Archive - 2018

1
Social Insecurity & Medicare Insolvency?
2
Designated Roth Account (Roth 401k) Distributions
3
Income Replacement with Disability Insurance
4
Avoid Retirement Plan Fees and Penalties
5
Bond Basics

Social Insecurity & Medicare Insolvency?

With about 10,000 baby boomers on average retiring every day, it’s not unusual for me to talk to clients and prospects who are anxious about the future of social security and medicare. Some clients, despite evidence and advice to the contrary, have gone ahead and filed for social security benefits even if it meant they would potentially reap hundreds of thousands of dollars less over their lifetimes, because they are worried that the systems are going “bankrupt”.

Given the stories and rumors that seem to float around endlessly about the imminent demise of social security and medicare, it is understandable …

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Designated Roth Account (Roth 401k) Distributions

Sen._William_V._Roth 401k_(R-DE)In a previous post we discussed the general information surrounding Designated Roth Accounts (also known as a Roth 401k) – eligibility, tax treatment, and contributions.  In this post we’ll go over the nuances involved in distributions from a Designated Roth Account under a 401k.  Distributions are a little different from most other retirement plans, as you’ll see…

Required Minimum Distributions

One of the first things that is different about Roth 401k distributions is that the Required Minimum Distribution (RMD) rules DO apply to these accounts.  This is different from the Roth IRA, as RMDs are not required by the original …

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Income Replacement with Disability Insurance

Most individuals understand the need for traditional life insurance. It pays a death benefit in the event a loved one, such as a spouse, dies prematurely. The death benefit is there to provide income for expenses, and to fund future expenses such as college or the surviving spouse’s retirement.

While not overlooked, a seldom thought about income replacement tool is disability. Disability insurance should not be ignored, and arguably should be considered as a higher priority than life insurance. This is because statistically, an individual has a higher chance of becoming disabled, than dying prematurely. Especially if they’re young.

Most …

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Avoid Retirement Plan Fees and Penalties

The main message about retirement is that you need to save (and you do!) but once you have some retirement savings, you also need to make sure you maximize your savings by not paying fees you need not pay. There are ways in which fees and penalties can eat into the resources you work so hard to save.

U.S. News & World Report offers information on “5 Retirement Fees You Should Never Pay” to get you thinking about how you can use your retirement money to benefit you instead of paying penalties.

Early withdrawal penalties: You may …

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Bond Basics

Bonds are boring, but smart investors use them for stability, diversification, and upcoming withdrawals. Understanding some basics will help you evaluate the risks and rewards of owning bonds in your portfolio.

What is a Bond?

A bond is essentially an “I.O.U.” You become a bondholder when you lend money to the government, a corporation, or a municipality. In exchange for your money, the bond issuer promises to pay interest periodically and repay principal equal to the bond’s face value at the end of a specific time period.

Consider a company that needs to build a new facility costing $2 million. …

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