Tag Archives: irs

IRA Bootcamp

12 Feb

The importance of paying your taxes

4 Dec

What happens if you don’t pay your taxes? Unless you plan to be broke for the rest of your life, the IRS will come and get their money. Lindsay Lohan is learning this firsthand.

(Click here to read about Lindsay Lohan)

10 Things you need to know about IRAs

12 Nov

1.  IRA stands for Individual Retirement Account, and it’s essentially a separate savings account with big tax breaks, making it an ideal way to sock away cash for your retirement. An IRA is not an investment on its own, but a account that can grow tax deferred or tax free by being invested in stocks, bonds, notes, real estate, etc.

2. There are two types of Personal IRAs
The Traditional IRA (You can deduct the contribution from your taxes and the account grows tax deferred  and the Roth IRA (after tax dollars for completely tax free growth)

3. Almost everyone who has earned income can qualify for an IRA.

4. Maximize your contributions.
Make the most out of them. You are limited to 5,000 (or 6k if over the age of 50).

5. The Roth IRA is the single greatest gift the government has given to young adults.
You make your contribution with after tax dollars but your account grows completely tax free! The Roth IRA also allows you to use the account as an emergency fund by allowing you to take a distribution up to the amount you have contributed.

6. Later Contribution dates than your 401k
The annual deadline to make your contributions is Tax Filing Day (Usually April 15th)

7. IRAs can be managed accounts
While brokerage accounts allow you to give your financial advisor written authorization to make investing decisions and routine transactions without notifying you first. Depending on who your custodial bank is, you can 100% choose the investments you make.

8.  Investment Options are NOT limited:
Although most custodians only allow your traditional nest egg (stocks, bonds, mutual funds), its important to know that there are custodians that allow the broadest possible spectrum of investments (Real Estate, Precious Metals, Loans, Mortgages, etc).

9.  Your IRA is not governed by your will.
When you opened your IRA you filled out something called an adoption agreement. This is a legal document. Regardless what your will or trust specifies, your IRA will go to the person or organization you named as your beneficiary in the adoption agreement.

10. Start Early!