Tag Archives: Ira

Form 5498 mailed out in May!

9 May



Liebster Award

26 Mar


Katie, from Ask the Young Professional, nominated me for the Liebster Award! Katie was one of the first people to start commenting on my posts and really provided a lot of support and encouragement (unbeknownst to her). Katie’s blog is great because she blogs about what a lot of us YPs are going through, from financial tips to goal setting, she covers it all.

To accept the award you need to answer 11 questions and, in turn, nominate 11 of your blogging peers.

My 11 Questions:

1.What qualities matter most to you in a job?

For the job that i have, the amount of qualities that matter, is overwhelming. My job (IRA Specialist) is very demanding. Its a small company where we all wear many hats. We work 60 hour work weeks, often give up our week nights and weekends to work. When I look at my calendar and see I have a free weekend, i am ecstatic. The most important ones are dedication, ambition, and loyalty. Everyone that is in my department, wants to be there. Not only do we want to succeed as individuals, we want our peers to succeed, as well as the company as a whole.

2. What is your dream job?

For where I am in my life, my job is ideal. I graduated almost two years ago and up until graduation day, I had no idea where i would be the next month. The idea that I was about to join the real world, with no job, no place to live, TERRIFIED me. I am extremely lucky to have landed the amazing opportunity I did. In the future, my dream job would be to be an executive for the company where i work. Call me brainwashed, but i truly love and believe in what we do!

3. Who are your role models?

Charlotte Beers who wrote  “I’d Rather Be in Charge: A Legendary Business Leader’s Roadmap for Achieving Pride, Power, and Joy at Work”

4. What inspires you?

Feeling useful! I like helping and feeling productive, knowing I can make a difference.

5. What is your favorite quote?

“No two persons ever read the same book”

6. If you could travel ten years back in time, what advice would you give yourself?

Everything is going to be okay!

7. What special or unusual skills do you have?

My most special skill is my attention to detail. Not so much in my writing or in my work, but my attention to detail in people and situations.

8. What is your greatest achievement?

My journey has not finished- but there are many I would consider great: buying my first car, taking the promotion I did, getting my degree.

9. What is the most unexpected fact you’ve learned from your job search?

Network network network

10. What are your best qualities?

I think one of my best qualities is my intuition and my empathy. Maybe its the fact that I grew up with so many siblings but I have always been able to put myself in other peoples shoes. I may not agree with that they think or see but I can understand it.

11. Who would you want to play you in a movie about your life?

This answer will change daily, probably Allison Williams because I am obsessed with her at the moment.

These are the 11 Blogs I’m nominating.

These are the blogs I get the most pleasure from:

  1. Bah Humpug
  2. Go Lea Thompson
  3. Ransom Book Quotes
  4. Awesome People Reading
  5. The books they gave me
  6. Corporatte
  7. Modern day Ettiquette
  8. Young Adult Money
  9. Classy Career Girl
  10. My mission fulfilled
  11. Stuff Grads Like

One month til IRA School

20 Mar

These are the reading materials I am supposed to study with for the next month leading up to IRA SCHOOL in Kansas. Cross your fingers that come May I will be a CISP – Certified IRA Services Professional!

Coordinating with your spouse about your IRA. What to do

7 Mar

Individual Retirement Accounts were designed to be a savings vehicle for individuals, not couples. So even though you can designate your spouse as a beneficiary of your IRA, there’s no way of combining your spouse to your IRA account as a joint owner.

But that doesn’t mean that coordinating with your spouse on how to best contribute to your self-directed IRA isn’t important. In fact, working together to coordinate your contributions to these retirement accounts is the safest way to ensure a healthy retirement, and is the closest you can get to combining your spouse to your IRA.

Coordinating with your spouse about your IRA Contributions. The general rule for IRA contributions is that a person needs to have at least as much earned income in a given year as they seek to contribute to their IRA. One significant exception to this general rule is that their spouse can make a contribution to their account on their behalf, provided that the couple’s tax filing status is married filing jointly.

This is significant because even if the working spouse is unable to make a contribution to their own self-directed IRA (as may be the case if his or her level of earned income is too high and he or she is covered by an employer sponsored retirement plan), they still may be able to make a deposit to the non-working spouse’s IRA on the basis of the spousal contribution rules. This can be a sizable financial benefit for a couple where the working spouse is ineligible to make contributions to their own IRA in any given tax year.

Coordinating with your spouse about the deductibility of contributions. The rules for deductibility of contributions to a traditional IRA are more favorable and flexible for married couples. For example, consider a married couple where one spouse has an adjusted gross income of $150,000 in 2013, and is covered by a 401(k) at work. This individual cannot make a deductible contribution to a traditional IRA because their income is too high (for 2013, the maximum income level for any degree of deductibility is $115,000). But the non-working spouse can make a deductible contribution to their own traditional IRA because the income threshold that applies to them (where deductibility begins to phase out) is $178,000. By paying attention to these rules for spousal contributions, a couple can be sure to maximize their tax benefits each and every year.

Coordinating with your spouse about your IRA diversification. You may already be doing the work necessary to make sure that you’re properly diversified across your various retirement savings vehicles and non-retirement savings accounts as well. By analyzing all of your investment holdings, regardless of the type of account they’re held in, you can be sure that you’re not taking on more investment risk than is appropriate for your situation and needs. But it’s also important to make sure that your family’s investment risk is appropriately diversified as well. Analyze what your risks are for each individual’s account, and make your contributions accordingly.

The spousal benefits that relate to self-directed IRAs can be very valuable if you know how to maximize their effectiveness.

Why Women are Driving the Demand for Rental Apartments

15 Feb

On the first of every month I write a check for a pretty penny to my landlord. Occasionally I wish I wasn’t paying someone else but instead paying off my own home. However, I know I can’t commit to the idea of owning a home. Living in an apartment offers me flexibility: no yards to mow, no toilets to fix, no property taxes to pay… etc. I also feel safer in an apartment complex knowing I have neighbors nearby and that I am not truly “alone” when my roommate is out of town.

Other things I like about living in an apt: if you hate it after a year you can move, no questions asked and you get to pick a whole new one. If you hate it after 3 months you can still move but it will cost you and then you get to pick out a whole new one. You almost never run out of hot water. There is a gym and a pool that you don’t have to maintain. The landscaping is usually pretty nice. They are usually near the essentials like grocery stores and gas stations, and if something breaks, there is a maintenance crew for that!

In the last 7 years I have lived in EIGHT apartments. I am a wanderer by nature and if I bought a house I would want to move out after a year.



Why Women are Driving the Demand for Rental Apartments


CNBC.com | Tuesday, 12 Feb 2013 | 12:07 PM ET

The housing market is supposedly roaring back. Home prices are seeing their biggest annual gains since 2006.

Renters must be rushing back to buy, right?

Not exactly.

In fact, even as housing and the greater economy improve, a shift in demographic trends will likely favor the rental apartment market for the foreseeable future. It is all about women.

“I rent in an apartment building because it gives me a certain amount of freedom: I’m not positive that I want to stay in D.C. long term so I could leave at year’s end if I wanted to,” says 25-year-old Caitlin Huey-Burns, a working journalist. “My building has nice, built-in amenities, and it’s in the location I want, but where I know I wouldn’t be able to afford to buy.”

Most of Huey-Burns’ single, female friends, some in their thirties, who live in major cities, also rent in apartment buildings. Just one owns, and she lives in Canton, Ohio.

“What drives demand for single family homes is, ‘Oh honey, I’m pregnant,” says Buck Horne, a housing analyst at Raymond James.

(Read More: America’s Most Expensive Rentals 2013)

But those words are being uttered less and less. Horne claims the shift in female education, marriage and fertility rates will drive rental apartment demand going forward. He points to a growing educational imbalance, that is, 3.1 million more women enrolled in college than men and 4 million more college-educated women in the workforce than men.

“That creates a structural imbalance in the number of suitable partners. Women leave college with good income prospects and are not finding suitable husbands and fathers,” says Horne.

Consequently, the millennial generation is delaying marriage and motherhood, and birth and fertility rates are dropping. The female fertility rate is at its lowest level in recorded U.S. history, according to the Centers for Disease Control/Raymond James research. 41 percent of children are born out of wedlock. Horne’s research finds single mothers prefer living closer in to cities and staying in full amenity apartment rentals. This all points to more structural, long-term demand for rental housing.

(Read More: Home Builders Turn to Rental Apartments)

But, again, shouldn’t that rebound in home prices and growing confidence in housing still push more renters to buy, despite the female argument? Investors certainly think so. While stocks of the nation’s homebuilders are up over 60 percent from a year ago on the PHLX Housing Sector Index, multi-family REIT’s actually under-performed and inversely correlated to home builders. Investors were concerned about the single-family home recovery stealing renters. But should they be?

No, according to a recent Raymond James report:

Renter household formation remains at the strongest level in decades. Roughly 1.32 million new renter households were formed in the past year (including owner conversions), while the number of owner-occupied households declined by 175,000. Resident turnover and move-outs to homeownership remain near historic lows for most operators. Incoming leasing traffic is more than offsetting move-outs while paying higher rates.

The home ownership rate declined yet again in the fourth quarter of 2012, according to a new report from the U.S. Census today. It now stands at 65.4 percent, down from 66 percent a year ago and from a high of 69.2 percent in 2004. If you include the 5.3 million borrowers who are delinquent on their mortgages or in the foreclosure process, per Lender Processing Services, the real home ownership rate is even lower.

“The fact that the housing recovery is being driven principally by investor demand means that the slight decline in the homeownership rate in the fourth quarter is unlikely to be the last,” notes Paul Diggle of Capital Economics.

(Read More: World’s Most Expensive City to Rent Is…)

There is also a tremendous amount of pent-up demand for the rental market, as nearly 23 million young adults, male and female, under age 35 (31 percent of the cohort) are currently classified as ‘living at home’ with parents, according to Raymond James’ analysis. As job growth improves, they will move to rental apartments; the homeownership rate for this group is only 34 percent.

(Read More: Rentals Chip Away at Home Builder Gains)

Investors are also concerned about a 49 percent jump in multi-family construction permits from a year ago, but those permits are still running well below normal levels, and every year about 150,000 units are removed from housing stock for various reasons, like age and damage.

Suffice it to say that the apartment sector and the multi-family REITs will likely see a surprise to the upside in 2013. Rents will still rise, despite housing affordability and growth in the single family market.

(Read More: Real-Estate Tips from a Mega-Broker to the Stars)

—By CNBC’s Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC

Questions? Comments? RealtyCheck@cnbc.com

© 2013 CNBC.com

URL: http://www.cnbc.com/100416547