How to Use Technology to Monitor Your Retirement Savings
Your parents probably had to call their financial advisor (which could have been your uncle Ted) or their banker to get advice or information on their retirement savings. They may even have had to drive to the bank or write letters with formal requests to get financial updates. Of course, they may have also just waited, sometimes impatiently, until they received their statements in the mail to learn how their investments or savings were doing. For the anxious investor, the inability to get immediate or current updates on stocks or the market may have been nerve wracking. However, the lack of immediate access may have provided a layer of insulation from the apparent unpredictability of the financial realm.
Traditional vs. Roth IRAs
IRAs can be an important tool in your retirement savings belt, and whichever you choose to open could have a significant impact on how those accounts might grow. IRAs, or Individual Retirement Accounts, are tax-advantaged accounts used to help save money for retirement. There are two different types of IRAs: traditional and Roth. Both kinds of IRAs share many similarities, and yet, each is quite different. Like a traditional IRA, contributions to a Roth IRA are limited based on income. In addition to contribution and distribution rules, there are limits on how much can be contributed to either IRA.
Your Emergency Fund: How Much is Enough?
Have you ever had one of those months? The water heater stops heating, the dishwasher stops washing and your family ends up on a first-name basis with the nurse at urgent care. Then, as you’re driving to work, giving yourself your best, “You can make it!” pep talk, you see smoke seeping out from under your hood. Bad things happen to the best of us, and instead of conveniently spacing themselves out, they almost always come in waves. The important thing is to have a financial life preserver, in the form of an emergency cash fund, at the ready.
February 11- 3:00 PM
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February 13- 11:00 AM
February 13- 11:00 AM
McIntosh Quarterly Book Club:
We find that is it important to have a healthy balance of personal, faith and business goals. Right now the office is reading the 10X Rule: The only Difference Between Success and Failure. This Quarter Nolan picked the book, so read along with us and tell us your thoughts on the pick!
Tax Benefit and Credits: FAQs for Retirees
Lots of questions can come up about income taxes after one has retired. Listed are answers to just a few common questions for retired taxpayers.
What types of income are taxable?
Some common types of taxable income: military retirement pay, all or part of pensions and annuities, all or part of Individual Retirement Accounts (IRA), unemployment compensation, gambling income, bonuses and awards for outstanding work, and alimony or prizes.
What types of income are non-taxable?
A few examples of non-taxable income: veteran’s benefits, disability pay for certain military or government-related incidents, worker’s compensation, and cash rebates from a dealer or manufacturer of an item you purchase.
Why is my pension taxed?
It depends on how the money was put into the pension plan. For example, if all the money was contributed by the employer or the money was not taxed before going into the plan, it would be taxable. When your contribution is from already-taxed dollars, that portion of the pension is not taxed, but must be recovered over your life expectancy.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
Tip adapted from IRS.gov
Have a great February,
The McIntosh Team