This document provides information on investing for long-term financial goals like retirement and college. It discusses factors to consider for retirement planning like current age, projected retirement age, life expectancy, sources of retirement income, expenses, and risk tolerance. It also covers retirement savings vehicles like IRAs, employer plans, and annuities as well as investing strategies for different stages of life. The document emphasizes starting to save early, maximizing employer matches, estimating expenses, and developing a retirement income plan.
This popular session returns in 2015 with 12 new great ideas. There are a number of incentives out there for companies and individuals alike that, unless you are looking specifically for them, they may be overlooked.
Self-employed or own a small business? High-income, self-employed professionals are uniquely position to cut their taxes and save more for retirement with an excellent savings tool called a defined benefit plan. Save tens of thousands in taxes each year and build your retirement nest egg!
Tax reform proposals and the ongoing conversations around comprehensive tax reform have made individual tax planning for 2017 more complicated. In the absence of a clarity or certainty around tax changes, it is best to plan for the deductions, credits and other tax opportunities that are available now.
This popular session returns in 2015 with 12 new great ideas. There are a number of incentives out there for companies and individuals alike that, unless you are looking specifically for them, they may be overlooked.
Self-employed or own a small business? High-income, self-employed professionals are uniquely position to cut their taxes and save more for retirement with an excellent savings tool called a defined benefit plan. Save tens of thousands in taxes each year and build your retirement nest egg!
Tax reform proposals and the ongoing conversations around comprehensive tax reform have made individual tax planning for 2017 more complicated. In the absence of a clarity or certainty around tax changes, it is best to plan for the deductions, credits and other tax opportunities that are available now.
Michael Silver & Company CPAs has recently published an article on the benefits of retirement plans. Whether you have a small, independent business or a large company, we describe the advantages and disadvantages of each possible plan for each possible business.
2016 tax review hints and changes, including PEASE and PEP Limitation, Alternative Minimum Tax (AMT), donations of appreciated capital gain property, qualified charitable distributions, ELOI contracts, net investment income tax (NIIT), Kiddie Tax rates and qualifications, family limited partnerships, tax reform, and the "death tax" provided by a certified CPA.
Review this presentation on individual tax planning including key considerations to make in the closing months of 2013 and into 2014 - O'Connor Davies CPA - NYC CPA Firm.
The right tax strategy stays current with your environment.
The political landscape isnât the only thing changing in
2016. Estate planning opportunities are also shifting. This
supplement incorporates estate planning updates and other
considerations into tips designed to decrease your 2016 tax
bill. Charts throughout the supplement, including tax rates,
qualified retirement plan limitations and FICA/Medicare
taxes further help with your tax planning.
Module 4 of the Canadian Small Business Course looks at the topic areas related to tax planning and strategies you can utilize to save taxes.
In this course module we review strategies such as paying family members through a business, paying your child's tuition through a corporation and issuing shares to family members.
Also reviewed are a few advanced tax planning strategies that will enable you to pay medical expenses through your business and set up a company pension plan.
Information from a financial perspective for those who are being made or have already been made redundant. Actions they can take and the Options they have
Pre-tax retirement annuity contributions - the tax benefit that very few bene...Annemie Nieman CFPÂŽ
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We take out retirement annuities for the various tax benefits they offer, however, the benefit of a tax deduction is often only enjoyed 18 months after the first contribution for the tax year had been made, i.e. when tax season opens. This, when the Income Tax Act allows for the benefit of a tax deduction to be enjoyed each month, when the contribution to the retirement annuity is made.
This tax benefit can be utilised to increase take-home pay (for those who do not want to increase their retirement savings) or the tax benefit can be added to the existing retirement annuity contribution. You will then get a tax deduction on the increased contribution as well. It is like a tax saving on top of a tax saving!
Are your clients enjoying the benefit of pre-tax RA contributions?
Be sure youâre traveling in the right direction. From financial concerns to sound solutions, letâs talk about the challenges you face as you navigate the road toward retirement.
Michael Silver & Company CPAs has recently published an article on the benefits of retirement plans. Whether you have a small, independent business or a large company, we describe the advantages and disadvantages of each possible plan for each possible business.
2016 tax review hints and changes, including PEASE and PEP Limitation, Alternative Minimum Tax (AMT), donations of appreciated capital gain property, qualified charitable distributions, ELOI contracts, net investment income tax (NIIT), Kiddie Tax rates and qualifications, family limited partnerships, tax reform, and the "death tax" provided by a certified CPA.
Review this presentation on individual tax planning including key considerations to make in the closing months of 2013 and into 2014 - O'Connor Davies CPA - NYC CPA Firm.
The right tax strategy stays current with your environment.
The political landscape isnât the only thing changing in
2016. Estate planning opportunities are also shifting. This
supplement incorporates estate planning updates and other
considerations into tips designed to decrease your 2016 tax
bill. Charts throughout the supplement, including tax rates,
qualified retirement plan limitations and FICA/Medicare
taxes further help with your tax planning.
Module 4 of the Canadian Small Business Course looks at the topic areas related to tax planning and strategies you can utilize to save taxes.
In this course module we review strategies such as paying family members through a business, paying your child's tuition through a corporation and issuing shares to family members.
Also reviewed are a few advanced tax planning strategies that will enable you to pay medical expenses through your business and set up a company pension plan.
Information from a financial perspective for those who are being made or have already been made redundant. Actions they can take and the Options they have
Pre-tax retirement annuity contributions - the tax benefit that very few bene...Annemie Nieman CFPÂŽ
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We take out retirement annuities for the various tax benefits they offer, however, the benefit of a tax deduction is often only enjoyed 18 months after the first contribution for the tax year had been made, i.e. when tax season opens. This, when the Income Tax Act allows for the benefit of a tax deduction to be enjoyed each month, when the contribution to the retirement annuity is made.
This tax benefit can be utilised to increase take-home pay (for those who do not want to increase their retirement savings) or the tax benefit can be added to the existing retirement annuity contribution. You will then get a tax deduction on the increased contribution as well. It is like a tax saving on top of a tax saving!
Are your clients enjoying the benefit of pre-tax RA contributions?
Be sure youâre traveling in the right direction. From financial concerns to sound solutions, letâs talk about the challenges you face as you navigate the road toward retirement.
IntroductionComment by Exploring Series This is listed as a Head.docxvrickens
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Introduction Comment by Exploring Series: This is listed as a Heading 2, but it should be Heading 1. Please change this heading to a Heading 1 style.
It is never too early to save for your retirement. For a start, you can estimate the amount that you need to have before you can retire comfortably using financial calculators found on sites such as CNN Money, Kiplinger, Motley Fool, and TIAA-CREF financial services. The good part is, there are many different types of retirement plans that you can participate, individually or with your employers. To help you save for retirement, there are many government-regulated and government-approved retirement accounts that you can contribute a certain amount to annually. Why should you enroll in a retirement plan NOWnow? Did you know that your retirement can last for 30 years or more? A common rule to follow is that a retiree will need up to 80% of his/her annual income today to retire comfortably. Unfortunately, the average benefit amount paid monthly by the Social Security Administration is only $1,177.
Below are many advantages why you should start saving NOWnow:
¡ Tax on employee and employer contributions is deferred until distributed.
¡ Investment gains in the plan are not taxed until distributed.
¡ Retirement assets can be carried from one employer to another.
¡ Contributions can be made easily through payroll deduction.
¡ Saverâs Credit is available.
¡ Flexible plan options are available.
¡ Better financial security at retirement.
Future Retirement Savings Value - Assuming 6% annual return Comment by Exploring Series: You need to insert a caption for this table and the next table.
Monthly Savings
5 years
15 years
20 years
$50
$3,506
$14,614Â
 $23,218Â
$200
$14,024
$58,456
 $92,870Â
$500
$35,059
$146,136
$232,176
Source: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Benefits-of-Saving-Now
A contribution is defined as the amount that an employee and an employer can put into a retirement plan. There are, however, varying limits on how much we (including both employers and employees) can contribute to any of the retirement plan. Each plan has its own rules and criteria, and must specifically state that contributions or benefits cannot exceed certain limits. Employees can participate in contributions via salary reduction. Employers can match employeesâ contributions or contribute outright a certain amount into the employeesâ retirement account.
Traditional Individual Retirement Arrangements (IRAs) Comment by Exploring Series: Please change all headings formatted with Heading 3 to Heading 2 style.
There are two major kinds of IRAs â traditional and Roth. A traditional IRA is a way to save for retirement that gives you tax advantages. It allows you to make tax-deferred investments to provide financial security when you retire. Your traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement pla ...
Michael Silver & Company CPAs recently published an article on retirement plans for businesses. Whether you have a small, independent business or a large company, we discuss the advantages and disadvantages for each plan available.
Close your eyes for a moment--now try to picture yourself on the first day of your retirement. Your last day of work is behind you; there is no alarm clock jolting you out of sleep. You awaken on your own and you have the rest of your life ahead of you. Are you happy about your prospects? Relaxed? Energized? Excited? Now open your eyes.
Inflation Causes, Impacts, Mitigation Strategies, and BenefitsBarbara O'Neill
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60-minute webinar for AFCPE on 05/11/23 that discusses the causes and impacts of inflation and several dozen strategies to mitigate the effects of higer prices on household budgets.
The secret way to sell pi coins effortlessly.DOT TECH
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Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
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t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
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Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how can i use my minded pi coins I need some funds.DOT TECH
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If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. đ I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
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Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the worldâs largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
when will pi network coin be available on crypto exchange.DOT TECH
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There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
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Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
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Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
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As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
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The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how can I sell pi coins after successfully completing KYCDOT TECH
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Pi coins is not launched yet in any exchange đą this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAYÂ you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers âĨī¸
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
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The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a âRoaring Twentiesâ? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. governmentâs aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
âIn order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,â says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
where can I find a legit pi merchant onlineDOT TECH
Â
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Â
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
investing for Long-Term Goals (Retirement-College)
1. Investing for Long-Term
Financial Goals
(Retirement and College)
Dr. Barbara OâNeill, CFPÂŽ
Rutgers Cooperative Extension
oneill@aesop.rutgers.edu
3. What Are Your Retirement
Dreams?
Investing can
get you there!
Retirement â âTime in life when most of
oneâs income changes from earned income to
Social Security, employer-based benefits,
withdrawals from private saving plans, and
perhaps income from part-time employment.â
4. Key Retirement Planning Factors
īŽ Current age and projected retirement age?
īŽ How long will you live?
īŽ What will be your source(s) of income?
īŽ How much income do you need each year?
īŽ How much money have you already saved?
īŽ How comfortable are you taking investment risks?
5. The Ball Park Estimate
īŽ Six easy steps; can do online or download paper worksheet
īŽ Can do online at www.choosetosave.org
īŽ Flexible annual retirement income and life expectancy figures
īŽ Assumes a 3% constant real rate of return
6. Retirement Living Expenses
īŽ Some expenses may go down or stop:
ī 401(k) retirement fund contributions
ī Work expenses - less for gas, lunches out
ī Clothing expenses - fewer and more casual
ī Housing expenses - house payment may stop if your house is paid off
ī Federal income taxes will probably be lower
īŽ Other expenses may go up:
ī Life and health insurance unless your employer continues coverage
ī Medical expenses increase with age
ī Expenses for leisure activities
ī Gifts and contributions
īŽ Inflation will increase the amount needed to cover expenses over the course of retirement
7. The Benefit of Starting Early
Take advantage of the time value of money
ī¨Start at age 25:
īŽ Invest $50 a week
īŽ At 6% APR
īŽ For 40 years
ī¨Start at age 50:
īŽ Invest $200 a week
īŽ At 6% APR
īŽ For 15 years
N = 480 months
FV = $431,490
N = 180 months
FV = $252,043
8. Retirement Savings Plans
īŽ Tax-deferred plans postpone taxes until
withdrawal (on both contribution and earnings)
īŽ Often require investor initiative to enroll
īŽ Investors make investment selections
īŽ Restrictions: contribution amount and age
limit for penalty-free withdrawals
īŽ Required minimum distribution rules
(exception: Roth IRAs)
9. Building a Retirement Investment
Portfolio
īŽ Determine % of money in each broad asset class (e.g.,
60% equity, 40% fixed income)
īŽ Break down into more specific categories
ī¨ Equity: 10% real estate, 50% stocks
ī¨ Fixed-Income: 30% bonds, 10% cash
īŽ Identify specific mutual funds or securities
īŽ Key investment strategies
ī¨ Dollar-cost averaging
ī¨ Occasional portfolio rebalancing
10. Be Sure to Diversify Among
Industry Sectors
īŽ Building/forestry
īŽ Financial services
īŽ Consumer growth (e.g.,
soft drinks)
īŽ Consumer staples (e.g.,
food)
īŽ Consumer cyclicals (e.g.,
cars)
īŽ Technology
īŽ Capital goods (e.g.,
machinery)
īŽ Energy (e.g., oil)
īŽ Materials (e.g., paper)
īŽ Transportation
īŽ Utilities
īŽ Health care
īŽ Conglomerates
11. Sources of Retirement Income
īŽ Social Security
īŽ Personal Retirement Savings (e.g., Roth and
Traditional IRAs and taxable and tax-free investments )
īŽ Employer Pension Plans
ī¨Defined Contribution
ī¨Defined Benefit
īŽ Annuities
īŽ Other?
12. Individual Retirement Accounts
īŽ A personal retirement savings plan
īŽ Available to people under age 70 with earned
income from a job or self-employment
īŽ Available from a variety of vendors
īŽ Not an investment but a place to put investments:
ī¨ Examples: mutual funds, stocks, bonds, CDs
13. Traditional IRAs
īŽ $5,500 max contribution in 2015 (+ $1,000 catch-up if 50+)
ī¨ Canât contribute once you turn 70 ÂŊ (at end of tax year), even if still working
īŽ Contribution may be tax-deductible (depending on adjusted
gross income and access to an employer plan)
īŽ Earnings accumulate tax-deferred until withdrawal
īŽ May begin penalty-free withdrawals at age 59 ÂŊ
īŽ Must begin withdrawals at age 70 ÂŊ
īŽ Withdrawals are taxed as ordinary income
īŽ Resource: http://www.irs.gov/taxtopics/tc451.html
15. Roth IRAs
īŽ Contributions made with after-tax income
īŽ Contributions are not tax-deductible and may be
withdrawn without penalty
īŽ Maximum income limits for contributing
īŽ After account is open five years, earnings are tax-
free if you are at least age 59 ÂŊ
īŽ Can convert a Regular IRA to a Roth IRA
īŽ Must pay taxes for year of conversion
16. Spousal IRAs
īŽ Contributions for a non-working spouse if
filing a joint return
īŽ Same contribution limits as working spouseâs
Roth or Traditional IRA:
ī¨Maximum of $11,000 if both under age 50
ī¨Maximum of $13,000 if both age 50 or older
17. IRA Terminology
īŽ Rollover- Transferring your IRA account
from one IRA custodian to another
ī¨Best to do a direct rollover by custodians
ī¨Typically between like IRAs (e.g., 2 Roth IRAs)
īŽ Beneficiary- Person(s) named to receive
accumulated IRA assets when you die
ī¨Name contingent beneficiary(ies) also
18. Employer Retirement Plans:
Defined Benefit Pensions
īŽ Employer pays a certain amount per month when
workers retire using a formula based on:
ī¨ Pre-retirement salary
ī¨ Number of years of service
īŽ Employers make investment decisions; assume
risk of having enough money
īŽ Workersâ benefit amount stays the same
regardless of how the investments perform
19. Employer Retirement Plans:
Defined Contribution
īŽ âSalary-reductionâ plan: workers elect to reduce
their salary (up to maximum amount allowed)
īŽ Plan contributions and earnings are tax-deferred
īŽ Some employers provide matched savings
īŽ Workers select specific investments
īŽ âYou have what you saved for as long as it lastsâ
20. Types of Employer Plans
īŽ 401(k)s- Corporate employees
īŽ 403(b)s- School, university, and non-profit
organization employees
īŽ Section 457 Plans- State, county, and
municipal government employees
īŽ Thrift Savings Plan (TSP)- federal
government employees and service members
21. Benefits of Employer Retirement
Savings Plans
īŽ Tax Advantages- Funded with pre-tax dollars
ī¨ Example: $40,000 gross income; $3,000 contribution;
$37,000 federal taxable income
īŽ Automation- Deposits deducted from pay
ī¨ A common form of dollar-cost averaging
īŽ Matching Contributions-% of workersâ pay
ī¨ Most common in 401(k) plans; some 403(b) plans
īŽ Portability- Can take money when leaving a job
22. Drawbacks of Employer
Retirement Savings Plans
īŽ Employer plan may have limited menu of investment
options
ī¨ Work-around: Balance out with taxable accounts
īŽ Workers may have to wait to participate
ī¨ Work-around: Save somewhere else (e.g., credit union) to
get used to payroll deduction
īŽ High administrative costs
ī¨ Work-around: Lobby employer for low-cost options
23. Vesting
īŽ Amount of time workers have to work to be
entitled to employer retirement plan
contributions
īŽ Two formulas:
ī¨Gradual vesting: 6 years
ī¨Cliff vesting: 5 years
īŽ Always consider vesting period before making
a job change
24. Self-Employed and Small
Business Retirement Plans
īŽ Keogh plans
īŽ SEP or SEP-IRA
ī¨Simplified Employee Pension
īŽ SIMPLE-IRA
ī¨Savings Incentive Match Plan for Employees
25. Simplified Employee Pension
(SEP or SEP-IRA)
īŽ Simplest retirement plan for self-employed persons
īŽ An IRA funded by small business owner for self and
employees (all workers must be treated the same)
īŽ Employer can make annual contributions up to $53,000
(in 2015)
īŽ Contributions are tax-deductible
īŽ Same withdrawal and penalty rules as IRAs
26. 26
IRA and Qualified Employer
Retirement Plan Withdrawals
īŽ CAN make withdrawals without penalty after
age 59 ÂŊ (any amount)
īŽ MUST begin taking Required Minimum
Distributions (RMDs) at age 70 ÂŊ
īŽ Some people need money immediately
īŽ Others want to keep money invested as long as
possible (until 70 ÂŊ)
ī¨ to continue deferring income taxes
ī¨ to stretch out their retirement assets
27. Required Beginning Date (RBD)
īŽ Minimum payments from regular IRAs must begin
by April 1 of year after the year when account
owner reaches 70 ÂŊ
ī¨Example: 4/1/16 if you turn 70 ÂŊ in 2015
īŽ Minimum payments from qualified plans must start
by the LATER of:
ī¨The year participant turns 70ÂŊ OR
ī¨The year employee actually retires (current
employerâs plan ONLY)
28. 28
More About RMD Rules
īŽ After the first year, RMDs must be made by
December 31 of every year
ī¨Example: 2015 RMD by 12/31/15; based on current
age divisor and account balance on 12/31/14
īŽ Can take RMDs any time during year
īŽ Multiple payouts are fine as long as the
minimum amount is withdrawn
29. 29
Example of a RMD Calculation
īŽ Person turns 70 in first half of year
īŽ Appropriate divisor is 27.4
īŽ Assume $100,000 in IRA at previous year-end
īŽ $100,000/27.4 = $3,650 (RMD amount)
īŽ Can always withdraw > RMD
īŽ IRS penalty of 50% of shortfall if < RMD
Can withdraw RMD from as few or as many IRA accounts as you wish.
Suggestion: Consolidate IRA accounts for easier record-keeping
30. Annuities
īŽ Insurance company product sold by financial advisors
īŽ Purchased on your own with after-tax dollars
īŽ Money compounds tax-deferred
īŽ Pay tax on earnings at regular tax rate at withdrawal
īŽ Often have high expenses compared to mutual funds and
other securities (especially variable annuities)
31. Types of Annuities
īŽ Immediate
ī¨ Purchased with lump sum of money (e.g., life insurance)
ī¨ Fixed income for life starting one month after purchase
īŽ Deferred
ī¨ Single premium purchase; buy now and collect later
ī¨ Deposits over time (e.g., during working years)
īŽ Fixed - Earns an interest rate established for a set time
ī¨ Like a tax-deferred CD
īŽ Variable - Earnings dependent on performance of
subaccounts
ī¨ Like tax-deferred mutual funds
32. Investing for College: 4 Options
īŽ Section 529 Plans
īŽ Coverdell Education Savings Accounts
ī¨ Formerly called âEducation IRAsâ
ī¨ $2,000 annual deposit limit; income limits
īŽ Uniform Gifts to Minors Accounts
ī¨ Acronym: UGMAs
īŽ U.S. Savings Bonds
ī¨ No federal tax for college expenses; annual income limits apply
Education is often key to future
earning ability and lifestyle
33. Section 529 Plans
īŽ Named for section of IRS tax code
īŽ Sponsored by state government
īŽ Many states: managed by investment companies
īŽ Plan features and investment options vary from
state to state
īŽ Many have âglide pathsâ and automatically get more
conservative as child ages
īŽ Good info source: http://www.collegesavings.org
34. Investing in Your 20s
īŽ Donât have to sacrifice a lot: even modest regular
deposits will have high impact
īŽ Time is on your side (compound interest)
īŽ Pay off high-interest debt quickly and low rate
loans over time
īŽ Begin an IRA and/or employer retirement plan
īŽ Start out with an index fund or life-cycle fund and
branch out (focus on growth)
35. Investing in Your 30s and 40s
īŽ Accumulate an adequate emergency fund
īŽ Match investments to goals; as a goal gets
closer, shift to stable, fixed-income investments
īŽ Fund a college savings plan for children after
you fund your retirement savings plan(s)
īŽ Keep most of your retirement savings invested
in stock, stock mutual funds, and/or stock ETFs
(exchange-traded funds)
36. Investing in Your 50s
īŽ Try to contribute the maximum allowed to employer
retirement savings plan
īŽ Use IRAs, taxable accounts and/or annuities to invest
even more
īŽ With 10 years to retire, keep growth allocation
īŽ Consider postponing retirement if short on cash:
ī¨ Accumulate more in investment accounts
ī¨ Earn higher Social Security and/or pension benefit
ī¨ Postpone tapping assets
37. Investing in Your 60s & Beyond
īŽ Could have 20-30 years in retirement so keep a
portion of portfolio invested for growth
īŽ Select income-oriented investments
ī¨ dividend-paying stock or preferred stock
ī¨ investment grade corporate or municipal bonds
ī¨ U.S. Treasury securities
īŽ Develop a plan to create a retirement âpaycheckâ
īŽ Plan for RMD withdrawals after age 70 ÂŊ
īŽ Consider an immediate annuity with lump sums
38. Action Steps
īŽ Start or increase retirement savings, even 1% more of pay
īŽ Earn the maximum match available from your employer
īŽ Estimate retirement living expenses
īŽ Estimate potential length of retirement
īŽ Determine your current net worth
īŽ Use personal data to do a retirement savings need
calculation (e.g., The Ballpark Estimate)
īŽ Use the âRule of 3â to compare investments
39. Other Prudent Strategies
īŽ Aim to pay off mortgage before you retire
īŽ Make sure you get all the income you are entitled
to (e.g., former employerâs pension)
īŽ Consider converting illiquid assets into cash or
income, if needed (e.g., collectibles, land, reverse mortgage)
īŽ Consider working later and/or during retirement
īŽ Dip into your nest egg cautiously (4% withdrawal rule)
40. Questions and Comments?
Barbara O'Neill, Ph.D., CFPÂŽ, CRPC
Extension Specialist in Financial Resource Management
and Distinguished Professor
Rutgers University
Phone: 848-932-9126
E-mail: oneill@aesop.rutgers.edu
Internet: http://njaes.rutgers.edu/money/
Twitter: http://twitter.com/moneytalk1
Editor's Notes
Refer learners to My Retirement Dream (Exercise 3)
Point out some of the retirement dreams illustrated on the slide (traveling in an RV, working on a computer, socialization and exercise with friends, golf, travel, travel, beaches, etc.).
Ask learners to describe in words or draw some of their retirement dreams.
Ask for volunteers to share their dreams.
Discuss.
Be Sure to Diversify Among Industry Sectors
Diversification is a key to successful investing. This means ânot putting all of your eggs (money) in one basket (investment product).â Ownership of individual stock of at least 12 to 15 companies representing eight or more industry sectors is a commonly suggested guideline. If this is unaffordable, it is probably best to purchase mutual funds.
Luckily, it is possible to buy stock inexpensively, through the purchase options discussed previously, and still reduce your risk of loss. Be sure to purchase companies in different industries, as well as different companies within the same industry (e.g., pharmaceuticals, financial services).
This slide shows industry sectors recommended for purchase by Better Investing (formerly called the National Association of Investors Corporation or NAIC). An example is given for those whose products are not obvious from their title.
With DRIPs and DPPs, stocks can often be purchased for amounts as little as $25. Thus, a portfolio of stock containing, say, 3 to 5 shares of stock in these 12 industry sectors can be purchased for less than $3,000. Note: Many companies charge fees to purchase or sell shares. Get all the details before you invest.