May 31, 2017
How to set a Financial Goal; Should I use a roth or a traditional

Should I Use a ROTH IRA or a Traditional IRA?

It’s an age-old question when it comes to retirement accounts. Should I use a ROTH or a Traditional IRA? Both are great vehicles to prepare for retirement. However, neither are ALWAYS a perfect fit for everyone. Let me break them down a little further to help you understand the differences and when you might want to choose one over the other. What is the difference? First, you need to know what each account does and how it shelters your money. ROTH IRA’s are the accounts that you place after-tax dollars in. So for example, if you put $5,000 in a ROTH, you’ll get the earnings from that tax-free later in life. Since the money was initially taxed before being placed in the account, it is set up to shield those gains from taxes. Essentially it’s tax-free money for retirement. A Traditional IRA works the exact opposite. The money placed within these types of accounts are pre-tax dollars. Therefore, you’re getting a tax break up front. When you file your taxes, you’ll often get a tax deduction because you chose to fund a Traditional IRA. However, once you begin to withdrawal that money in retirement, the earning from it are fair […]
May 30, 2017
Scams targeting taxpayers

Scams Targeting Taxpayers

IRS-Impersonation Telephone Scams Aggressive and sophisticated phone scams targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, using fake names and bogus IRS identification badge numbers. Scammers tend to know a lot about their targets, and usually alter the caller ID to make it look like the IRS is calling. They tell victims they owe money to the IRS and it to pay immediately. They often insist the payment is with a pre-loaded debit card or wire transfer. The scammers threaten arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting. Or, victims may be told they have a refund due too, trying to trick them into sharing private information. If the phone isn’t answered, the scammers often leave an “urgent” callback request. Please See: Consumer Alert: Scammers Change Tactics, Once Again Some con artists have used video relay services (VRS) to try to scam deaf and hard of hearing individuals. Taxpayers are urged not trust calls just because they are made through VRS, as interpreters don’t screen calls for validity. For more details see the IRS YouTube video: Tax […]
May 26, 2017
RMD's; retiring early

Retiring Early: Is it Possible?

In my business, I work with all different types of people. They run the gamut. Some are employers, while others are the employees. Some tell me they want to retire early. To that, I then ask them what retiring early means to them. Are we talking late 50s, early 60s, perhaps even early 40s? The key to helping them reach that goal is to know the age that goal needs to be achieved by. Retiring early constitutes walking away from making income, living solely off our assets and whatever income they produce. For our example, let’s say the person wanting to retire early and is looking to do so between 55 and 60. The very first thing to consider is how much is this person going to live off of each of retirement? There’s a calculation that needs to be made on your budgetary requirements based on what you are currently living off of each year. Then we must factor in inflation. We know the cost of living will go up, so it’s vitally necessary to prepare for that when quantifying these numbers for retirement. So if someone is retiring at 50 and they typical spend $50k a year for […]
May 26, 2017
Time to till the garden! So let's get to work!

Time to till the garden! Let’s get to work!

Here’s the weekly garden update from Joseph’s Ridge! It’s time to till the garden! Let’s get to work! We’ve got crops to plant!