Comments on: Click to Ask a question >> http://www.theretirementpros.com/blog/2007/12/ask-the-experts/ Retirement Planning Blog Topics: Social Security, Investments, Safe Money advisory, Retirement Video Seminars Tue, 18 May 2010 21:04:03 -0400 http://wordpress.org/?v=2.8.6 hourly 1 By: robert http://www.theretirementpros.com/blog/2007/12/ask-the-experts/comment-page-1/#comment-617 robert Thu, 29 Apr 2010 17:39:31 +0000 http://www.theretirementpros.com/blog/?p=8#comment-617 my mother is 77yrs old and is in pretty goodd financial shape. She has $50,000 in savings, $20,000 in checking and around $70,000 in annuities. She places her monthly annuity money into her savings account because she doesnt need to use it as income. Is there a better option for her than annuities? my mother is 77yrs old and is in pretty goodd financial shape. She has $50,000 in savings, $20,000 in checking and around $70,000 in annuities. She places her monthly annuity money into her savings account because she doesnt need to use it as income. Is there a better option for her than annuities?

]]> By: Danny http://www.theretirementpros.com/blog/2007/12/ask-the-experts/comment-page-1/#comment-609 Danny Wed, 17 Feb 2010 02:10:15 +0000 http://www.theretirementpros.com/blog/?p=8#comment-609 After finally retiring and turning 62, I decided to start tapping my 401K which had remained with my former employer and was managed by Prudential. Now Prudential informs me that I have to pay a $35 processing fee each time I make a withdrawel! This was never disclosed to me and my former employer says the issue is between me and Prudential. Can Prudential do this? After finally retiring and turning 62, I decided to start tapping my 401K which had remained with my former employer and was managed by Prudential. Now Prudential informs me that I have to pay a $35 processing fee each time I make a withdrawel! This was never disclosed to me and my former employer says the issue is between me and Prudential. Can Prudential do this?

]]> By: Keith http://www.theretirementpros.com/blog/2007/12/ask-the-experts/comment-page-1/#comment-608 Keith Tue, 02 Feb 2010 21:50:47 +0000 http://www.theretirementpros.com/blog/?p=8#comment-608 I have a 403(b) with my previous employer. I worked for them for one year and made monthly incremental payments into the account. When I left the balance that remained was less than $1000. Now, I have had this account for the past twelve years and the balance at this point is still low, less than $2000. My question is should I just leave this money alone in this account where it is or should I go ahead and remove it; possibly roll it over to my present employer retirement account? or is it really not worth worrying about, for lack of a better term, and just go ahead and have them send the check fo rthe funds to me? Thanks I have a 403(b) with my previous employer. I worked for them for one year and made monthly incremental payments into the account. When I left the balance that remained was less than $1000. Now, I have had this account for the past twelve years and the balance at this point is still low, less than $2000. My question is should I just leave this money alone in this account where it is or should I go ahead and remove it; possibly roll it over to my present employer retirement account? or is it really not worth worrying about, for lack of a better term, and just go ahead and have them send the check fo rthe funds to me?

Thanks

]]> By: DrShelby http://www.theretirementpros.com/blog/2007/12/ask-the-experts/comment-page-1/#comment-603 DrShelby Thu, 03 Dec 2009 21:51:21 +0000 http://www.theretirementpros.com/blog/?p=8#comment-603 Dear Joy, Without knowing a lot more about you and your aspiration, I cannot give you investment advice. The important thing at your age is to <strong>save</strong> some of your income. The Roth IRA is a great idea because in effect you can save a larger amount since it is after tax and then grows tax-free. Systematic savings in a market based investment at your age generally make a great deal of sense since you are dollar cost averaging and have lots of time to weather market fluctuations. Tax advantaged savings include annuities, capital gains (risk) and dividend income (again paid by stocks and can be risky). Tax-free is limited to municipal bonds (lower interest rate than taxable fixed income) but suitability depends on your risk tolerance and tax bracket. If married or have dependents, you may want to investigate life insurance. Sorry I can’t help more but without some extended background I can’t really help you. Regards, Dr. Smith Dear Joy,

Without knowing a lot more about you and your aspiration, I cannot give you investment advice. The important thing at your age is to save some of your income. The Roth IRA is a great idea because in effect you can save a larger amount since it is after tax and then grows tax-free. Systematic savings in a market based investment at your age generally make a great deal of sense since you are dollar cost averaging and have lots of time to weather market fluctuations. Tax advantaged savings include annuities, capital gains (risk) and dividend income (again paid by stocks and can be risky). Tax-free is limited to municipal bonds (lower interest rate than taxable fixed income) but suitability depends on your risk tolerance and tax bracket. If married or have dependents, you may want to investigate life insurance. Sorry I can’t help more but without some extended background I can’t really help you.

Regards, Dr. Smith

]]> By: Joy http://www.theretirementpros.com/blog/2007/12/ask-the-experts/comment-page-1/#comment-602 Joy Wed, 02 Dec 2009 21:04:28 +0000 http://www.theretirementpros.com/blog/?p=8#comment-602 I have a question regarding my retirement account. I am in my mid 20s and work full time for an employer that does not offer a 401k. I already max out my Roth IRA, but I am looking for additional investment vehicles beyond my Roth that may be tax advantaged, if any exist. I earn $60k from my full-time job and make an additional $15k (approx) in freelance income. Would it make sense / would I be eligible to open an S-Corp for my freelance writing business so I can put my additional income straight into a retirement account? Or would I lose so much money from S Corp taxes that this doesn't make sense? Would you recommend that I just put the remainder of my savings into Index Funds and ETFs (which will be taxed at both ends?) I have a question regarding my retirement account. I am in my mid 20s and work full time for an employer that does not offer a 401k. I already max out my Roth IRA, but I am looking for additional investment vehicles beyond my Roth that may be tax advantaged, if any exist.

I earn $60k from my full-time job and make an additional $15k (approx) in freelance income. Would it make sense / would I be eligible to open an S-Corp for my freelance writing business so I can put my additional income straight into a retirement account? Or would I lose so much money from S Corp taxes that this doesn’t make sense? Would you recommend that I just put the remainder of my savings into Index Funds and ETFs (which will be taxed at both ends?)

]]> By: DrShelby http://www.theretirementpros.com/blog/2007/12/ask-the-experts/comment-page-1/#comment-599 DrShelby Thu, 01 Oct 2009 16:52:49 +0000 http://www.theretirementpros.com/blog/?p=8#comment-599 Dear Imani, Without knowing a lot more about your financial situation we cannot give you solid advice about the feasibility of converting your $15,000 qualified account to a Roth IRA. If you think there is a good likelihood you'll need the money in the next few years, it would appear that a Roth is not for you. We would advise you to consult with your financial advisor. Sorry we could not be of more help. Have a great day. Dear Imani,

Without knowing a lot more about your financial situation we cannot give you solid advice about the feasibility of converting your $15,000 qualified account to a Roth IRA. If you think there is a good likelihood you’ll need the money in the next few years, it would appear that a Roth is not for you. We would advise you to consult with your financial advisor. Sorry we could not be of more help. Have a great day.

]]> By: imani http://www.theretirementpros.com/blog/2007/12/ask-the-experts/comment-page-1/#comment-598 imani Thu, 01 Oct 2009 15:56:41 +0000 http://www.theretirementpros.com/blog/?p=8#comment-598 I am single age 54.5 and no longer have a 403b or other retirement plan. I also lost my income property 6/09. I only have a savings account totalling $15,000,and my job(i live in California)my end 2/10. should this money go into a Roth Ira? what should i do? Thanks I am single age 54.5 and no longer have a 403b or other retirement plan.
I also lost my income property 6/09. I only have a savings account totalling $15,000,and my job(i live in California)my end 2/10.

should this money go into a Roth Ira? what should i do?

Thanks

]]> By: DrShelby http://www.theretirementpros.com/blog/2007/12/ask-the-experts/comment-page-1/#comment-585 DrShelby Fri, 28 Aug 2009 15:22:51 +0000 http://www.theretirementpros.com/blog/?p=8#comment-585 Dear David, Unfortunately there is no universal list available. You may find a partial list of large companies that have installed an ISNHW provision but it will not be complete. The only sure way to know is review a copy of the latest Summary Plan Document of the employer's plan. I can say with certainty that very few small employers have the ISNH withdrawal provision and the large companies with the provision stipulate an age of 59-1/2 which is not very helpful to those in retirement's red zone. The really interesting aspect of this topic is that Congress is not considering changing law that allows employers <i>(on advice of brokers and money managers) </i>to stipulate older ages for non-hardship withdrawal while working -- I suppose the lobbying dollars are freely flowing. I've attempted to persuade my Congressional representation to carry this cause but to no avail. Thanks for you question. Dear David,

Unfortunately there is no universal list available. You may find a partial list of large companies that have installed an ISNHW provision but it will not be complete. The only sure way to know is review a copy of the latest Summary Plan Document of the employer’s plan.

I can say with certainty that very few small employers have the ISNH withdrawal provision and the large companies with the provision stipulate an age of 59-1/2 which is not very helpful to those in retirement’s red zone. The really interesting aspect of this topic is that Congress is not considering changing law that allows employers (on advice of brokers and money managers) to stipulate older ages for non-hardship withdrawal while working — I suppose the lobbying dollars are freely flowing. I’ve attempted to persuade my Congressional representation to carry this cause but to no avail. Thanks for you question.

]]> By: David F Franks http://www.theretirementpros.com/blog/2007/12/ask-the-experts/comment-page-1/#comment-583 David F Franks Thu, 27 Aug 2009 22:18:49 +0000 http://www.theretirementpros.com/blog/?p=8#comment-583 Dr Shelby, Where can I get a list of companies that allow in-service 401(k) nonhardship withdrawls?. Dr Shelby,

Where can I get a list of companies that allow in-service 401(k) nonhardship withdrawls?.

]]> By: DrShelby http://www.theretirementpros.com/blog/2007/12/ask-the-experts/comment-page-1/#comment-580 DrShelby Mon, 24 Aug 2009 14:45:37 +0000 http://www.theretirementpros.com/blog/?p=8#comment-580 Dear Chuck, The maximum SS benefits vary by year and at what age they are taken. Rather than give you the various answers, please go to this web site for all the details: <a target="_blank" href="http://www.ssa.gov/pressoffice/colafacts.htm" rel="nofollow">http://www.ssa.gov/pressoffice/colafacts.htm</a>. SS benefits are determined by using the top 35 years of earnings -- as you know the maximum salary against which FICA taxes are withheld increases annually. This information is also on the above web site. For a guide on social security, please view my guide <a href="http://www.theretirementpros.com/eReport_Social_Security.php" rel="nofollow">here >></a> Dear Chuck,

The maximum SS benefits vary by year and at what age they are taken. Rather
than give you the various answers, please go to this web site for all the
details: http://www.ssa.gov/pressoffice/colafacts.htm.

SS benefits are determined by using the top 35 years of earnings — as you
know the maximum salary against which FICA taxes are withheld increases
annually. This information is also on the above web site.

For a guide on social security, please view my guide here >>

]]>