Don’t Touch the Principal — live off the interest…. Why This is Number One of the 5 Giant Myths of Retirement Planning according to Forbes.com

Don’t Touch the Principal — live off the interest…. Why This is Number One of the 5 Giant Myths of Retirement Planning according to Forbes.com

http://www.forbes.com/sites/nextavenue/2014/09/22/5-giant-myths-of-retirement-planning/

Heard of these myths? Tell us your experience and share other myths or misunderstanding you’ve come across related to Retirement Planning.

Wanting to Retire Early? See how Time Money relates maintaining your home to ultimate financial freedom.

Wanting to Retire Early? See how Time Money relates maintaining your home to ultimate financial freedom.

http://time.com/money/3510115/retire-early-most-important-move/

Have you or someone you know experienced this? Tell us about it!

How Long Will Your 401(k) Funds Last In Retirement?

“With pensions increasingly rare and the future of Social Security uncertain, many people rely on their 401(k) plans to provide lifetime income once they retire. The problem with this strategy is that no one knows just how long that lifetime will be.

And that’s not the only thing that’s uncertain when it comes to retirement planning…”

If you’re not sure whether or not your funds will last, skip over to this detailed article where Nancy L Anderson outlines how to plan for a lifetime of income in an uncertain environment.

http://www.forbes.com/sites/nancyanderson/2014/10/09/how-long-will-your-401k-funds-last-in-retirement/

 

Are you a Financial Advisor? Do you blog about investing? Why you must STOP!

Why You Should Stop Blogging About Investing

Blogs are an excellent tool to connect directly to your clients. But don’t write about investing; it’s monotonous and BORING to say the least!!

Here, Megan Elliot tells you WHY and provides you with other options.

We’d love to hear from you. Tell us what you think about Megan’s stop-blogging-about-investment points…

Leave your comments!

http://www.advisorperspectives.com/newsletters14/39-stopblogging.php

Melody Juge Explains Why General Calculations for Solid Retirement Planning Isn’t Enough

Find out why Melody Juge, managing director at Life Income Management, tells us that

“… knowing what your living expenses are in general isn’t enough”

IN –> 9 key criteria for creating a sound retirement plan

http://www.marketwatch.com/story/9-key-criteria-for-creating-a-sound-retirement-plan-2014-10-03

Do you agree with Melody? How do you calculate your living costs AND plan for potential unforeseen ancillary expenses?

 

Is the Government Planning a Power Grab on YOUR Retirement Accounts?

Marietta, GA, September 24, 2014 – During a recent hearing on Capitol Hill with the Senate Finance Committee, the old rumors and fears of taxing retirement accounts were reborn. According to the hearing information released from the Senate Committee on Finance, Chairman, Ron Wyden (D-Ore), who wants retirement savings on the tax reform agenda, used a recent Governmental Accountability Office, analysis to support claims that:

  • incentives for savings in the tax code are not getting to the people who need them, and
  • something is out of whack with a system that he said taxpayers are subsidizing at a current $140 billion/year.

Additionally, the same GAO analysis that the Chairman referenced contained the following data

  • 9,000 of population have IRAs greater than $5 million
  • 43 million of population have IRAs less than $5 million

Sen. Orrin Hatch (R-Utah), Ranking Member of the Senate Finance committee claimed that to consider the Chairman’s claims are a “political strategy by some in Congress to turn pension policy into just another partisan battleground”.

 

The committee noted that “IRAs were never intended to become tax shelters for millionaires – they’re designed to help typical Americans save for retirement.”

The committee’s release goes onto say: “As the Finance Committee continues to work on modernizing the tax code, it should take a good look at fixing this issue. With limited resources, it’s crucial to use taxpayer dollars wisely.”

 

This language indicates that they don’t want to allow IRAs to be tax shelters, which in turn implies taxing them because it’s “crucial to use taxpayer dollars wisely”.

 

Torrid Technologies’ founder and attorney Timothy Turner says, “The committee seems to be leaning towards the idea of eliminating or reducing the ability of IRAs to shelter money for retirement. They are doing this under the guise that it’s somehow unfair for some people to have saved so much money, but the problem is once you go down this dangerous route where will they stop?  How big or small of an account do you have to have before they eliminate the tax shelter?  U.S. citizens don’t want this type of intrusion into their retirement accounts.”

 

For more information about the before mentioned U.S. Senate Committee on Finance hearing, please visit (http://www.finance.senate.gov/newsroom/chairman/release/?id=6605d837-6ab3-4bf8-938b-ce327bea119b)

 

About Torrid Technologies

Torrid Technologies offers a keep it simple retirement planning tool that allows you to hold onto a strong retirement future, even if the powers that be in Washington try to make a grab for it.  You can download a complimentary demo copy from their website at:  http://www.torrid-tech.com

 

 

 

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Annuities allowed in Retirement Plans

10044867-300x188The U.S. Treasury department has issued a rule allowing deferred-income annuities inside retirement plans.  One interesting twist is that the rule excludes the annuity’s cash value from the account balance that is used to determine Required Minimum Distributions.  So you could put some of your retirement plan into an annuity, but not take the income yet, and avoid the RMDs.

Unfortunately, big government wants to cap the benefits of this new rule by setting a cap on the amount you can put into the annuity.   You can put up to 25% of your 401(k) or IRA account balance or $125,000 — whichever is less — into a qualifying longevity annuity. That dollar limit will be adjusted for cost-of-living increases.

Read the full Investment News article: Treasury allows longevity annuities in retirement plans

What do you think of this new rule?  Comment below.

Annuities allowed in Retirement Plans

10044867-300x188The U.S. Treasury department has issued a rule allowing deferred-income annuities inside retirement plans.  One interesting twist is that the rule excludes the annuity’s cash value from the account balance that is used to determine Required Minimum Distributions.  So you could put some of your retirement plan into an annuity, but not take the income yet, and avoid the RMDs.

Unfortunately, big government wants to cap the benefits of this new rule by setting a cap on the amount you can put into the annuity.   You can put up to 25% of your 401(k) or IRA account balance or $125,000 — whichever is less — into a qualifying longevity annuity. That dollar limit will be adjusted for cost-of-living increases.

Read the full Investment News article: Treasury allows longevity annuities in retirement plans

What do you think of this new rule?  Comment below.

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