Archive - May 2013

1
The Big Pension Decision – Should You Choose A Lump-Sum or Monthly Annuity Payments?
2
Fixing An IRA With The “Wrong” Beneficiary
3
Bonds Away!
4
State Income Tax And Retirement Income
5
Emotionally Charged Money: Inheritance

The Big Pension Decision – Should You Choose A Lump-Sum or Monthly Annuity Payments?

If you are fortunate enough to have this decision in front of you, you may be seeing some obvious reasons to take each of these options. Maybe you want to grab the cash now while it is available and invest in an IRA. Or maybe the idea of ‘guaranteed’ income for life sounds better.

Here are the key factors to consider:

Age & Health – Pension benefits are generally calculated based on a combination of years of service and final average salary. Also, life expectancy is used in determining lump-sum amounts. Therefore, typically women and those in good health …

Read More

Fixing An IRA With The “Wrong” Beneficiary

Quite often, for many different reasons (often known only to the deceased original owner), the original owner of an IRA designates a beneficiary that the survivors don’t necessarily agree with. It might be that only one of several children is designated, or perhaps additional beneficiaries are designated along with a spouse.  In cases like these, there are ways to make changes to the outcome of the inheritance.  In this article we specifically deal with the case where only one of four children was designated as the primary beneficiary of the IRA.

To resolve the situation, let’s consider the following IRA: …

Read More

Bonds Away!

Joey: “So, Ross. If you had a million dollars, what’s the first thing you’d buy?” 

Ross: “I’d probably get some municipal bonds, and then put the rest of the money in the bank and live off the interest.” 

Joey: “Well, we’ve heard from Dr. Fun.” 

–        From Friends, Season 3 Episode 18: “The One with the Hypnosis Tape”

A bond is an investment to receive the repayment of a “loan” at a certain interest rate. The way you invest in bonds matters now more than ever because of low interest rates.

Bond mutual funds are attractive for ease of use, …

Read More

State Income Tax And Retirement Income

On only a few rare occasions does it make sense to defer money to your 401(k) or other employer sponsored plan instead of a Roth IRA. Those occasions include when your gross income excludes you from contributing directly to a Roth IRA (you can still convert), you are currently at a very high tax rate or the case of when you live in a state where retirement income is excluded from state taxation.

Here in Illinois, the current law exempts retirement income from being taxed at the state level. What this means, is that any contributions to a 401(k), 403(b), …

Read More

Emotionally Charged Money: Inheritance

You may be one of the many Baby Boomers or  Gen-Xers who have received an inheritance or will in the not too distant future. It has been documented that the wealth transfer from the “Greatest Generation” to their heirs  will total $14 trillion. If you’ll be receiving an inheritance, it pays to prepare yourself, as no money is more emotionally charged than inherited money.

How Do You Feel About Your Inheritance?

Maybe the money is emotionally charged because you know how hard your parents worked for it. You watched your dad go to work everyday and your mom cook, clean …

Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login