Buying a US Treasury EE Bond can be a great idea if you want your funds held long term and have no need for the funds prior to their 20 year maturity. EE Bonds offer fixed interest rates for the life of the bond. The maturity period for EE Bonds is 20 years, if you redeem the bond in the first 5 years of ownership, there is a penalty affixed. EE Bonds offer safety, market yield and tax deferred interest compounding.
Learn the miracle of compound interest and harvest the benefits! We’re just past the halfway point in the year, and around this time of year I often get asked: “Casey, what is the most obvious financial mistake you see made and how can I avoid it?” So, without any further ado, here is my [...]
The Baby Boomers are arriving in full force. In 2006 we witnessed activity in the annuity sales market totaling sales $236 million. Much of this demand is because Baby Boomers were retiring at the rate of 10,000 per day. And with the impending crush of retirements, the insurance industry is gearing up for a [...]
Annuities are designed as long term vehicles to be used later in life — at least until age 59 ½. To make annuity owners focus on their use later in life, the IRS imposes a 10% additional tax for any annuity accessed before that age minimum of 59 ½. The tax is in addition to any income taxes which may also be due on a pre-59 ½ distributions.
Need a reason to add an annuity to your retirement portfolio? Here are 10. Annuities aren’t for everyone; you have seen me write about that often. But when you are putting together your “bedrock” foundation for your retirement plan, they can be essential to that planning. Think of layering, this about safety and security as [...]
Learn How a 403(b) Can Expand Your Retirement Options A 403(b) plan, also known as a Tax Sheltered Annuity (TSA), is a retirement plan for employees of public schools and other tax-exempt organizations. It's also called a tax-sheltered annuity (TSA), a tax-deferred annuity, or a 403(b) annuity. Only certain people are eligible to participate in [...]
While saving for the eventual day that you no longer have to rise early, get dressed and commute or drive to your place of employment, you hoped you could accumulate as much as possible without losing any of your hard-earned money. But that did not always happen. Your 401k, IRA or another tax-deferred account would [...]
Banks CDs and Annuities have pros and cons. Here they are...