Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.As I discussed in last week’s blog, retirement assets, including 401(k)s, IRAs, etc., comprise a large portion of the average American’s wealth. Planning for these assets is critical, not just due to their value, but also due to their special nature.Traditional IRAs and 401(k)s and the earnings on them are tax-deferred. Roth IRAs and 401(k)s are tax-free. However, … [Read more...]
Planning for Retirement Plans and IRAs: Beneficiary Designation
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.Retirement assets, including 401(k)s, IRAs, etc., comprise a large portion of the average American’s wealth. Planning for these assets is critical, not just due to their value, but also due to their special nature.Retirement plan assets may be tax-deferred (like a traditional IRA or 401(k)) or tax-free (like a Roth IRA or Roth 401(k)). But, there may be very good … [Read more...]
Basics of Estate Planning: Choosing a Roth or Traditional IRA (or 401k)
Roth and Traditional accounts each have their merits. This blog examines the differences between the two.Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.This is another in a series of blogs on the basics of estate planning. In this blog, we’ll look at the differences between a Roth and a traditional IRA (or 401k). We’ll also look at considerations in choosing between them.With a traditional IRA (or 401k), … [Read more...]
Veterans: Develop a Cogent Plan for Aging
Individuals who spend some time in the service may be entitled to certain benefits that can be very useful later on in life. For one, if you serve for at least 20 years in the military, you become entitled to a retirement pension. This coupled with your Social Security benefit could go a long way toward providing you with the ongoing income stream that you need to enjoy your retirement in comfort.Another benefit that is often overlooked is the Veterans Aid & Attendance special pension. … [Read more...]
Is Retirement Planning Really Important?
As you are going through life working and paying taxes, you may not concern yourself with retirement planning. After all, you are paying into the Social Security program, so you will have a source of income as a senior citizen. You may also be contributing into the 401(k) plan that your employer offers, so you will have a retirement nest egg accumulated by the time you reach your sixties.When it comes to health care insurance, you will qualify for Medicare at the age of 65, so you won't have … [Read more...]
Will Medicare Cover Everything?
Retirement is not something that will automatically fall into your lap. Yes, if you worked steadily throughout your life, you will qualify for Social Security and Medicare. However, careful retirement planning is important if you want to enjoy your senior years to the fullest.The government programs that are in place to provide for senior citizens are best viewed as safety nets. If you expect too much from these programs, you may find yourself in a difficult situation during the latter … [Read more...]
Retirement Planning FAQs: Can I Work When I’m On Social Security?
Retirement planning is a must if you want to be in a position to enjoy your golden years to the fullest. It can take some sustained effort over an extended period of time to accumulate the resources that you will need, and the sooner you get started, the better.You should understand everything that you need to know about Social Security when you are engaged in your retirement planning efforts. If you were to visit the Social Security website, you could get a statement that will give you an … [Read more...]
When Will I Receive Social Security?
There is a lot to take into consideration if you are preparing for your retirement years. You should understand what to expect from government benefits, and what you cannot expect. With this in mind, we will look at Social Security in this post.Qualifying for Social SecurityWhen you are working and paying taxes, you invariably see that FICA is consuming a significant portion of your pay. The good news is that you are paying into the Social Security program when you pay these taxes.You get … [Read more...]
How Does an Individual Retirement Account Work?
We specialize in estate planning and elder care, but your estate plan should be contained within a broader, long-term financial plan. If you want to be able to enjoy your golden years to the fullest, you should have a solid retirement plan in place. For many people, an individual retirement account will be part of the plan.There are two different types of individual retirement accounts that are typically utilized. Let's look at the details.Traditional Individual Retirement AccountsWith a … [Read more...]
Three Social Security & Medicare Myths
Retirement planning is something that many people ignore until it is too late. A belief in certain myths about Social Security and Medicare is at the root of some of the procrastination and cavalier behavior.We would like to look at three of these myths here.1.) Social Security will provide me with a solid income during my retirement years.Unfortunately the above statement is patently untrue for most people.We are all aware of the cost-of-living here in the greater San Jose and Santa … [Read more...]
