When you retire, you’re frequently informed to roll-over your company retirement account - such as your 401(k) - into an IRA or into another company’s qualified plan if you decide to continue working. Sometimes, that is not the best advice for tax savings. Nonetheless, what ever you are doing - don’t rollover any of your company’s stock you own within [...]
Categories: tax savings Tags: employer stock, net unrealized appreciation, NUA
One of the challenges many older investors encounter when retiring is controlling their cash flow to provide appropriate retirement earnings. Unfortunately, common stock dividends come with no assurances as they can change. Companies are not required to pay them, and companies that do can suspend their dividends anytime as their business requirements dictate. Since there are no guarantees for dividends, [...]
Categories: retiring Tags: dividend paying stocks, retiring on dividend income
A new manager at your mutual fund can provide constructive adjustments - and also a bigger tax bill - eradicating any hope of tax savings. Mutual fund manager tenure is shrinking, perhaps due to tighter industry competition: A recent study showed that the average mutual fund manager had been on the job for 4.44 years, down from 5.26 years when [...]
Categories: tax savings Tags: mutual fund manager tenure, new portfolio manager
In financial downturns everyone has a tendency to tighten their own budgets and that includes retired people. Individuals observe they are all of a sudden saving money. In the 2009 economic downturn, the US financial savings rate jumped to 6% when it has been near 0% in the several years prior. Actually you might find you’re actually end up with [...]
Categories: retirement money Tags: index-linked CDs, indexed annuities
Life may serve up some hard times, especially the need for cash when we don't have it. If you’re working, though, you might consider taking money from a 401k or IRA to meet immediate needs. The intent of these funds was of course to supply a source of cash to support retirement and for income tax relief during the contribution [...]
Categories: income tax relief Tags:
Both earnings within and withdrawals from a Roth IRA are tax free therefore providing maximum tax relief. This remains correct for your Roth beneficiary even though he’ll need to make annual minimum required distributions. If that beneficiary is extremely young, the tax-free account growth provides a considerable benefit of a Roth IRA and massive tax savings of his life time. [...]
Categories: tax relief Tags: roth conversion
If you're like other people in America, you may be having difficulty saving for your retirement and want sound retirement advice. Even with the tax deduction, workers that make less than $40,000 - $50,000 per year might be strapped to find room in their budgets for a qualified plan contribution (e.g. 401k plan), especially if they have dependents. Once the [...]
Categories: retirement advice Tags: 401k, IRA, retirement account, retirement plan, saving for your retirement
More Americans are purchasing real estate and retiring outside the United States than in previous years. So why do theyn retire abroad? Here are the main advantages retiring outside the US: 1. Retiring abroad is not that far and direct flights make trips back "home" easy If you have your eye on Central America, Mexico or Canada, you’re not that [...]
Categories: retiring Tags: retiring abroad
Beyond fees and transaction costs, most all investments are subject to taxation - and this represents more expenses for you that can reduce your net return. Let’s see what’s taxed and when. By understanding how different investments are taxed, you are able to do tax planning and thereby maintain money that others pay to IRS. The federal government taxes you [...]
Categories: tax planning Tags: capital gains, income tax rates, mutual funds, ordinary income
One significant source of income tax relief for taxpayers in the lowest 2 tax brackets is the elimination of both the long-term capital gains tax and qualifying dividend* tax through 2012. This income tax relief pertains to the 10% and 15% tax brackets in which numerous retired people find themselves. Long term capital gains tax - to which the income [...]
Categories: income tax relief Tags: 0% tax rate, capital gains, qualifying dividends
|
|
|
|
|
|