Want to participate in the community here on FutureYears? Make this a part of your Retirement Planning to come up and share your views. You can now do so by using your Facebook or Twitter ID! Just click on the appropriate logo under “Post Success Stories With” in the center of the home page and you will be asked to sign in to the social network you’ve chosen. After a simple click to authorize connecting your profile to FutureYears, you can begin posting questions and providing answers. Of course, if you’d prefer to have a separate account, you can go through the steps on the registration page.
Once inside, you’ll be directed to My Dashboard. Below are a few common questions:
How do I ask a question?
Begin by clicking on the “Ask a Question” button, which will take you to the creation page. There will be two fields for you to fill out: the upper one for the topic you’re interested in (Life Insurance, Home Health Providers, etc.) and the lower one for the question itself. Once you have filled both in, click the “Create” button and your question will be posted to the forum. As people begin to respond, you can click the “My Questions” link on the dashboard and pick the corresponding question you would like to read to see answers from the community.
How do I answer a question?
Begin by clicking “View All Q n A” on the dashboard. This will have a list of recent questions and, if applicable, any answers that have been given. Simply click on the “read more…” link and you’ll be directed to the appropriate page. Once there, you can read through all the responses, then supply your own thoughts by filling in the box at the bottom and clicking the “Comment” button.
If you’ve asked a question and want to answer your own, you can do so by following these instructions or clicking the “My Questions” link and selecting the appropriate question. Once again, you’ll merely have to enter your ideas into the box at the bottom and click “Comment” to add them to the discussion.
How do I start a discussion group?
From the dashboard, click on “Start New Group” and you will be directed to the correct page. Name the group you’d like to begin (Investment Tips, e.g.) and add in three primary topics (investments, stocks, bonds, e.g.). After that, add a primary location to help people understand how your thoughts might be more relevant to them. Before clicking “submit” you’ll want to add a group description, as it will help new members understand the direction of the group before joining up.
After you’ve clicked “submit,” your group will be listed under the “My Groups” tab on the dashboard and in the left column of discussion pages. Once you click on the group’s name, you’ll be directed to the page where comments can be submitted. On the right side you’ll find a “Join this Group” button. Once you’ve subscribed to the group, you’ll be able to click the “Start Discussion” button, give your discussion a topic and create a description, which will serve as the first post.
How do I join a discussion group?
There are two separate ways to go about this, as you’ll see “Search Groups” and “Search Discussion” buttons on the dashboard. If you have a general idea of what you’re looking for or a place you’d like to see the information come from, click “Search Groups.” Here, you can enter a topic (retirement communities, e.g.) or location and look for groups based on that information. If you know of a specific discussion you’d like to join, then click the “Search Discussion” button and enter the name (Dating After 50, for example) then click the “Search Threads” link to be directed to it.
Once you’ve found a group you’d like to connect to, click the “Join this Group” button on the right side of the screen. From there you’ll be able to contribute by clicking on the individual thread, typing in your thoughts and clicking the “Comment” button.
Planning for retirement is a major part of life for any working adult. In recent years, employer pension plans have dwindled as the amount of options available has grown. Customers are now more responsible than ever for understanding the basic information before they even speak to a financial planner. Below you will find descriptions of the three primary components of Retirement Planning.
Generally speaking, these are the safest investment you can make. You will make a certain number of payments into the annuity at a pre-determined amount, based on how long you’re investing and what your return will be. In the future, it will pay you back either a guaranteed amount (fixed annuity) or a sum based on market performance (variable annuity). Unlike Roth IRAs and 401(k)s, which are predominantly made up of stocks and bonds, there aren’t limits on your tax-deferred contributions.
For those looking for a relatively stable way to invest in the markets, bonds are the way to go. In essence, you will be making a small loan to a company or government agency. In exchange for your contribution, you are promised a set return when the bond matures several years down the road. Keep in mind, though, that it’s possible the amount will go unpaid in cases of poor returns or bankruptcy.
The most uncertain option is to buy shares (stocks) of a company, but it also provides the highest return. When things are going well, the equity you have provides tremendous gains. If the market takes a turn for the worse, you could lose everything, unfortunately. This is why all Roth IRAs and 401(k)s have a mix of stocks and bonds as part of the portfolio.
Based on what you’d like to achieve, it’s best to find an appropriate balance between high- and low-risk choices. Early in your career, you’ll want to tilt your investments towards stocks because of the time you have to “make up” losses. As you near retirement, it’s advisable to shift toward bonds and annuities – programs that have a better guarantee of return as you come to the point of requiring steady cash flow.Thus you can plan your Retirement Funds easily with these options available.
When it comes time to set out your plan for the future, find a licensed financial advisor to walk you through the steps necessary to achieve your goals. And, because there are many options.
A Defined Benefit Retirement Plan is an ideal option to make you cash rich and financially stable even after you have retired from service. It is a unique form of retirement plan and is mostly sponsored by the employer. By being enrolled under the defined benefit retirement plan, you can enjoy additional funds and also a number of tax benefits.
In case of these types of plans, the benefits of the employees are based according to a calculation which takes in account various important factors and attributes such as the history of your salary and income, the tenure of our employment and other major things. In case of the plans, the management of the portfolio and the risks associated with investments are completely under the company’s control. In some states, these plans are also sometimes referred to as non-qualified benefit plans or qualified benefit plans.
There are plenty of defined benefit retirement plans that are available in the market. For getting the best deals, you need to choose the right one that is applicable for your investments. Even if you enroll into these plans and opt for early retirement, you can get good benefits. Another advantage of the plans is that you can enjoy tax benefits and exemptions. Only after you withdraw money from the account, you are liable to the tax rates. The benefits that you get are also not dependant on the returns of the assets.
There are certain other features of the defined benefit plans which make them preferred by the retirees. Even if you are covered under the defined plans, you can easily have other types of retirement accounts. You can own a business that can be of any size and need to file a form 5500 with a Schedule B on a yearly basis.
Compared to other Retirement Planning, the administration costs in these types of plans are more. However, considering the predictable amount of the benefits in a short period of time, the extra money that you pay is worth. If the minimum requirement of contribution is not fulfilled, you need to pay an excise tax. At times, loans are also permitted under the plan.
There are few times a party is more welcome than when a working adult finally reaches retirement. Leaving decades’ worth of effort in a given field behind can be an overwhelming reality for many, so it helps to send them off with a celebration of their contribution. Since it’s likely the only time the person will retire, it’s important to get things right. Be sure to make the effort to do some research for the best ideas for everything from location to cake.
Important factors to be considered:
As with any occasion, it’s important to ask some questions before beginning the planning:
- Will this be a surprise party?
- Where is the best place to host it?
- How many guests would need to be accommodated?
- What kind of food and beverages will be served, if any?
- Will there be a presentation of some kind?
Taking the time to consider various factors for Retirement Party Ideas will do a lot to determine how the event turns out, which will guide the thought process throughout preparation. Celebrating someone’s retirement can be as simple as cake in the cafeteria or as elaborate as sailing on a private yacht.
One of the first things you’ll want to settle on is a theme, if you are going to have one at all. This can be used to incorporate more personal details about the honoree (which ought to be done, anyway) by highlighting some of their interests, like fishing, golf or knitting. If you’d like to be more creative, you can set up events within the larger party, such as smashing an alarm clock or punching the time card for the last time. Sometimes a theme can revolve around a silly gift, like broken electronics given to the new retiree because “they don’t work anymore, either.”
Picking out decorations can lead to some questions, too. First and foremost, it’s important to include photos of the individual. (It is their retirement party, after all.) This can be turned into a presentation or, if the budget allows, a humorous picture might be printed onto napkins, plates or display materials. As mentioned above, it can be centered around the retiree’s hobbies, including equipment or other objects related to the activity. It’s common for a “black out,” in which balloons, table cloths and guests in attendance show up “in mourning.”
Speeches or presentations are customary, allowing co-workers and the party’s subject to share stories from the time they’ve served together. In some cases, a “roast” is held, but it should only be done if the new retiree is up for it. (Some are a little too shy.) At the very least, it’s a good idea to have a guest book, memory box or video camera for people to record down memories. This works out as a pleasant parting gift for the honoree, helping them to recall their good ideas and funny moments throughout their employment.
When it comes time to pick out food, take the time to figure out some of the retiree’s favorites. It would be a pity to send them into retirement with something they aren’t fond of! If you’re having a sit-down dinner, see about having their favorite restaurant cater. Light snacks and appetizers are always a good bet when attendees will be standing for the most part. Many times, co-workers are more than willing to bring home-baked goods as a token of their affection.
Keep doing your Retirement Planning with lots of party ideas here.
Internal Revenue Service (IRS) tax code has created a confusing set of retirement plans centered on numbers. The specific provisions and narrower focus of the 457(b) might give qualified individuals some attractive benefits, though. It is very similar to the better-known 401(k) and 403(b) in that it is a tax-deferred plan, with four principal differences: the tax code creates restrictions on the types of organizations which may participate, a smaller number of employees are designated eligible, actual control of the assets and the absence of early withdrawal penalties.
At first glance, a 457(b) plan appears to be a special variant of the 401(k). The contribution maximums, in particular, are exactly the same. Participating individuals can set aside $16,500 per year, with an additional $5,500 available for persons aged 50 and older as a “catch up” option. And, eligible workers can set funds aside to the allowable limits in both, if an employer makes them available. This means someone nearing retirement could contribute up to $44,000 per year – or, in some cases, up to 200% of the set 457(b) maximums for the last three years of the plan in addition to $22,000 in a 401(k).
What sets a 457(b) apart is the absence of an early withdrawal penalty. A 401(k) imposes a 10% fee when it’s drawn from before the age of 59.5 and the 457(b) does not, though the monies are subject to regular income tax. It’s even possible for a participant to use the plan as back up case of emergency, as long as legal requirements are met and other financial resources are exhausted. There’s also no minimum retirement age, as with the 401(k), but the federal government offsets this by keeping 457(b) participants from putting income into a Roth IRA when moving to another job.
Only state and local governments, as well as certain tax-exempt entities, can offer their employees the 457(b). The law makes provisions for the following groups to carry options for specific Retirement Plannning: charitable or religious organizations, private hospitals or foundations, labor unions, trade associations, fraternal orders, educational organizations and farmers cooperatives. Further, the IRS keeps these not-for-profit employers from matching contributions to 457(b) plans, which is much different than for-profit corporations with the 401(k) alternative.
On top of that, only certain employees can be given the choice of opening a 457(b). Though each organization determines the cut-off, beneficiaries are generally among the highest-compensated in a given organization. This gives individuals in their peak earning years the ability to defer federal and state income tax until later. For this reason, they are often referred to as “top hat plans,” especially when an executive is able to utilize the 457(f) option. (This is a less common case which allows the employer to put back as much it can pay and the employee is willing to allow.)
It is important to remember, though, that these assets remain in the control of the employer. In contrast to a 401(k), which is immediately released to the worker, the 457 Retirement Plan is considered the organization’s property until it is paid out. This means that, in the event the employer defaults on a loan or goes bankrupt, the funds are available to creditors seeking repayment and the employee loses the money altogether.
The early retirement pension is one of the main components of the pension system in the US. Through the early pension system, the retirees are provided with financial stability which helps them to have constant source of funds. In most cases, the early retirement pension scheme is applied for workers whose age is between 18 and 67 years.
In simple terms, the main condition on which the early pension scheme is granted is that is the work capacity of the applicant is reduced by half of his or her overall capacity. In most cases, there are 3 sub divisions which are included in the Early Retirement Pension scheme. The classifications are based on work opportunities, age, the ability to work and other factors.
Usually, the income that you get from the early pension is based on the own income of the individual or the pensioner. In this case, the income of the spouse does not affect the retirement pension amount. In special cases, there may be addition of supplements to the pension scheme such as needs supplements, home care supplements, medicine and health supplements and so on.
One of the main advantages of the early retirement pension is that it encourages the older employees who are less productive to retire early from the job. On the other hand, it is also beneficial to the employees as the firm does not require to reduce the normal salary of the employees.
Some companies also provide health insurance benefits in the early retirement pension scheme. In most cases, those who are aged over 50 needs to have at least one health insurance plan. One of the main aspects of judging the early pension plan is that whether it is sufficient enough to cover your expenses. If the scheme is sufficient to take care of the expenses, you can accept the early pension offer.
Social Security is also another vital factor in determining the effectiveness of the early pension scheme. Try to see whether the early pension includes social security. One of the best ways to get better benefits is to delay your social security claims to enjoy longer returns.
If you have that sufficient financial stability and risk taking ability, early retirement pension can be a good option for you. Do your Retirement Planning now and have a better future.
Confusion reigns after The Wall Street Journal reported a major policy shift from the American Association for Retired Persons (AARP) on Friday, June 17th. The country’s most powerful lobbying group for older citizens, long opposed to cuts in Social Security benefits, is now willing to admit the time has come. According to John Rother, AARP head of policy, “The ship was sailing. I wanted to be at the wheel when that happens.”
Opposition amongst membership began almost immediately, prompting AARP CEO A. Barry Rand to issue a statement later in the day against “inaccurate media stories” and “misleading characterization.” He went on to say AARP is “currently fighting some proposals in Washington to cut Social Security.” Though the program has long been known to be running out of time – funding reserves are estimated to disappear in 2036 – Rand reiterated, “Social Security should not be used as piggy bank to solve the nation’s deficit.”
Despite the statement, the change is said to have been approved by the organization’s board of directors. Evidence mounted as the group declined to join Strengthen Social Security, a group of 300-plus lobbying groups created to fight benefit cuts. Rand made it clear “any changes would be phased in slowly, over time” before going on to mention opposition to certain key issues is just as strong now as it was when the group took a stand against them in 2005.
“They are completely at odds with their membership,” said Nancy Altman, Strengthen Social Security co-chair. She noted AARP’s change would definitely carry weight in the Capitol, though perhaps at the expense of those it represents.
“I think they’re going to get burned,” said her fellow co-chair, Eric Kingson.
The AARP position shift is said to have limits, particularly with respect to ending the program for affluent beneficiaries. In addition, it has proposed tax increases to make the program financially stable again, meaning it will have no part in being used for national debt reduction. (Funding comes from outside the federal budget, so it doesn’t contribute to the deficit, either.)
The Obama administration is said to be looking to raise the retirement age and lower the index for annual cost of living benefit increases as part of a deal. These cuts would be offset by higher taxes on the wealthy, a move to improve revenue and create better long-term stability for the program.
“Social Security should be strengthened to provide adequate benefits and…sufficiently financed to ensure solvency with a stable trust fund for the next 75 years,” Rand asserted in the statement. Both Republican and Democratic representatives believe that minimum standard for solvency can be achieved by collecting more taxes and paying fewer benefits.
AARP has planned dozens of town-hall meetings across the country to explain the problem and possible answers, but selling the policy move to members will be difficult. According to a February poll from The Wall Street Journal and NBC News, resistance to cuts of any kind is high: 84% of Americans 65 and older oppose them. The group will be mindful of the larger ramifications, too. It lost 300,000 members after endorsing President Obama’s health-care law, which reduced Medicare by $500 million.
Having a proper Retirement Planning is a must.
The Roth 401 (k) account is one of the major parts of the 401(k) plans. It ranks among the well known retirement plans in the US. The plan was established by the United States Congress and is covered under the Internal Revenue Code. The most striking aspect of the Roth 401 (k) plan is that it is mixture of the various characteristics of the traditional 401(k) and Roth IRA plans. As such, you can get two fold benefits and make yourself more financially stable by being covered under the plan.
Roth 401k – benefits
Recent surveys made on retirees and the aged have showed that a good number of retirees and employees are opting for the Roth 401k account to enjoy better benefits. By being covered under the account, you can opt for contributing your funds on a post tax elective deferral basis. In most cases, combined elective deferrals that an employee can make can exceed $16,500 for a tax year if he or she is under the age of 50. If one is 50 years of age or more, he or she can contribute an additional amount of $5,500 to the Roth 401(k) account.
By being covered under the Roth 401 (K) plan, you are allowed to make matching contributions to the particular Roth accounts. However, you need to make the matching funds on a pre-tax basis. This is one of the major differences between Roth 401(k) account and traditional accounts. In case of the Roth accounts, they are funded with the after tax dollars while in case of the traditional 401k accounts; they are funded with pre tax dollars. In case of the after tax dollars, the taxes for the funds are paid in the current year itself. The pre tax dollars do not have federal taxable incomes of the current year.
If you already have a Roth IRA account, you should go for the Roth 401(k) p0lan as you will be greatly benefited. It provides you with good increase on your funds and makes you financially secure in the long run. You can also enjoy tax free distribution and your income does not affect the distribution. Compared to the normal Roth 401(k) where $5,000 is the upper limit, the Roth 401 (k) contributions can amount to $16,500. However, for the contributions, you should not have other elective deferrals during the current year.
Terms & Conditions
Apart from these, there are some other conditions and terms that are applicable in case of the Roth 401(k) account. They are:-
- The money that you put into the Roth 401(k) contributions cannot be changed into the regular 401(k) account.
- After you have left the job, you can change the Roth 401(k) contributions to a Roth IRA account.
- It is up to the company to decide whether they will provide Roth 401(k) account apart from the traditional 401(k) plan.
So do your Retirement Planning at the earliest and get the benefits fast.
Contribution Retirement Plans are a major source of income for the retirees and the older adults. More and more aged Americans are opting for these plans to have that financial stability even in the post retirement period. In order to get the best deals out of your retirement plans, you need to have an idea of the various benefits and act accordingly. They can be a very good source of income.
There are a number of retirement contribution plans that you can opt for. They provide you with various benefits and are also tax free. Some of the most preferred contribution retirement plans include:
Individual Retirement Account: It is one of the most preferred retirement accounts that are available in the US. These are really lucrative and you can also enjoy tax exemptions through these. These are also known as IRA accounts and are of various types. Usually, there are two types of IRA accounts: Traditional IRA and Roth IRA. The contributions that you make in the account are tax exempted unless you withdraw the money. If you make withdrawals before the stipulated time period, you have to pay 10 % as penalty and tax rates are also applicable on the amount withdrawn.
401 (k) accounts: 401k plans are also very popular among American retirees. These are defined contribution employer sponsored plans which provide you with long term benefits. Your employer can also provide you with 401k matching contributions. The contributions that you make into your plan are tax deferred as well until you withdraw them. There are various types of 401k plans such as Traditional 401k plans, Roth 401k plans, and Safe Harbor401k plans and so on.
403 (b) plans:Non-profit employers, self employed ministers, public education organizations and other non profit organizations can opt for the 403b plans. The money that is put into the plan is only taxable after one withdraws it. In the present scenario, the 403 (b) plans also include the Roth contributions or after tax contributions. However, unlike other plans, the employer contributions can be withdrawn before you reach the age of 59 ½ years.
In addition to these, there are also some more contribution retirement plans. Some them are 457 plans, SARSEP, Keogh plan and so on. All these plans provide you with good benefits and you can also enjoy tax exemptions.
So always go for some Retirement Planning and enjoy secure and financially stable post retirement period.
Find all the different types of Annuity Investment Options here:
Fixed Annuities: If you are looking for a guaranteed rate of return, may be in one to ten years, fixed annuities can be the solution. Fixed annuities are invested primarily in high-grade corporate bonds and government securities.
Market Value Adjustment: The annuity is somewhat similar to the Guaranteed Return Annuity. The only difference is that there is no guarantee of funds if rates are high and then you need to end or surrender your contract.
Guaranteed Return: This is a fixed annuity that guarantees almost 100% return of your investment. The interest rate does not vary and you can surrender your contract if your initial investment gets depleted due to market variations.
Variable Annuities: If you want to invest in specific funds or into sub-accounts, you can opt for variable annuities. These sub-accounts vary according to the prevalent market rate.
For more information, visit the annuity segment of http://www.sec.gov/answers
Conservative Type: This type is for money market, guaranteed fixed accounts and government bonds.
This is for small capital markets funds, mid capital markets funds, large capital markets funds, capital appreciation, aggressive growth, emerging markets funds and growth markets funds.
Special type variable annuities are actually living benefit annuities.
This offers you a bonus option of 3 to 5%. With bonus annuities, it is easy to take out your money. All the broker needs to do is agree and reduce his commission and you receive the bonus in return. This annuity will take at least seven years to mature. But, this annuity plan has penalties for early withdrawal.
In a deferred annuity, you will receive payments starting at retirement. You can invest either in a lump sum or make payments over a specified length of time. Also, you can invest in either fixed or variable type accounts. These funds grow tax-deferred till the time you start receiving funds.
You will start receiving payments immediately upon investing in the annuity. This is the perfect choice for you if you need immediate income from an annuity. You have the options of a fixed payment that does not change or a variable payment that is based on the annuity’s performance.
So just do your Retirement Planning and get the benefits of Annuity Investment Options.