The main difference between a traditional and Roth IRA is when you pay income taxes on the money you put in either plan. With a traditional IRA, you pay the taxes when you withdraw money in retirement. With a Roth IRA, it's the opposite; contributions into a Roth IRA account are made with after-tax dollars. Another difference is while nearly anyone with earned income can make contributions into a traditional IRA, there are income limits for contributing into a Roth IRA.
With a traditional IRA, you must start withdrawing money by the time you reach 70 1/2 years of age. In contrast, with a Roth IRA you can leave the money in for as long as you want.
There are four options for a 401(k) plan with a previous employer: Keep your existing account with your former employer, roll over the money into an IRA, roll over into a new employer’s plan, or cash out. If you choose the option to roll it over to an IRA, there is no penalty.
It's important to make an informed decision. Learn your 401(k) rules, specifically, whether you can keep the money in your current plan plan or roll it into a new employer’s plan.
· Compare the fees and expenses of the investment options in your plan with those in an IRA. · Consider the potential tax impact. · Think about managing your various accounts. · Speak to one of one of our financial specialist to help evaluate your decision: 408-401-1513
Life insurance is a contract between an insurance policy holder and an insurance company that promises to provide beneficiaries with a certain amount of money upon the death of the insured person. In return, payments called premiums are made to the insurance company either periodically or as a lump sum.The premium amount is based on factors such as medical history, gender, age, and dollar amount of insurance purchased. In the event of the passing of the insured, life insurance provides money directly to beneficiaries.
This money can be used for:
- Making up for lost income
- Paying off household debt
- Paying for funeral and other related expenses.
The advantage for the policy owner is peace of mind, in knowing that the death of the insured person will not result in financial hardship for loved ones.
There are two main categories of life insurance:
Term life insurance offers protection for your loved ones for a specified period of time. Term policies pay benefits if the insured passes away during the period covered by the policy.
Whole life insurance policies do not expire and are intended to protect loved ones permanently as long as premiums are paid. Whole life policies are life insurance you don't have to die to use, can pay for hospital and medical fees. It can provide the insured with life time income and long term care.
One of the great advantages of life insurance is that it can be paid to your family immediately. It is important to be specific with wording beneficiary designations as being too vague such as listing "wife of the insured," can result in an ex-spouse getting the proceeds. However, being too specific as in naming specific children may exclude children born later on. Though changing beneficiary designation is not a difficult task, it can often slip your mind. It is a good idea to always name a contingent, or secondary, beneficiary just in case you outlive your first beneficiary.
Due to the various issues involved, an agent can be an excellent source of information to help you properly set up your beneficiary designation.
Health insurance is insurance against the risk of incurring medical expenses among individuals. A health insurance policy is a contract between an insurance provider and an individual. The contract can be renewable or lifelong in the case of private insurance, or be mandatory for all citizens in the case of national plans. The type and amount of health care costs that will be covered by the health insurance provider are specified in writing, in a member contract or "Evidence of Coverage" booklet for private insurance, or in a national health policy for public insurance.
Open enrollment for 2018 Individual Health Insurance will begin on November 1, 2017 and end on December 15, 2017. All plans will be effective January 1, 2018. After December 15, enrollment and plan changes will only be possible for those who experience a qualifying event.
The best time to enroll for Medicare is during the 7 month enrollment period around your 65th birthday. This enrollment window includes the month you turn 65 as well as the 3 months prior to that month and three months after. Enrolling in the three months before the month you turn 65 would be preferable to ensure that you have Medicare coverage by the time you turn 65.
Generally, early withdrawal from an Individual Retirement Account (IRA) prior to age 59½ is subject to being included in gross income plus an additional 10 percent tax penalty. Also consider if that additional retirement money bumps you into the next tax bracket, which could affect Social Security taxes and other considerations.There are exceptions to the 10 percent penalty, such as using IRA funds to pay your medical insurance premium after a job loss.
Please feel free to contact Golden Trust at 408-401-1513 for free consultation with one of our retirement planning specialist to make the best decision.