by: Drew Miles
Reality Check - How many years do you have left until you're 65?
Whether retirement is just around the corner or have many more years to go, setting yourself up for retirement is key and must start now. Do the math. If you want $10,000 and you?re investing at 5 percent, you need $3,765. If you invest at 10 percent, you?ll need $1,400. It?s great if you have a savings account (you?re ahead of most folks), but if that?s the highest form of investing you?re doing?we have a lot of work to do.
It?s not Magic?Compounded Interest
In my 30s, I started saving
$50 each month. As I earned more, I saved more. If you invest in a Roth/IRA, your money grows tax-free.
Example: If you invest $1 for 40 years at?
1 percent = $1.49
10 percent = $45.26
20 percent = $1,470
Make your money work for you.
Get a plan down for saving and stick to it. I was trained in trading commodities. To do so, you have to eliminate/minimize
your emotion. You go in with a plan and stick with the plan, meaning you invest only under certain circumstances and if it goes down more than a certain amount, you take your loss and drop out. If your trading system loses 80 percent of the time, is this a good system? Perhaps. If you only lose $0.01 (when you lose), and you make $0.05 when you win?this is a good trading system because the winnings outweigh the losses. You can make 20 percent on some investments that are 100 percent secured (by the United States government, such as tax deeds).
About The Author
Drew Miles
I finished my four-year undergraduate program in 3 years and graduated Cum laude as well as a member of Phi Beta Kappa Fraternity. I majored in Political Science with a minor in Sociology and completed my first legal internship. Hofstra University School of Law, Long Island, New York, 1987. During my three years of law school, I completed an internship with a New York Supreme Court Justice and second legal internship with a law firm and also began investing in real estate. Business: Immediately upon graduating law school and passing the bar exam, I opened my own law practice. From 1988 to 2001, I practiced with my partner under the name Miles and Gillard, where I concentrated in the area of real estate and business law. During that time, I had the privilege of working with thousands of clients in various aspects of their business and investing life. Find Out More: http://www.irabusinesssystem.com/
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Know How To Take Your Lumps
Know How To Take Your Lumps
by: Ken Morris
If you are about to retire or change jobs, or if your employer is terminating the company retirement plan, you may be eligible to receive a "lump sum distribution" as defined in the Internal Revenue Code.
Such a distribution may be substantial and may represent the cornerstone of your retirement security.
So it is important to consider your options carefully before making a decision regarding distributions.
Basically, you are faced with two main options.
Should you take a direct distribution and pay your taxes now?
Or should you roll your distribution over into a traditional Individual Retirement Account (IRA)?
If you decide not to roll the distribution over into a traditional IRA, you must pay tax on the distribution in the year you receive it. You will, of course, be able to invest the remainder as you please.
The main benefit of paying taxes on your...
Ira > Know How To Take Your Lumps
How To Transfer A Retirement Account
How To Transfer A Retirement Account
by: Jakob Jelling
Make sure you know where you intend on moving your money in advance!
As you probably know, an individual retirement account requires that you decide where your money is going to be invested in order to work with the retirement account.
Essentially this is called a "custodian" for your investments.
You should generally chose a safe custodian - some of the most common ones are mutual funds, savings accounts, and bonds.
While you should definitely be careful as to which custodian you choose for your retirement account, don't worry!
You are not stuck with the same investment until you retire.
However, unlike a normal investment, you should keep in mind that you are only allowed to transfer or "roll over" your retirement account once a year.
Also, there are some very specific rules that you need to follow. It is generally a good idea to find...
Ira > How To Transfer A Retirement Account
Taking Full Advantage Of Your 401(k) ? How Well Do You Know Your Plan.
Taking Full Advantage Of Your 401(k) ? How Well Do You Know Your Plan.
by: Simon Fox
Taking full advantage of your 401(k) plan today can help you achieve financial goals sooner, and provide enough income for a comfortable retirement. For most working people, Social Security checks alone will not be enough to maintain the standard of living they are used to, once they are no longer working. If you are lucky, your employer offers a 401(k) plan which, if used wisely and to the fullest advantage, can provide you with additional income for your golden years.
401(k) plans differ greatly depending on the employer who sets the rules. The only way to get the most out of the plan is to get to know it and make educated choices.
Things you should know:
- What is the maximum percentage of your salary you are able to contribute (see also 401(k)contribution limits set by IRS)?
- Is your employer matching the contributions? If yes, what is...
Taking Full Advantage Of Your 401(k) ? How Well Do You Know Your Plan.
Ira > Taking Full Advantage Of Your 401(k) ? How Well Do You Know Your Plan.
Traditional IRAs: Still A Good Idea for 2006
Traditional IRAs: Still A Good Idea for 2006
by: Ken Morris
Mark Twain once said, "The rumors of my death have been greatly exaggerated." Like Mr. Twain's rumored demise, the notion that the traditional Individual Retirement Account (IRA) is no longer a useful part of a financial plan has been greatly exaggerated. Contributions to a traditional IRA continue to be a viable financial and retirement planning tool despite non-deductibility for some individuals.
All you need to make a traditional IRA contribution are earnings as an employee or as a self-employed person. The amount that can be contributed for 2006 is the lesser of $4,000 ($5,000 if you have attained age 50) or your earnings from your work. There is no minimum age for making a traditional IRA contribution for tax purposes. If a 16 year old works for the summer, makes $4,000 and blows it all at the mall, the tax code permits Mom, Dad or whomever to give him/her $4,000 to contribute...
Traditional IRAs: Still A Good Idea for 2006
Ira > Traditional IRAs: Still A Good Idea for 2006