Annuities are for conservative retirement planner vehicle

Annuities are popular retirement planning tools because they offer a structured, guaranteed income stream for life. Tax deferral gives annuities a significant advantage over other investment products that generate currently taxable income. Fixed annuities offer tax deferral, stable interest rates, and safety of principal. Variable annuities offer a variety of investment options, which means premiums… Continue reading Annuities are for conservative retirement planner vehicle

Planning for Retirement ?

NYC Comptroller Pushes City-Sponsored Retirement Plan: In New York City, three-fifths of private-sector employees don’t have employer-based retirement plans. Sign up for your employer 401k or other type of retirement plan. Try to save 5% – 10% of your monthly gross income. How many jobs have you held during your work life? Chances are more… Continue reading Planning for Retirement ?

Taxation on Retirement account

If retirement account has been funded with after tax money, the cost basis will be tax free withdrawal. Example: Rose owns a traditional IRA and has made $3,000 in nondeductible contributions to the plan for the past 20 years. When she reaches age 60, she decides to retire and take a lump-sum distribution from her… Continue reading Taxation on Retirement account

Pros and cons about Retirement account

What are different type of retirement account? It includes cash balance pension plans, profit sharing plans, 401(k) plans, 403(b) plans, employee stock ownership (ESOP) plans, simplified employee pension (SEP) plans, and SIMPLE IRA/401(k) plans. Pros: Withdrawals from Roth IRAs are tax free, provided the owner is at least 59½ years old and has owned the… Continue reading Pros and cons about Retirement account

Employer cutbacks are leaving more retirees with Medicare

Employer cutbacks are leaving more retirees with Medicare as their sole source of health insurance once they reach age 65. Unfortunately, Medicare Part A, which covers inpatient hospital care, and Part B, which helps pay for doctors’ services and other outpatient care, typically do not cover all of a retiree’s health care expenses. Because of… Continue reading Employer cutbacks are leaving more retirees with Medicare

A chronic illness that requires long-term care

A chronic illness that requires long-term care is perhaps the biggest event many retirees worry about facing—and paying for. For many people, this concern is a key motivator in building as large a retirement nest egg as possible, given that a year’s stay in a private nursing home room currently costs around $91,000, on average.… Continue reading A chronic illness that requires long-term care

Diversification of wealth

While diversification cannot assure a profit or protect against loss in a declining market, it can help guard against unfavorable fluctuations so that declines in interest income will be offset by growth in other investments—namely, stocks. It can also help ensure that assets will grow at a rate that keeps up with or exceeds inflation.

Funeral fund

This is a hypothetical concept. The funeral fund could be a fixed account with/without interest. Example: Rahim starts saving $50 monthly in Funeral Fund or bank account. He died after 1 year when there was $600 for his funeral. But, funeral costs $7000. Funeral fund is not able to pay funeral even. Where was the… Continue reading Funeral fund