When You Buy an Annuity What to Look For In the Insurance Company

When you buy an annuity you enter into a long-term relationship with the insurance company that offers the product. For this reason, your primary consideration when comparing annuity products is the financial strength of the insurance company behind the product.
An annuity contract can last for decades, and you need a financial partner that will be around

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Get an Annuity to Meet Your Goal and Financial Objective

When you shop for an annuity look for one that is right for your goal and objective.
High Level of Guaranteed Income Now
If your objective is to generate the highest possible amount of guaranteed monthly income starting now, you will want to look at a single-premium immediate fixed annuity. Single premium means that you are paying for

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Investing When You Believe Inflation Is A Risk To Your Portfolio

When you believe inflation is a risk for your portfolio you can move money into some of these investments to protect your wealth.
Treasury Inflation-Protected Securities
Rising inflation is especially harmful to investors in fixed-income securities, as the purchasing power of a bond’s principal amount, usually $1,000, is lower at maturity when interest rates are higher than

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Retirement Accounts - The Benefits of Regular Investing

These days, many Americans are assuming responsibility for their financial security during retirement. Fortunately, there are different types of retirement accounts — including IRAs and employer-sponsored 401(k) plans — that provide benefits not offered by regular, fully taxable accounts.
Each can help you focus on the future and begin laying the groundwork for a financially secure

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Q&A: The Roth IRA Conversion - How to Convert to a Roth and Why

What are the differences between a traditional IRA and a Roth IRA?

With a traditional IRA, your contributions are generally tax-deductible, and your account can grow tax-deferred over time. Later, when you take withdrawals in retirement, withdrawals will be taxed at your ordinary income tax rate. And once you reach age 70½, you’ll be required to

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Investment Risks to Avoid

Some investments have risks to avoid.
Leveraged Funds
Funds that use futures and options try to amplify their returns. They try to return two to three times the daily returns of their target index. The funds mirror daily returns, not long-term performance.
Natural Resource Investments
Fake oil deals show up when the price of gas or oil begins to soar.
Gold and Gold

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Balancing Retirement and College Saving

When you’re putting money away for college and retirement simultaneously and both goals are near, you might be tempted to split the savings between a 529 account and an IRA or 401(k).
If you near retirement the retirement account should get the bulk of your saving dollars. Especially when you consider that money withdrawn from

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Timing a Roth Conversion

The many variations of retirement accounts makes building wealth a bit complicated. Adding to the complexity is the issue that many retirees and retiree-want-to-be’s face: when is it advantageous to convert a non-Roth IRA to a Roth IRA?
The best time to do the conversion is when the market has tanked because when you roll

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Immediate Fixed Annuities

When households have investment assets and are planning to augment their cash flow with an income stream from those investments annuities offer one option.
To use an annuity typically means to make a one-time payment to an insurer for the promise of receiving regular payments at a defined rate of interest.
Since an annuity is an insurance

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Use an ETF to Build Net Worth

To build net worth you want most of your investing dollars going to work for you. To do that you want to reduce investment expenses. There are several options that allow you to invest at low cost. One of these is the use of an ETF.
An ETF is an exchange-traded fund.

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Stocks in Retirement Accounts

Whether to keep stocks in retirement accounts is an important question. The answer partly depends on whether the stocks are directly owned or whether you are investing in stocks through a mutual fund.
If the stocks are individually owned then certainly ownership outside of a retirement account makes sense. With direct ownership you are

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Retirement Accounts – Roth for your IRA or 401(k) – Which Type is Best?

There are so many retirement accounts to choose from. Which one is the best one?
When comparing how taxes are deducted the Roth version is the opposite of the traditional non-Roth account. With a Roth version of the IRA, 401(k) or 403(b) you get your tax break when you withdraw the funds.

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Roth Conversion Tax Calculation

To convert a regular IRA or 401(k) to a Roth IRA (assuming 28% tax bracket) use these steps to look ahead at your tax bill:
Step 1: Enter the total value of all of your IRA and 401(k) funds (non-Roth) (Example: $150,000)
Step 2: Enter the total of your nondeductible contributions for the year (Example:

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Index Funds or Managed Portfolio

One of the biggest investment decisions we all make is whether to invest passively or actively, regardless of whether we invest directly or hire somone to invest for us.
Mutual funds and exchange traded funds (ETFs) give us choices, including whether our money is actively managed.
One of the best, low-cost moves a passive investor can make

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