Jump-Start Your Retirement Plan, September 2015
Kiplinger is teaming up with the National Association of Personal Financial Advisors (NAPFA), whose planners will answer questions on retirement planning and other financial challenges. Submit your questions here and get free personalized financial advice on Thursday, September 17, from 9 a.m. to 5 p.m. ET.
3rd & 7 37yd
3rd & 7 37yd
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Hi Jon. You have come to the right place! The first thing you want to do is understand how and how much your advisor is being paid. Some get paid on commissions from the products they sell while others charge you a fee. Some do a combination of both. Fee advisors may charge you a percentage on assets that they manage for you (1% is a pretty good starting place) while others charge you by the hour or project. The advisors on this board are all fee only so you know what we think is best. Go to www.napfa.org and check out advisors in your area by visiting their web sites. When you see one who appears to meet your needs and budget, CALL and learn more and set up an appointment. A lot of advisors offer a no cost introductory meeting. If at the meeting, you like the advisor and trust him and are confident that he can do the job you need and you are comfortable with how and how much he charges, you found your advisor. At the NAPFA website, there is a questionnaire that you can use to help find the advisor who is right for you.
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Rose, you should be to contribute to 529 accounts that your children have set up if you stay under the $14,000 annual gifting limit per person. Now depending upon which State you are in will determine whether you will want to set up separate 529 plans for grandchildren to contribute to for State tax deductions.
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Hi, Jon. Here are a few things you want to look for when choosing an adviser:
5 Key Credentials to Seek in a Financial Adviser
www.kiplinger.comFive key credentials every financial adviser should have. -
This might be of interest, Rose:
6 Ways to Help the Grandkids Pay for College
www.kiplinger.comCovering educational expenses is one of the best gifts you can give, if you go about it the right way. Here are six strategies. -
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Ed,
Spouse may treat as his/her own,
or
Distribute over spouse’s life using Table I*
•Use spouse’s current age each year,
or
Distribute based on owner’s age using Table I
•Use owner’s age as of birthday in year of death
•Reduce beginning life expectancy by 1 for each subsequent year
•Can take owner’s RMD for year of death -
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Ed, She would have multiple options. Look at the upper left part of this IRS chart:
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Jane- "If your widow or widower remarries after they reach age 60 (age 50 if disabled), the remarriage will not affect their eligibility for survivors benefits."
Survivors Planner: Survivors Benefits For Your Widow Or Widower
Social Security delivers a broad range of services online at socialsecurity.gov. We have a proud history of protecting the integrity of our programs and service to the public. -
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Hi Nicole. Yes, you can use part of the money to pay the taxes. In our experience, it is better to pay the taxes separately because more of your money in the IRA remains invested. It's hard to answer whether it is a bad idea, because we do not know the details. You should ask someone to do an analysis so you can make an informed decision.
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If your spouse dies, you can get widow’s benefits if
you’re age 60 or older. If you’re disabled, you can get
widow’s benefits as early as age 50. Your benefit amount
will depend on your age and on the amount your deceased
spouse was entitled to at the time of death. If your spouse
was receiving reduced benefits, your survivor benefit will
be based on that amount.
If you’re a widow with children, you may be eligible for
a widow’s benefit at any age when you’re caring for a child
who is younger than 16, or who is disabled and entitled
to benefits. As a widow, you also may be eligible for
Medicare at age 65.
If you remarry before you reach age 60 (or age 50 if
disabled), you can’t receive widow’s benefits as long as
that marriage remains in effect. If you remarry after you
reach age 60 (or age 50 if disabled), you’ll continue to
receive benefits on your deceased spouse’s Social Security
record. However, if your current spouse is a Social Security
beneficiary, you should apply for a spouse’s benefit if it would
be larger than your widow’s benefit. You can’t get both.
If you’re also entitled to retirement benefits based on
your own work, you have other options. Ask a Social
Security representative to explain the options, so you can
decide which would be best for you. -
Jane - It's complicated but if you were married more than 9 months to your new spouse and they then passed, you would probably be able to contact SSA and ask them to give you whichever spouse's survivor benefit was higher. Here are some of the eligibility rules. www.ssa.gov
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Ken, two rules here. One is earned income test for possible reduction of benefits if collecting before your full retirement age. Inheritance would not impact this test. The second test is taxation of Social Security benefits due to modified adjusted gross income. If the inheritance includes distributions from IRAs or annuities this could increase your taxable income. Normally inheritance of other assets isn't included in taxable income for the inheritor.
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Emily, He must have earned income in order to contribute to any IRA. If he has a part time job and he spends everything he makes, you can still "give" him money to contribute to a an IRA. David is right when he says you can gift up to $14,000 but don't confuse that with the contribution limitations on the IRA.
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How to Make Long-Term Care More Affordable
www.kiplinger.comWe help you navigate the maze of choices to get the best deal. -
Hello,
I am looking for some good advice. I am 39 years old and am getting a very late start on retirement savings.. I only have $1116 in a 401K from an old job. What recommendations can you make to someone like me? Is it possible for me to make up for lost time, and if so, what should I do? Thank you!