How You Can Tap Your 401k With No Penalty For Baby Boomers

Is your retirement just around the corner and you’re concerned on where you’ll be able to derive your monthly income?  You may have a pension,or you may have Social Security, but if you are retiring early then you’ve most definitely been more diligent in your investment tracking and you know that these might not be [...]

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How to Rollover Your 401k Into a Roth IRA

by Junior Boomer on February 9, 2010

If you are a baby boomer and you have either lost your job, left your job for a new one or retiring, then you have an important choice to make regarding your 401k plan.  If retirement is here (Congratulations!) then the most common approach is rolling over the 401k into a traditional IRA.  This process is very easy and allows you to continue the tax deferral process.  With the  AGI limits on Roth IRA conversion now being non existent in 2010, you now have the choice to do a direct rollover of your 401k into a Roth IRA.  There, of course, is a tax consequence for doing so.  Does rolling over your 401k into a Roth IRA make sense for you?  Let’s find out.

How to Rollover Your 401k Into a Roth IRA
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How To Avoid Alternative Minimum Tax

by Junior Boomer on February 8, 2010

The IRS is always looking for ways to get in your wallet and the alternative minimum tax is no exception.  The AMT was initially created to go after saavy high income earners that would take advantage of all the tax breaks they could.   The tax was to make sure that they would pay a “minimum” tax.  What has evolved over the years is that as inflation has moved many middle class income earners into the range of the beloved AMT.   If you suddenly find yourself subject to the Alternative Minimum Tax, here are some tips to avoid it.

How To Avoid Alternative Minimum Tax
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Do You Need to Buy Critical Illness Insurance?

by Junior Boomer on February 5, 2010

Ever hear of critical illness insurance? This isn’t standard-issue long term disability income  insurance, but a cousin of sorts. With people living longer, it is a risk management option entering more people’s lives. But the question remains, do you need to buy it?

Do You Need to Buy Critical Illness Insurance?
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The notable wrinkle about this insurance vs. other types of insurance that you need is that the insurer issues you a lump sum while you are alive.
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How to Work out your Budget with Your Kids

February 4, 2010

This is a guest post bys Debbie from YesDebtFree.
Living a debt free life can be emphasized more by leading a simple life. Simpler life does not mean cutting down on your expenses, but removing all that is useless. You have to be saner when you are spending your money. Today if you save, it [...]

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2010 Tax Law Changes

February 3, 2010

As with each new year brings new opportunities it also brings a slew of tax law changes.  2010 is no different. Certain tax provisions are set to sunset, retirement savings have changed little, and high wage earners are most likely to take a hit. Here are the tax law changes of 2010 that you’ll [...]

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Roth IRA Withdrawal Rules, Options, and Penalties

February 2, 2010

Investors love the Roth IRA for the potential tax-free income at retirement.  Who doesn’t like skimming the government from paying more tax? The rules of the Roth IRA make it a great saving tool because you have more flexibility when you can withdraw the funds.  Retiring early or an unexpected emergency make the Roth IRA [...]

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Partnership Plans for Long Term Care

February 1, 2010

Ahelping hand for a pressing need. With the baby boom generation maturing, numerous studies and articles have pointed out the rising need for long term care. Some state governments have directly responded to it.

photo credit: simaje
Now, many states have created partnership programs to encourage their residents to purchase LTC insurance coverage. It only makes [...]

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Let it Snow!

January 30, 2010

Here in the Midwest, we just started having 40 degree weather again, just to get blasted with 8 inches of snow. So much for an early spring! Here’s a quick roundup of some good reads of the week.

photo credit: zoetnet

Did you have trouble Understanding the Difference between Multi-Level Marketing Programs and Pyramid [...]

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There Are No Free Lunches

January 29, 2010

When someone invites you to a lunch or dinner financial seminar, are they trying to sell you something? Probably. Is it a scam? Not necessarily. It all depends. Often someone (for example, an insurance agent) will sell a product via a seminar or an invite-only lunch or dinner gathering. Sometimes they will hold a “meeting” [...]

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Should You Annuitize with an Immediate Annuity?

January 27, 2010

Retirement is here and it’s time to start planning an income strategy.  You have your mutual funds, stocks, bonds, CD’s and annuities.  Does it make sense to annuitize your annuity? It just might be. Here’s why baby boomers are choosing immediate annuities.
The fear of outliving your savings is a scary reality. What if you could [...]

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Roth IRA Conversion Calculators: Should You Convert?

January 26, 2010

2010 is the year of the mighty Roth IRA conversion and many boomers are wondering if it’s the right thing to do.  The sound of tax-free money is a sweet lullaby, but is it worth the up front tax expense?

photo credit: alancleaver_2000
Everybody’s situation is different and it’s hard to say if it’s right for [...]

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