Annuities Explained

Annuities are contracts between individual buyers and insurance companies or mutual fund companies. The concept is straightforward and easily understood. The annuity buyer pays the company a sum of money and the company agrees to pay it back often at a later time. This can provide a significant benefit for the purchaser by allowing him to defer income from his peak earning years to a later date when he is retired and earning less. It also can reduce the buyer's tax burden and make his reti...
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What is the Right Amount to Save for Retirement?

There are plenty of calculators out there so I won’t bother with that, but the question to how much you need to save for retirement needs to be in your thought process. Saving for retirement is difficult when it matters most. Many people reading this are in there 20’s, 30’s and 40’s. The earlier you start to save the more you benefit from compounding interest. If you start saving around five thousand dollars a year and put it into an index fund returning about 8% in your early twenties, you will...
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Taking an IRA Distribution

The rules for taking an IRA distribution from an individually owned IRA depend upon the type of account. There are two types of individually owned IRAs – traditional and Roth. The treatment of traditional and Roth IRAs differs significantly. For both types of accounts, distribution is governed by the age of the participant as well as the reason for the distribution. If you have a traditional IRA, your contributions might be tax deductible but your distribution may be taxable. To avoid tax whe...
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403b Plans

The 403b retirement plans is a kind of retirement plan that is specially made for tax-exempt organizations, religious ministers, and workers of public schools. Lots of people would compare this to the 401k plans, which is given by business and corporations to their workers. People who wish to get the 403 plan normally have a few choices to go for when it comes to the kind of assets that their employees can endow into their personal accounts. This includes the following: Tax Deferred An...
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How to Set Up a SEP IRA

Simplified Employee Pension Individual Retirement Account or SEP IRA is a retirement plan under IRA. It is intended to benefit the self-employed individuals and the small business owners. This includes sole proprietorships, partnerships, corporations, and LLCs. When you own a business, SEP IRAs should be established separately by you and any eligible employee. The employer’s contributions are then made into each eligible employee’s retirement plan. If you are looking for an easy and low-co...
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Social Security Insurance

Social Security Insurance is a program that offers benefits to many Americans. By financially contributing to the structure throughout your career, you can receive benefits such as disability, retirement or death. Old-Age and Survivors Insurance and Disability Insurance or OASDI is the framework of the Social Security Insurance. Millions of people are part of this system including old retirees together with their dependents, disabled employees as well as survivors of deceased workers. Millions o...
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Living Off Your Investments

When you're in the middle of a project, it's sometimes hard to imagine the final result. But, that stash of cash in your 401(k) will someday be your income, and you'll be taking money out of it rather than putting money in it. The strategies for investing while you're taking withdrawals are significantly different from the strategies for investing while you're still saving. Funds that guard against big losses in a bear market, for instance, might be better than those that post big gains in...
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Can I rollover my 401k while still employed?

In recent conversations, the question has come up as to whether you call rollover your 401k to a traditional IRA while still employed at the sponsoring employer. There seems to be some confusion about this and rumors of new laws that allow it. The short answer to the question is, no. By law, you can not withdraw 401k contributions, that is, pre-tax salary deferrals, before severance, plan termination, turning 59 1/2, death, disability or hardship (and you can't roll over hardship withdrawal...
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