career Development & IDP Center
• Post Office Jobs & Career Center
• Job Search – All Sectors
• Environmental Health & Safety Jobs Center
• Nuclear Jobs & Careers – High Paying Jobs
• Stolen Car Plates & Recovery Guide
• Take Charge of Your Federal Career
• The Book of U.S. Government Jobs

• 2013 Excel Leave Chart (target 2013 retirement dates and determine exact leave balances for each date)
• How to be Emotionally and Physically Prepared When You Retire
• How to be Financially Prepared When You Retire
• Master Retiree Contact List (Important contact numbers and information)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice. Our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

Comments (0)|  Print This Post

Posted on Saturday, 9th March 2013 by Nancy Holston

Those days when I loved going out and playing in the snow are long gone.  I think they disappeared when I got rid of my skis in the 80’s. I do like watching the cardinals eating at the feeders in the trees after winter snow storm, but after about a month of that and temperatures hovering around the freezing mark or lower, well I’m ready for warm weather.  But knowing that spring and warmer temperatures are still more than a couple of months away draws me to flight or cruise deals that will take me someplace warm. Maui in February is the perfect trip given that I love whale watching, snorkeling, watching the surf and sitting under the palms on the beach.

Resorts are great if you’re the type of person who wants to have activities available all day.  Resorts are also a great place if you don’t plan to cook at all during your vacation.  For my break, I am spending a week at a resort on Oahu with family and friends before we all head to Maui for a week. After being at the pool with 30 or more kids during the day, spending a ton on eating out and nights at the clubs enjoying music and Mai Tai’s we’ll be looking for some quieter time when we land on Maui.

This visit to Maui, I opted to look for a vacation home to rent for my winter break.  Finding a vacation home rental is easy; selecting one is the hard part.  You can use one of several vacation home web sites or any local real estate office that manages vacation rentals with a web search.  It can be frustrating though since the smaller homes that are reasonably priced are the first to go.  Of course planning far in advance can help you get a great deal.  This time, with some help, I was guided to local owners who manage their own properties.  I found a gem, perfect for 4 people with 2 private bedrooms and baths near Lahaina. The West Maui Lodging offers nine distinct options for travelers all managed by owner Jan Hendrix.  She also happily shares a wealth of information for your trip including planning your island activities.

I am so excited about staying in a house on the hill near Lahaina to call home for a week.  We’ll be close to the action of Lahaina but enjoy the privacy of a home and what it offers.  We can probably whale watch from the Lanai first thing in the morning while enjoying a coffee and in the evening watching the sunset with a Mai Tai. We will be able to enjoy breakfast every morning in the Palm House and evening meals rather than eating out.  We can also relax as long as we like without needing to clear the table for waiting customers. Having a full kitchen and a grill allows us to plan ahead, stop at the store and pick up items to enjoy a meal outside or inside depending on the weather of the day.  Jan provides a list of restaurants in the area, including her favorites and also an idea of costs for her guests.  I plan to try some for lunch while we’re in Lahaina shopping or following a whale watch trip.

I’ve planned some of my favorite things to do and have also picked a couple of new adventures for this winter break. I accomplished this with the help of the owner of my vacation rental who recommended Tom’s Barefoot Tours and a specific customer representative who’s very responsive. With Andreas help at Barefoot we found some great activities that fit what we want to do on Maui.  We’ll be spending a day boating around the island of Lana’i with snorkel and beach stops throughout the trip.  We also will spend our last night on a sunset dinner cruise.  The advantage of having Andreas make our reservations is we will pay for the activities the week prior to our arrival on Maui.  Of course we can still cancel 24 hours prior to any activity for a full refund.  But if you do your own bookings and exploring numerous sites yourself, you may miss an activity that is unique and you’ll also have to pay when you book on line.  I was glad to have been given this tip from Jan when we reserved the Palm House.

Well, that’s my winter break plan.  I need to start packing.  Don’t wait for summer.  Start planning your winter break.  There are lots of deals out there.

• http://www.westmauilodging.com/
• http://www.barefoottours.com/
• http://www.vrbo.com/
• http://www.hawaiibeachrentals.com/
• http://www.homeaway.com/
• http://www.hanaoceanfrontcottages.com/

Recent Forum Host Articles:

• A IRA’s Many Benefits
• TSP Annual Statements and Highlights
• 1099R Statements, Replacement Copies, and Upcoming Changes
• TSP ROTH Conversion Update
• Best Dates to Retire 2012 and 2013

Request a FREE Retirement Benefits Summary Analysis from a local adviser. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections. A sample analysis is available for your review. This service is not affiliated with www.federalretirement.net

Learn more about your benefits,  employment, travel, and financial planning issues on our site and visit our Blog frequently at https://fedretire.net to read all forum articles.

Visit our other informative sites

• Federal Government Jobs & Career Center
• FREE Federal Employee’s Retirement Planning Guide
• Federal Retiree Job Opportunities
• Federal Employee & Retiree BLOG
• Federal Employee’s Career Development & IDP Center
• Post Office Jobs & Career Center
• Job Search – All Sectors
• Environmental Health & Safety Job Center
• Nuclear Jobs and Careers
• Stolen Car Plates & Recovery Guide
• Educational Opportunities
• Take Charge of Your Federal Career (A Career Planning Workbook)
• The Book of U.S. Government Jobs (How to Apply for Federal Jobs)

• 2013 Excel Leave Chart (target 2013 retirement dates and determine exact leave balances for each date)
• How to be Emotionally and Physically Prepared When You Retire
• How to be Financially Prepared When You Retire
• Master Retiree Contact List (Important contact numbers and information)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

The information provided may not cover all aspect of unique or special circumstances. Travel policies and packages are subject to change without notice. To ensure the accuracy of this information, contact travel providers and hotels at the time of your bookings to confirm pricing, itinerary, and all costs. The comments and observations are limited to the author’s personal experience and your results may vary significantly. This article and replies to comments are not intended to substitute for professional travel services. Our reply is time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, Travel

Comments (0)|  Print This Post

Posted on Sunday, 3rd March 2013 by Paul Risser

Why do so many people choose them over traditional IRAs?

The IRA that changed the whole retirement savings perspective. Since the Roth IRA was introduced in 1998, its popularity has soared. It has become a fixture in many retirement planning strategies, because it offers savers so many potential advantages.

The key argument for going Roth can be summed up in a sentence: Paying taxes on your retirement contributions today is better than paying taxes on your retirement savings tomorrow.

Think about it. All other variables aside, would you like to pay more taxes in retirement or less?

What if federal tax rates are higher in the future than they are today? Would you like to see a) your retirement savings taxed at those higher rates tomorrow, when you may have medical bills or other emergency expenses to contend with, or b) have the dollars you are saving for retirement today taxed at possibly lower rates?

Here is a closer look at the trade-off you make when you open and contribute to a Roth IRA – a trade-off many savers are happy to make.

You contribute after-tax dollars. You have already paid federal income tax on the dollars going into the account. But in exchange for paying taxes on your retirement savings contributions today, you could potentially realize great benefits tomorrow.¹

You position the money for tax-deferred growth. Roth IRA earnings aren’t taxed as they grow and compound. If, say, your account grows 6% a year, that growth will be even greater when you factor in compounding. The earlier in life that you open a Roth IRA, the greater compounding potential you have.²

You can arrange tax-free retirement income. Roth IRA earnings can be withdrawn tax-free as long as you are age 59½ or older and have owned the IRA for at least 5 years. (That 5-year clock starts on January 1 of the tax year in which you make your initial Roth IRA contribution.)³

The IRS calls such tax-free withdrawals qualified distributions. They may be made to you, to your estate after you are deceased, and/or to a beneficiary. (If you die before the Roth IRA meets the 5-year rule, your IRA beneficiary will see the IRA earnings taxed until it is met.)⁴

If you withdraw money from a Roth IRA before you reach age 59½, it is called a nonqualified distribution. If you do this, you can still withdraw an amount equivalent to your total IRA contributions to that point tax-free and penalty-free. If you withdraw more than that amount, though, the rest of the withdrawal may be fully taxable and subject to a 10% IRS penalty as well. (If you are younger than 59½ and have owned a Roth IRA for at least 5 years, you are allowed to withdraw 100% of your contributions and up to $10,000 of IRA earnings tax- and penalty-free to buy a principal residence, assuming the buyer has not owned a home within the past 2 years.)^1,3

You never have to make a withdrawal. When you own a traditional IRA, you must start pulling money out of it in your in your seventies. These withdrawals are called Required Minimum Distributions (RMDs), and the amount is calculated for you using an IRS formula. These forced withdrawals saddle some traditional IRA owners with tax problems. In contrast, Roth IRA owners never have to take RMDs. They are never required to take a penny out of their IRAs.¹  

Withdrawals don’t affect taxation of Social Security benefits. If your total taxable income exceeds a certain threshold – $25,000 for single filers, $32,000 for joint filers – then your Social Security benefits may be taxed. (These limits are not adjusted for inflation, incidentally.) An RMD from a traditional IRA represents taxable income, and may push retirees over the threshold – but a qualified distribution from a Roth IRA isn’t taxable income, and doesn’t count toward it.⁵   

You can direct Roth IRA assets into many different kinds of investments. Invest them as aggressively or as conservatively as you wish – but remember to practice diversification. The range of investment choices is often broader than that offered in a typical workplace retirement plan.¹

You can shift dividend-producing investments into a Roth IRA from a taxable account. As dividends are being taxed at higher rates in 2013, keeping dividend-producing stocks out of a taxable account has definite virtues.

You can potentially “stretch” the assets. If an original Roth IRA owner passes away after owning the IRA for at least five years, then its earnings can be withdrawn tax-free by its beneficiaries. (Relevant estate taxes may need to be paid, of course.) If a Roth IRA beneficiary is not a spouse, then other factors come into play: that beneficiary cannot contribute to the inherited Roth IRA, or combine it with an IRA he or she owns. The non-spouse beneficiary can decide to a) receive a distribution of 100% of the inherited Roth IRA assets by December 31st of the fifth year following the year of the IRA owner’s death, or b) receive periodic payments from the IRA over the course of his or her life, an option which may potentially be “stretched” (given proper planning) and extended to subsequent beneficiaries.⁶

You have 16 months to make a Roth IRA contribution for a given tax year. For example, IRA contributions for the 2012 tax year may be made up until April 15, 2013. While April 15 is the annual deadline, many IRA owners who make lump sum contributions for a given tax year make them as soon as that year begins, not in the following year. Making your Roth IRA contributions earlier gives the funds in the account more time to grow and compound with tax deferral.¹

Who can open a Roth IRA? Anyone with earned income (and that includes a minor).¹

How much can you contribute to a Roth IRA annually? The 2013 contribution limit is $5,500, with an additional $1,000 “catch-up” contribution allowed for those 50 and older. (The annual contribution limit is adjusted periodically for inflation.)⁷ 

You can keep making annual Roth IRA contributions all your life. You can’t make annual contributions to a traditional IRA once you reach age 70½.⁷

Does a Roth IRA have any drawbacks? Actually, yes. One, you will generally be hit with a 10% penalty by the IRS if you withdraw Roth IRA funds before age 59½ or you haven’t owned the IRA for at least five years. (This is in addition to the regular income tax you will pay on the funds withdrawn, of course.) Two, you can’t deduct Roth IRA contributions on your 1040 form as you can do with contributions to a traditional IRA or the typical workplace retirement plan. Three, you might not be able to contribute to a Roth IRA as a consequence of your filing status and income; if you earn a great deal of money, you may be able to make only a partial contribution or none at all.^3,7

Rollovers are permitted if you make too much to contribute. Even if your income prevents you from funding a Roth IRA, you can still roll traditional IRA assets into a Roth with the help of a financial professional. While this is a taxable event, you may realize significant long-term financial benefits as a result of it – tax-free retirement income withdrawals, and the potential for some of the Roth IRA assets to pass tax-free to your heirs with further growth and compounding. You also will gain the relief of never having to take an RMD each year.⁸

All this may have you thinking about opening up a Roth IRA or creating one from existing IRA assets. A chat with the financial professional you know and trust will help you evaluate whether a Roth IRA is right for you given your particular tax situation and retirement horizon.

Investment Advisor Representative with and Securities and Investment Advisory Services offered through Transamerica Financial Advisors, Inc. (TFA) member FINRA, SIPC and a Registered Investment Advisor. LD42774-2/12

Paul H. Risser may be reached at 1-866-274-7737, prisser@tfamail.com, or www.risserfinancial.com

Recent Forum Host Articles:

• TSP Annual Statements and Highlights  by Dennis Damp
• 1099R Statements, Replacement Copies, and Upcoming Changes by Dennis Damp
• IRA Contribution Limits for 2013 by Paul Risser
• TSP Roth Conversion Update by Dennis damp
• Making Retirement Savings Last by Paul Risser
• TSP ROTH Conversions, Benefits and Limitations by Dennis Damp

Visit our other informative sites

• Federal Government Jobs & Career Center
• FREE Federal Employee’s Retirement Planning Guide
• Federal Retiree Job Opportunities
• Federal Employee & Retiree BLOG
• Federal Employee’s Career Development & IDP Center
• Post Office Jobs & Career Center
• Job Search – All Sectors
• Environmental Health & Safety Job Center
• Nuclear Jobs and Careers
• Stolen Car Plates & Recovery Guide
• Take Charge of Your Federal Career (A Career Planning Workbook)
• The Book of U.S. Government Jobs (How to Apply for Federal Jobs)

• 2013 Excel Leave Chart (target 2013 retirement dates and determine exact leave balances for each date)
• How to be Emotionally and Physically Prepared When You Retire
• How to be Financially Prepared When You Retire
• Master Retiree Contact List (Important contact numbers and information)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

Investment Advisor Representative with and Securities and Investment Advisory Services offered through Transamerica Financial Advisors, Inc. (TFA) member FINRA, SIPC and a Registered Investment Advisor. LD42774-2/12.

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is not a solicitation or a recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Neither Transamerica Financial Advisors, Inc. (TFA) nor its representatives provide legal, tax nor accounting advice. Persons who provide such advice do so in a capacity other than as a registered representative of TFA.

Citations.

1 – www.kiplinger.com/article/retirement/T046-C006-S001-8-reasons-you-need-a-roth-ira-now.html [4/5/12]

2 – www.nj.com/business/index.ssf/2013/01/biz_brain_are_roth_iras_really.html [1/21/13]

3 – www.smartmoney.com/taxes/income/when-roth-ira-withdrawals-arent-taxfree-1293571638217/ [12/29/10]

4 – www.hrblock.com/free-tax-tips-calculators/tax-help-articles/Retirement-Plans/Early-Withdrawal-Penalties-Traditional-and-Roth-IRAs.html [1/2/13]

5 – www.investmentnews.com/article/20121216/REG/312169988 [12/16/12]

6 – www.investorguide.com/article/11816/understanding-the-tax-ramifications-of-an-inherited-roth-ira/ [1/8/13]

7 – www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits [11/28/12]

8 – www.boston.com/business/personalfinance/articles/2012/05/20/roth_ira_conversion_not_for_everybody/ [5/20/12]

Posted in ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

Comments (0)|  Print This Post