Planning for retirement should be an event that starts as early as possible in life. If you want to get some assistance in the matter, to get the best out of your money, than a consultant that specializes in retirement planning, may be the best choice for you.
A retirement planning consultant should first of all be able to advise you, as to the when and where you should invest your funds, in order to get the best returns. He should be able to pinpoint which ones out of all the options available in the investment market, is the best one for you.
Apart from this a consultant should also explain to you what the various adopted strategies might be. Just reading through a brochure or a leaflet is not enough for you to be able to make the best choice, for the money that will determine your future lifestyle. A consultant is exactly what you need.
When choosing a consultant, I would suggest that you always have a meeting with him beforehand, and talk to him to see how he feels. Some consultants even combine legal advice with financial planning as well as investment advice. You should always choose the individual with whom you can talk freely, and with whom you feel comfortable.
Don’t be fooled however, for a consultant is not there to do all the work for you. He’s there only to make your retirement plans a reality. You should always feel in control, and create your retirement plan just as you want it to be.
Planning for retirement does not necessarily have to be a complicated matter. Try writing down some basic facts like income, your office plan savings amount, as well as other investments you may already have. Think about what you would like your retirement life to be like, and discuss all your thoughts and plans with your advisor.
If you fail to plan, you are planning to fail. If you cannot do this by yourself, seek the assistance of a professional, but don’t just let it sit there, without doing anything.
Reference: http://projectstocks.com/2008/06/what-to-look-for-in-retirement-planning-consultants/
Tuesday, June 9, 2009
SOLO IRAs As A Retirement Option
We are living in a time of financial turmoil. If you want to take control of your future and your savings, then why not consider investing in a Solo IRA. This plan like the 401k plan, will also offer you immense tax savings as well as allowing you to take control of your future.
The most common type of IRA is the traditional one, which allows you to contribute up to a maximum of $ 5000 yearly. Apart from this, a traditional IRA also allows you to contribute from pre-taxed money if you don’t have an employer offered plan.
A Rollover IRA is created in the case that you loose your job or when your employer is taken over by another company. This plan will save you huge money in penalties that you would have to other wise pay, to withdraw funds from one plan to put them in another.
Finally a Roth IRA the money is taxed upon entrance into the plan, as opposed to being taxed upon withdrawal at retirement age. This gives rise to different rules, and so it’s best to consult your accountant or advisor, in case you decide to go for this option.
An IRA gives you the flexibility of making your own choices, as to where you want your money to be invested. You’re the boss! Profits received will be directly credited to the plan, and are not taxed at any point. With an IRA you may also choose to invest in real estate, and with the current rock bottom market prices, you will soon be building quite a portfolio.
With this plan, you are in control. You get to decide where the money goes, and how much you want to risk for your future.
Reference: http://projectstocks.com/2008/10/how-investing-in-solo-iras-can-protect-your-future/
The most common type of IRA is the traditional one, which allows you to contribute up to a maximum of $ 5000 yearly. Apart from this, a traditional IRA also allows you to contribute from pre-taxed money if you don’t have an employer offered plan.
A Rollover IRA is created in the case that you loose your job or when your employer is taken over by another company. This plan will save you huge money in penalties that you would have to other wise pay, to withdraw funds from one plan to put them in another.
Finally a Roth IRA the money is taxed upon entrance into the plan, as opposed to being taxed upon withdrawal at retirement age. This gives rise to different rules, and so it’s best to consult your accountant or advisor, in case you decide to go for this option.
An IRA gives you the flexibility of making your own choices, as to where you want your money to be invested. You’re the boss! Profits received will be directly credited to the plan, and are not taxed at any point. With an IRA you may also choose to invest in real estate, and with the current rock bottom market prices, you will soon be building quite a portfolio.
With this plan, you are in control. You get to decide where the money goes, and how much you want to risk for your future.
Reference: http://projectstocks.com/2008/10/how-investing-in-solo-iras-can-protect-your-future/
Plan For Your Future With Retirement Planning Services
Efficient retirement planning is certainly an issue that is on top of ever relatively older employee. Given that today we cannot rely solely on the funds given to us by social services, we all have to think and find ways of planning for our retirement.
There are nowadays various options available on the market, aiming at making our money grow bigger, faster. If however you are not sure, what the best option would be for your circumstances, you may try and ask for proper retirement planning services.
Some individuals like to ask for recommendations from friends of family. However even though these may be trustworthy, there is still the risk that they will not give you good advice, simply because they are not professionals. A professional financial advisor on the other hand, will talk to you to see what your plans and dreams are, and then help you to make these dreams come true. This will make a great difference for you and your family in the future, since it will mean more comfortable living.
The first thing a professional will do is assess your financial condition as it is presently. He will consider your age and your income, to come up with the proper investment option.
This advisor will also ask you about your present income level, as well as other plans that are generating you income, or the possibility of promotions or other sources of income. The type of lifestyle you will expect when you retire is another important factor that you will be discussing.
If you want good advice, then make sure you talk comfortably and give the advisor all the details he asks for. Finally always do some research yourself, on plans and investment options. These people are there to give you advice, but some homework from your end is always best.
Reference: http://projectstocks.com/2008/06/secure-your-future-with-retirement-planning-services/
There are nowadays various options available on the market, aiming at making our money grow bigger, faster. If however you are not sure, what the best option would be for your circumstances, you may try and ask for proper retirement planning services.
Some individuals like to ask for recommendations from friends of family. However even though these may be trustworthy, there is still the risk that they will not give you good advice, simply because they are not professionals. A professional financial advisor on the other hand, will talk to you to see what your plans and dreams are, and then help you to make these dreams come true. This will make a great difference for you and your family in the future, since it will mean more comfortable living.
The first thing a professional will do is assess your financial condition as it is presently. He will consider your age and your income, to come up with the proper investment option.
This advisor will also ask you about your present income level, as well as other plans that are generating you income, or the possibility of promotions or other sources of income. The type of lifestyle you will expect when you retire is another important factor that you will be discussing.
If you want good advice, then make sure you talk comfortably and give the advisor all the details he asks for. Finally always do some research yourself, on plans and investment options. These people are there to give you advice, but some homework from your end is always best.
Reference: http://projectstocks.com/2008/06/secure-your-future-with-retirement-planning-services/
Help Your Money Grow For Your Retirement
Even though you mind be young, and retirement age seems a whole lifetime away you still have to start saving and investing now.
Unfortunately with the present economic situation and the rise in the cost of living, saving and investing for your retirement has become more difficult. Your company might offer you a retirement plan in which you can save monthly from your salary. But are these plans safe? After recent events people are not so confident anymore. Don’t worry however; you still have other options available.
Why not invest in the stock market? You may choose between mutual funds, bonds, stocks and shares and other money market account. Even though these don’t have the retirement label attached to them, it doesn’t mean they are not worthwhile. You just need to be patient, choose the best option and let your money grow over time without withdrawing.
Depending on social security is a big mistake. You should take care of your financial future yourself by starting saving now, before it’s too late. Don’t count on inheritances that might never come!
You should examine how able you are to take risk, and what investment choices best suit your risk profile. There are so many investments which however finally all funnel down into three categories, which are cautious, medium, or aggressive investment options.
If you have a high risk tolerance level, than you can go for the most aggressive and volatile investments such as high risk shares. Normally we say that the younger you are, the larger the risk you can take, when it comes to retirement investments, since you have a long way to go.
Once you determine your risk tolerance level, you should move to researching the investments that you want to go for. If you do not feel sure about this, then don’t forget it is money you’re dealing with at the end of the day, so better seek the services of a qualified advisor, who will be able to guide you along the way.
Reference: http://projectstocks.com/2009/06/investing-in-your-retirement-future-let-your-money-grow/
Unfortunately with the present economic situation and the rise in the cost of living, saving and investing for your retirement has become more difficult. Your company might offer you a retirement plan in which you can save monthly from your salary. But are these plans safe? After recent events people are not so confident anymore. Don’t worry however; you still have other options available.
Why not invest in the stock market? You may choose between mutual funds, bonds, stocks and shares and other money market account. Even though these don’t have the retirement label attached to them, it doesn’t mean they are not worthwhile. You just need to be patient, choose the best option and let your money grow over time without withdrawing.
Depending on social security is a big mistake. You should take care of your financial future yourself by starting saving now, before it’s too late. Don’t count on inheritances that might never come!
You should examine how able you are to take risk, and what investment choices best suit your risk profile. There are so many investments which however finally all funnel down into three categories, which are cautious, medium, or aggressive investment options.
If you have a high risk tolerance level, than you can go for the most aggressive and volatile investments such as high risk shares. Normally we say that the younger you are, the larger the risk you can take, when it comes to retirement investments, since you have a long way to go.
Once you determine your risk tolerance level, you should move to researching the investments that you want to go for. If you do not feel sure about this, then don’t forget it is money you’re dealing with at the end of the day, so better seek the services of a qualified advisor, who will be able to guide you along the way.
Reference: http://projectstocks.com/2009/06/investing-in-your-retirement-future-let-your-money-grow/
401k Plan Facts
Within the US there are a number of saving plans that help individuals to save money for their retirement. The 401k plan, which is named after the section in the Internal Revenue Code that regulates it, is one of the popular plans, which are provided by employers for their employees.
Within this plan an employee can save an amount of money monthly from his salary, which amount can be then matched by the employer. These contributions are made from pre-taxed income, therefore saving the contributor from lots of tax money. These funds will only be taxed on the way out of the plan, when the contributor reaches retirement age.
This plan will also give the opportunity to your employer to contribute from hi side, up to 50% of your monthly payment, thus matching your savings amount.
These 401k plans give the employer the chance to decide on behalf of the employee, where the saved funds will be going; whether they will be invested in stocks, bonds or other investment choices that the employer and his advisors may deem fit.
As regards regulation, you may find it interesting to know that this plan is regulated by a section within the US Labor department, which is called the Employment Benefits Security Administration. Employees who work for the government may not contribute funds in the 401k plan.
For these people as well as self employed individuals, other similar retirement plans are available. Even for employees of private companies, other options are available that will give the employee more flexibility, in that they can control where the money is invested.
As for withdrawals out of the 401k plan, it is very important to understand that no withdrawals are allowed before retirement age. This plan also does not allow the funds to be paid out or signed over to another person, as the funds are regulated by the United States pension laws.
This plan is definitely a good choice; however one should always get as much information as possible before making his decision.
Reference: http://projectstocks.com/2008/10/401k-retirement-plan-facts-you-might-not-be-aware-of/
Within this plan an employee can save an amount of money monthly from his salary, which amount can be then matched by the employer. These contributions are made from pre-taxed income, therefore saving the contributor from lots of tax money. These funds will only be taxed on the way out of the plan, when the contributor reaches retirement age.
This plan will also give the opportunity to your employer to contribute from hi side, up to 50% of your monthly payment, thus matching your savings amount.
These 401k plans give the employer the chance to decide on behalf of the employee, where the saved funds will be going; whether they will be invested in stocks, bonds or other investment choices that the employer and his advisors may deem fit.
As regards regulation, you may find it interesting to know that this plan is regulated by a section within the US Labor department, which is called the Employment Benefits Security Administration. Employees who work for the government may not contribute funds in the 401k plan.
For these people as well as self employed individuals, other similar retirement plans are available. Even for employees of private companies, other options are available that will give the employee more flexibility, in that they can control where the money is invested.
As for withdrawals out of the 401k plan, it is very important to understand that no withdrawals are allowed before retirement age. This plan also does not allow the funds to be paid out or signed over to another person, as the funds are regulated by the United States pension laws.
This plan is definitely a good choice; however one should always get as much information as possible before making his decision.
Reference: http://projectstocks.com/2008/10/401k-retirement-plan-facts-you-might-not-be-aware-of/
Wednesday, June 3, 2009
Your retirement savings options
If you are looking for ways and means to invest money for your future, you will be glad to know that there are many options for you to choose from. The options can be narrowed down to the two most important savings vehicles, being the IRA and the 401k plan. These two accounts can be then divided in different types. The rules for both plans differ.
The 401k plan is a retirement plan which is employer based, and which carries the name of the tax code which regulates it. When contributing funds to this plan, you will be doing so from pre-tax income, and therefore saving lots of tax money.
The funds saved are then diversified into various stock options and funds, which you would have chosen beforehand. Your employer in this case will also have the option to match your savings amount, or a part of it. The funds will then be taxed when the times comes to withdraw, at pension age. At this point you will probably be in a lower tax bracket, thus saving lots of money in taxes.
IRAs are retirement accounts devised for individuals to invest on their own, as opposed to the 401k plan which is tied to your employer. In this plan you may invest up to $5000 yearly, and there is no way in which you can get the funds out before your retirement age. As opposed to the 401k plan, here the money is taxed on entry into the account.
Both accounts can help you maximize your retirement savings, especially if you decide to go for both, and balancing them out to reduce your taxes.
Reference: http://projectstocks.com/2009/06/how-to-invest-for-retirement/
The 401k plan is a retirement plan which is employer based, and which carries the name of the tax code which regulates it. When contributing funds to this plan, you will be doing so from pre-tax income, and therefore saving lots of tax money.
The funds saved are then diversified into various stock options and funds, which you would have chosen beforehand. Your employer in this case will also have the option to match your savings amount, or a part of it. The funds will then be taxed when the times comes to withdraw, at pension age. At this point you will probably be in a lower tax bracket, thus saving lots of money in taxes.
IRAs are retirement accounts devised for individuals to invest on their own, as opposed to the 401k plan which is tied to your employer. In this plan you may invest up to $5000 yearly, and there is no way in which you can get the funds out before your retirement age. As opposed to the 401k plan, here the money is taxed on entry into the account.
Both accounts can help you maximize your retirement savings, especially if you decide to go for both, and balancing them out to reduce your taxes.
Reference: http://projectstocks.com/2009/06/how-to-invest-for-retirement/
Thursday, May 28, 2009
Retirement Information for Baby Boomers
Retirement planning should be an important consideration for everyone, whether they are years away from their retirement and especially if retirement is just around the corner.
If financial topics make you feel uneasy, you still should put them on top of your learning list. Here are some easy to understand tips, regarding retirement especially for the baby boomers.
Tip #1
You should start by taking note of your current expenses, and think whether after your retirement you will want to live like you always have. If you think of retirement as travel, an expensive car and lots of days outdoors, you have to consider the expense that comes with this lifestyle. A retirement calculator is the perfect tool to help you assess this.
Tip #2
Make sure you know what benefits you will get from Social Security. This would normally sum up to be around 40% of your income before retirement. You should be receiving three statements yearly, which include a summary of the benefits you should expect when you retire.
Tip #3
Gather as much information as you can about employee benefits. Remember that information is power, and this will determine your future.
Tip #4
You should make it a point to invest in a 401k plan. This is an account that will save you lots of tax money, and which will also attract a contribution for your retirement from your employer.
Tip #5
If you do contribute funds into a plan, then no matter how bad your financial situation gets, do not make any withdrawals. This will result in you falling short, and not having the estimated sum of money when you retire.
Reference: http://freeretirementplanningadvice.com/home-and-family/5-baby-boomer-retirement-tips/
If financial topics make you feel uneasy, you still should put them on top of your learning list. Here are some easy to understand tips, regarding retirement especially for the baby boomers.
Tip #1
You should start by taking note of your current expenses, and think whether after your retirement you will want to live like you always have. If you think of retirement as travel, an expensive car and lots of days outdoors, you have to consider the expense that comes with this lifestyle. A retirement calculator is the perfect tool to help you assess this.
Tip #2
Make sure you know what benefits you will get from Social Security. This would normally sum up to be around 40% of your income before retirement. You should be receiving three statements yearly, which include a summary of the benefits you should expect when you retire.
Tip #3
Gather as much information as you can about employee benefits. Remember that information is power, and this will determine your future.
Tip #4
You should make it a point to invest in a 401k plan. This is an account that will save you lots of tax money, and which will also attract a contribution for your retirement from your employer.
Tip #5
If you do contribute funds into a plan, then no matter how bad your financial situation gets, do not make any withdrawals. This will result in you falling short, and not having the estimated sum of money when you retire.
Reference: http://freeretirementplanningadvice.com/home-and-family/5-baby-boomer-retirement-tips/
Wednesday, May 27, 2009
Fact or Fiction?
When it comes to retirement, even though there is nowadays plenty of information available everywhere you look, people somehow still come to believe in retirement myths, as the truth.
We are therefore going to cover in this article the most publicised myths that people believe in.
Myth #1
Retirement starts after your last day at work. This is a false statement since retirement should be seen as a new phase in one’s life. Like every change, this takes some accustoming to, and it will take you as long as twelve months to adjust and change your lifestyle.
Myth #2
If you think or rather hope that someone will be generous enough to take care of you when you retire, you might want to think again. Social Security will hardly pay your monthly bills, and if you are thinking that your children will take care of you, you should consider that life has changed, and this is increasingly difficult.
Myth #3
The next myth refers to monthly expenses, since most individuals believe that after retirement their costs will be low. You should consider the drying out of Social Security funding, and the fact that the cost of goods continues to rise. Considering that we can expect to live more than 20 years after we retire, this might be a recipe for disaster.
Myth #4
Some people believe that retirement is easy- not true. This period can even give rise to depression since after their retirement, people find out that all leisure and relaxation makes for quite a boring life.
Myth #5
Retirees think that retirement is great since they will get to be with their wife all day. This in reality needs some adjusting to, since couples usually don’t spend more than 20% of their time together. This is why in analysing divorce rates we find that the highest is for couples over 55 years of age.
Reference http://freeretirementplanningadvice.com/elderly-care/busting-the-top-retirement-myths/
We are therefore going to cover in this article the most publicised myths that people believe in.
Myth #1
Retirement starts after your last day at work. This is a false statement since retirement should be seen as a new phase in one’s life. Like every change, this takes some accustoming to, and it will take you as long as twelve months to adjust and change your lifestyle.
Myth #2
If you think or rather hope that someone will be generous enough to take care of you when you retire, you might want to think again. Social Security will hardly pay your monthly bills, and if you are thinking that your children will take care of you, you should consider that life has changed, and this is increasingly difficult.
Myth #3
The next myth refers to monthly expenses, since most individuals believe that after retirement their costs will be low. You should consider the drying out of Social Security funding, and the fact that the cost of goods continues to rise. Considering that we can expect to live more than 20 years after we retire, this might be a recipe for disaster.
Myth #4
Some people believe that retirement is easy- not true. This period can even give rise to depression since after their retirement, people find out that all leisure and relaxation makes for quite a boring life.
Myth #5
Retirees think that retirement is great since they will get to be with their wife all day. This in reality needs some adjusting to, since couples usually don’t spend more than 20% of their time together. This is why in analysing divorce rates we find that the highest is for couples over 55 years of age.
Reference http://freeretirementplanningadvice.com/elderly-care/busting-the-top-retirement-myths/
Monday, May 25, 2009
Retirement Plan Fees
The American government is currently working hard to solve the lots of issues related to retirement plans and their regulations.
One of the issues being worked upon is fee disclosures to participants as well as plan sponsors. Many were expecting a regulation for the 408b plans that requires the plan provider to disclose all the fees for the sponsors. This however has not been established yet. The issue is still to be tackled well and something is still expected as regards this matter.
In fact, the two congress houses wish for a proper legislation governing fee disclosure. The Special Committee on Aging has presented the Defined Contribution Fee Disclosure Act 2009. This act would compel plan sponsors of defined contribution plans, to disclose the entire plan fees to the participants.
This legislation should make it easier for plan sponsors to negotiate fees with their participants. Participants on the other hand would be in a better position since they will know exactly what the cost of their plan is.
Of the entire proposed legislation package, the only part that did not come to the final stage was the changes to Section C of the Form 5500. If a plan has at least 100 participants, the plan needs to report implicit returns. The thing is that plan sponsors are having a hard time getting this information, in the case that his service provider did not provide it. This is still a bit of a gray area, where lot of time is used up in filling in this form, without any significant end result.
As for the advisors, it is believed that these new regulations that will stiffen the environment may encourage a trend in the industry. This trend assumes that with tightened regulations retirement plan advisors will shift to being fee-based.
Reference: http://www.planadviser.com/magazine/article.php/4242
One of the issues being worked upon is fee disclosures to participants as well as plan sponsors. Many were expecting a regulation for the 408b plans that requires the plan provider to disclose all the fees for the sponsors. This however has not been established yet. The issue is still to be tackled well and something is still expected as regards this matter.
In fact, the two congress houses wish for a proper legislation governing fee disclosure. The Special Committee on Aging has presented the Defined Contribution Fee Disclosure Act 2009. This act would compel plan sponsors of defined contribution plans, to disclose the entire plan fees to the participants.
This legislation should make it easier for plan sponsors to negotiate fees with their participants. Participants on the other hand would be in a better position since they will know exactly what the cost of their plan is.
Of the entire proposed legislation package, the only part that did not come to the final stage was the changes to Section C of the Form 5500. If a plan has at least 100 participants, the plan needs to report implicit returns. The thing is that plan sponsors are having a hard time getting this information, in the case that his service provider did not provide it. This is still a bit of a gray area, where lot of time is used up in filling in this form, without any significant end result.
As for the advisors, it is believed that these new regulations that will stiffen the environment may encourage a trend in the industry. This trend assumes that with tightened regulations retirement plan advisors will shift to being fee-based.
Reference: http://www.planadviser.com/magazine/article.php/4242
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