Can dividends be paid out monthly?

June 30, 2024 No Comments

A: Although it is more common for dividends to be paid quarterly or annually, some stocks do pay monthly dividends. Dividends: The Basics Public companies pay dividends to their shareholders, typically in cash, as a means of expressing thanks for their continued support. Dividends are

Are spousal Social Security benefits retroactive?

June 30, 2024 No Comments

A: Spousal Social Security benefits are retroactive. These benefits are quite complicated, and anyone in this type of situation is advised to sit down with a financial counselor to review options. Some of the major factors that could impact this decision are the life expectancy

Can I borrow from an IRA without penalty?

June 30, 2024 No Comments

Technically speaking – yes. The 60-day rollover rule applies to all types of IRAs. This 60-day rollover rule allows you to withdraw assets from your IRA and roll over the amount within 60 days. If the amount is rolled over within 60-days, the distribution (withdrawn

Are spousal Social Security benefits taxable?

June 30, 2024 No Comments

A: Your spousal Social Security benefits may be taxable, depending on your total household income for the year. About one-third of those who receive Social Security benefits have to pay taxes on them. However, you do not pay taxes on more than 85% of your

Can I borrow from my annuity to put a down payment on a house?

June 30, 2024 No Comments

A: You can borrow from your annuity to put a down payment on a house, but be prepared to pay an assortment of fees and penalties. In fact, when figuring a way to fund your down payment, borrowing from an annuity should be a method

Are target-date retirement funds good investments?

June 30, 2024 No Comments

A: The main benefit of target-date retirement funds is convenience. If you really don’t want to bother with your retirement savings, just check off the box with the fund corresponding to your desired retirement age. The money gradually moves from stocks to safe bonds as

Are the deferred earnings in a SIMPLE IRA subject to FICA taxes?

June 30, 2024 No Comments

A: While salary deferral contributions to a savings incentive match plan for employees of small employers (SIMPLE) IRAs and SIMPLE 401(k)s are not subject to income tax withholding, they are subject to tax under the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act

Are there penalties for withdrawing monies invested in annuities?

June 30, 2024 No Comments

A: Annuities can be a great investment for retirement savings and estate planning, but they are often passed over due to the expenses and long-term contracts associated with this type of investment. If money is withdrawn from an annuity before the contract specifies, hefty penalties

Are treasury bills a good investment for retirement savings?

June 30, 2024 No Comments

A: Making investment decisions for your retirement savings is all about balancing opportunity cost and risk. Treasury bills (T-bills) issued by the U.S. government are considered among the safest investments in the world, so risk should never be a significant deterrent. However, the return on

Are variable annuities subject to required minimum distribution (RMD)?

June 30, 2024 No Comments

A: Variable annuities are insurance contracts that provide tax-deferred growth of assets that can later generate a guaranteed income stream, thus making them popular vehicles for financing retirement. Like other investment products, variable annuities can be held as either qualified or non-qualified for tax purposes.

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