Is Retirement Inside of Your Scope?

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Completely deductible from salary charges if no retirement arrangement at work. ... The 5 year sitting tight period for expense free withdrawal of income starts with the year of the ...

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Is Retirement Within Your Reach?

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Is a retirement arrange truly important?

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Your Retirement Goals What's your decision? Resign by age ? Work low maintenance? Travel? Purchase home in hotter atmosphere? Diminish way of life? Keep up or increment current way of life?

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Which one will you be driving when you resign?

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When do you plan to resign? $1 $4 How much to spare? Age 55 Age 35

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How long will your retirement last?

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What will retirement cost?

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What are your wellsprings of retirement salary?

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Sources of Retirement Income Company Retirement/Pension Plans Social Security Individual reserve funds Tax conceded or assessable Part time work

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How much have you as of now put aside for retirement?

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Estimating the Amount to Save Retirement wage objective Social Security and Pension wage Additional pay required Value of advantages at present claimed Revised add up to spare

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Retirement Calculators

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Social Security Contribute for 40 quarters Replacement rates between 59% and 24% relying upon pay earned Collect full advantages at assigned retirement age

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Full Retirement Age by Year of Birth Year of Birth Full Retirement Age 1937 & earlier 65 years 1938 65 years, 2 months 1939 65 years, 4 months 1940 65 years, 6 months 1941 65 years, 8 months 1942 65 years, 10 months 1943 - 1954 66 years 1955 66 years, 2 months 1956 66 years, 4 months 1957 66 years, 6 months 1958 66 years, 8 months 1959 66 years, 10 months 1960 & after 67 years

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Check Social Security Records SSA will consequently mail your announcement of retirement, inability & survivor benefits 90 days before your birthday Use "Asks for Earnings and Benefits Form" from Social Security office or call 1-800-772-1213 or counsel site Save IRS W-2 Forms

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Retirement Plans Company Retirement Plans Salary Reduction Retirement Plans Individual Retirement Accounts (Traditional or Roth) Plans for the independently employed

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Contributions with pre-assess dollars brings down assessable wage.

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Maximize profits by your Retirement Plans Begin commitments when possible. Make greatest contributions allowed, if conceivable. Pick speculations that compensation high profit

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Saving in a Tax Deferred versus a Taxable Account Years 10 20 30 40 Taxable Account $ 24,420 $ 59,201 $108,740 $179,279 Tax Deferred $ 26,414 $ 69,414 $139,679 $253,679

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Individual Retirement Accounts Tax-conceded retirement program Must have earned pay or support Contribute up to * : $4,000 in 2005-07 $5,000 in 2008 * Amounts indicated are for people. Sums twofold for couples.

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Traditional Individual Retirement Accounts Fully deductible from salary charges if no retirement arrange at work. On the other hand May be in part or completely deductible in light of Adjusted Gross Income.

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Deductible IRA Income Limits

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Deductible IRA Contributions Reduce assessable pay Report on 1040 tax document

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Traditional Non-deductible IRA Contributions File IRS Form 8606 with Federal Tax return Retain duplicate forever

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Investing in Traditional IRAs Check yearly support charges. As IRA develops in esteem check whether expense can be expelled. 10% punishment in addition to charges on sum pulled back before age 59 1/2.

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Roth IRA Contributions made with after-assessment dollars No obligatory age for withdrawals No compulsory age restrict for commitments Contributions (after-duty dollars) constantly accessible for withdrawal without punishment

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Roth IRA Rules Withdrawals of profit are not exhausted if… Account is 5 years of age and You are no less than 59 ½ or Earnings up to $10,000 are being used for first time home buy or Higher instruction for self, family & grandchildren

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Roth IRA Contributions Make commitment to Roth IRA until April 15 for earlier year. The 5 year sitting tight period for tax exempt withdrawal of income starts with the year of the main commitment. Standard IRA stores changed over to Roth IRA must stay no less than 5 years or a 10% punishment will apply.

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Investing in IRAs Don't have $4,000 at the same time? Consider making programmed regularly scheduled installments from financial records or finance reasoning.

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Investing In An IRA Contributions held in a custodial account Accounts can be at any monetary institution, bank, credit union, mutual support organization, financier account. Contribute for exceptional yield.

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Timing IRA Contributions Make commitments as ahead of schedule in year as could be allowed Can make past year's commitment until April fifteenth, however tell account caretaker it is for the earlier year

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IRAs - An Example of Return on Investment Contributions made just between ages 22-30 (9 years) $2,000 contributed every year Total venture of $18,000 At a loan fee of 9% by age 65 will have $579,471

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IRAs - An Example of Return on Investment Contributions made just between ages 31-65 (35 years) $2,000 contributed each year Total speculation of $70,000 At a financing cost of 9%, by age 65 will have $470,249

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E. M. I. L. Y. Early cash resemble yeast, it helps your mixture rise!

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IRA Direct Transfers – exchange of IRA assets starting with one IRA caretaker then onto the next

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How to spare $3,000 every year

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Finding Money to Save some espresso at $1.00/container x 5 days x 50 weeks = $250/yr. One soda at $1.00/every x 5 days x 50 weeks = $250/yr. 2 video rentals/week @ $3.00 every x 50 weeks = $300/yr. One fast food feast/week @ $5.00 = $250/yr. Add up to SAVED = $1,050/year Other thoughts?

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Retirement Planning Has Changed! More self-coordinated No "ensures" Living longer Portable arrangements Inflation & tax collection

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Think of retirement as an excursion - take half as much stuff and twice as much cash!

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Is Retirement Within Your Reach?