Tag: Retirement

Tax Diversification: Exploring Retirement Savings Options

Boost your retirement savings with tax diversification! Learn what factors to consider when it comes to selecting investments for your future.

Retirement savings can be boosted with the right tax diversification. But deciding which types of investments to include in your retirement funds, such as stocks and bonds, is an important consideration. Learn what factors to consider when selecting investments for your future and how tax diversification can help you save.

Tax Diversification
Tax Diversification

Understand the Different Types of Retirement Accounts.

Retirement accounts come in a variety of shapes and sizes. Traditional or Roth 401(k)s, IRAs, and employer-sponsored plans are all options to consider. Each account offers different benefits, such as tax breaks, the ability to defer taxes until retirement age, and more. It’s important to understand the different types of retirement accounts to determine which option is best for you.

Invest in Tax-Deferred Accounts to Maximize Savings.

Tax-deferred retirement accounts, such as a traditional IRA or a 401(k), are an ideal way to maximize your retirement savings. With tax-deferred accounts, you can make contributions and defer paying taxes until you withdraw your money in retirement. This allows you to leave more of your hard earned money invested and growing, ultimately boosting the amount of money saved for the future.

Utilize Tax-Advantaged Accounts for Maximum Benefit.

Tax-advantaged accounts, such as Individual Retirement Accounts (IRAs) and 401(k)s are just two of many options you can use to diversify your retirement savings. With tax-advantaged accounts, you are able to take advantage of great features that other investments may not provide; such as special tax deductions or deferrals, dollar limit amounts and catch-up contributions. It’s important to research which accounts are best suited for your individual financial status and goals so you can benefit from the highest potential investments for a taxed wealthy retirement.

Take Advantage of Employer-Sponsored Retirements Plans.

Employer-sponsored retirement plans offer additional tax advantages on savings. Contributions to a 401(k) plan, for example, are deducted from pre-tax income, meaning that your annual taxable income is reduced by the amount of money you choose to contribute to the plan. Depending on your employer and the type of plan it offers, you may also be eligible for matching funds or other benefits. It’s important to consider researching and taking advantage of retirement plans offered through your employer if possible in order to benefit from their extra advantages!

Consider Alternatives to Traditional Retirement Accounts.

While employer-sponsored retirement plans are a great way to save and benefit from tax advantages, they may not be the right option for everyone. If you don’t have access to an employer-sponsored plan or want additional options, there are other retirement savings vehicles available. ROTH IRAs allow growth on income that is already taxed so that withdrawals in retirement are tax free. There are also investment accounts such as brokerage accounts or mutual funds that don’t offer the same tax advantaged benefits as employer-sponsored plans or ROTH IRAs, but can provide diversification and offer different returns that you may find beneficial for your goals.

Tax Carnival Ecstasy – February 15, 2014

Welcome to the February 15, 2014 edition of Tax Carnival Ecstasy. In this edition we start with an article from Bill Smith on taxes and retirement. And Kurt from MyMoneyCounselor.com presents an article on the Alternative Minimum Tax for 2013? Hope you enjoy all the articles, bookmark this carnival, share, tweet, and come back soon.

retirement

Bill Smith presents You Need To Know A Lot About Retirement posted at FastSwings, saying, “2014 Taxes are here causing many people to worry a lot about retirement. If you are among these people, i.e. you feel you are far behind in your retirement or haven’t started saving for it at all, this tax article will give you some advice on readying yourself for this imminent event.”

English: President Barack Obama's signature on...
English: President Barack Obama’s signature on the health insurance reform bill at the White House, March 23, 2010. The President signed the bill with 22 different pens. (Photo credit: Wikipedia)

taxes

Bill Smith presents TurboTax Makes the Most of Superbowl Time! posted at 2012 Tax – Free Tax Filing Options, saying, “There is nothing better this time of year than watching the Superbowl especially if your team made it.”

Bill Smith presents Healthcare & Intuit TurboTax posted at 2010 Taxes to 2013 Taxes, saying, “To know the ropes of TurboTax Health care and understand the highlighters of Affordable Care Act, turn your glances towards Intuit Inc. to get apprised of the facts.”

Bill Smith presents TurboTax And The Earned Income Tax Credit posted at 2013 Taxes, saying, “Individuals who wish to use a tax service may wish to try TurboTax 2013. This is the option that they may need to easily pay their taxes, and be able to get the tax help they can use.”

Bill Smith presents H&R Block Deluxe and TurboTax Deluxe posted at 2014 Taxes, saying, “H&R Block Deluxe and TurboTax Deluxe are all online tax software that offers tax solutions.”

[email protected] presents Will the Alternative Minimum Tax Zap You for 2013? posted at Money Counselor, saying, “Americans’ elected representatives have created a semi-secret weapon to help assure you pay what they deem is your fair share: the Alternative Minimum Tax.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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Are Annuities a Good Investment

Are Annuities a Good Investment

There are two different types of annuities: deferred annuities and immediate annuities. The type of annuity you choose depends on how soon you expect to receive payments. If you are looking for a long term investment where you plan on making withdrawals once you reach retirement then you might choose a deferred annuity. If you are looking to make withdrawals sooner than you may want to choose an immediate annuity.

English: Types of Annuities
English: Types of Annuities (Photo credit: Wikipedia)

Either type of annuity can be fixed or variable. A fixed annuity acts like a CD from a bank but in this case it is an investment with an insurance company. You have a fixed interest rate that you receive for the annuity and it is usually a higher percentage than a normal CD would bring at a bank.

The guaranteed interest payment from these fixed annuities as well as the minimum amounts that you have to invest makes the fixed annuities appealing for those who are not confident in the ways of the stock market.

Another nice thing is that you do not have to pay taxes on the interest gained until you decide to start withdrawing the money from the annuity. A disadvantage with fixed annuities is that the interest rates might be high to begin with but can drop after the first year of having the annuity. This unknown factor can be a turn off for some who are hoping that they can maintain the rates that they first received when they started their annuity.

If you do not like the new rates and want to withdraw your annuity before it matures then you might be stuck paying surrender charges that will cut into your profits. With a variable annuity you can choose from a variety of investments to put your money into and the rate of payment you receive depends on how well the investments performed. With variable annuities you invest in several different stock or bond like accounts that will help your investment grow over a long period of time. Just like with the fixed annuities you pay no taxes on your gains until you begin withdrawing from your account.

Although with variable annuities you may have an opportunity to have greater growth potential with your investment there are some drawbacks as well. The investments you chose may take a turn for the worse causing your potential growth to plummet. There are drawbacks with the tax rates when you decide to withdraw you money,as well as fees if you decide to withdraw early and there can be high sales commission fees. It is good to do your research before you decide which annuity is best for you or even if an annuity is a good investment.

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Tax Carnival Ecstasy – July 18, 2013

Little Book of Common Sense Investing
Little Book of Common Sense Investing (Photo credit: Wikipedia)

Welcome to the July 18, 2013 edition of Tax Carnival Ecstasy. In this edition we have 5 great articles starting with Daniel’s letter to the IRS disputing an insufficient funds charge. Bill Smith looks at reasons to adjust your w-4 withholding at work this year. And John Schmoll has investment advice for your retirement investing. Hope you like all the articles, bookmark, share, tweet and come back real soon.

Bill Smith presents Why Investors Should Be Interested In Bank Of America – FastSwings.com posted at FastSwings, saying, “There are several reasons that investors are starting to look into Bank of America stocks: the first being that for now, they are still fairly cheap because the bank is still paying off debts and has yet to reach its potential for profits.”

Daniel presents My Letter To The IRS Disputing Their Insufficient Funds Charge posted at Sweating The Big Stuff.

filing

Bill Smith presents Top Five Reasons To Adjust Your Withholding In 2013 posted at 2013 Taxes, saying, “Your withholding is the amount of money you have taken out of each paycheck to apply toward income taxes.”

retirement

John Schmoll presents Finding Strength in Our Lack of Investment Control posted at Frugal Rules, saying, “Investing in the stock market can be rife with emotion as stocks go up and down. While there is a lot we can’t control, there is much we can. By focusing on what we can control you can set yourself up for effective investing and start you down the road of investing for long term needs like retirement.”

John Schmoll presents What Makes a Company Worth Investing In posted at Frugal Rules, saying, “There are many things that you can look at if you’re interested in investing in stocks. By following some of the basics you can start to build a stock portfolio that will serve you well and help set you up for long term needs like retirement.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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Tax Carnival Ecstasy – February 16, 2012

taxes
taxes (Photo credit: 401K)

Welcome to the February 16, 2012 edition of Tax Carnival Ecstasy. In this edition we have an article by Bill Smith on Discharging Your Tax Debts In Bankruptcy Court. Pat Huddleston wants you to protext yourself from fraud in Accountants; A Love Story. And finally we have 8 Tips to Prepare for Retirement including a tax perspective. Hope you enjoy the articles, bookmark, share, tweet, like on Facebook and come back soon.

filing

Frank Goley presents Bond Analysis posted at Easy Forex News.

tax law

Bill Smith presents Can You Discharge Your Tax Debts In Bankruptcy Court posted at 2008 Taxes, saying, “There are many debts that you can discharge through bankruptcy. Is tax debt eligible for discharge through bankruptcy?”

taxes

Jessica Bird presents How CO2 Affects The Cost Of Your Car Tax posted at CarTaxBands.org, saying, “The amount of pollution that your car emits can have an affect on how much tax you pay. This article shows you how to find out what the CO2 emissions are on a car.”

Ranjita patra presents Top 4 Supply Management Trends Impacting Finance | Business Finance posted at Businesss Finance.

Bill Smith presents 8 Tips to Prepare for Retirement posted at 2008 Taxes, saying, “Whether you’re just starting to plan for retirement, or you’re retiring in the next year or two, there’s never a bad time to learn how to prepare yourself for the wonderful world of retirement.”

tips

Amy Gardner presents Average Interest Rates for Payday Loans posted at Payday Loans Online Resource.

Pat Huddleston presents Accountants; A Love Story | Investor’s Watchblog posted at Investor’s Watchblog, saying, “Tips on how to protect yourself from fraud”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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