What is the difference between early retirement and full retirement as it applies to Social Security retirement benefits?

July 7, 2024 No Comments

A: If you were born in 1929 or later, you’ll need forty Social Security credits to be eligible for Social Security retirement benefits. You can earn up to four credits per year, which means that you will need to work at least ten years to

What is the difference between portfolio management and financial planning?

July 7, 2024 No Comments

A: Utilizing the expertise of a financial professional can be beneficial to an individual wanting to reach an investment goal or other financial objective. However, it is important to know which types of services are provided by the financial professional. Although it is common to

What are the tax consequences of a Roth IRA?

July 7, 2024 No Comments

A: The tax treatment of a Roth IRA distribution depends on whether the distribution is qualified. Qualified distributions from Roth IRAs are tax and penalty free, but non-qualified distributions may be subject to tax and an early-distribution penalty (known as an excise tax). Generally speaking,

What is the difference between revocable and irrevocable intervivos trusts?

July 7, 2024 No Comments

A: Within estate planning, individuals have a myriad of options for maintaining control over assets beyond the grave. A tool often used in estate plans to control the flow of assets is an inter vivos trust, more commonly referred to as a living trust. An

What are the top Social Security scams targeted at the elderly?

July 7, 2024 No Comments

A: Elderly recipients of Social Security benefits are a highly targeted group for online con artists. Some scams operate over the phone, typically through callers impersonating Social Security Administration (SSA) employees who solicit personal information from senior citizens. Other scams originate online using email or

What rate of return should I expect on my 401(k)?

July 7, 2024 No Comments

A: We hate to drag out that old hedge-y phrase, “it depends.” But it does. Your 401(k) plan’s rate of return is directly correlated to the investment portfolio you create with your contributions. Although each 401(k) plan is different, contributions accumulating within your plan, which are diversified

What does amortization mean in the context of a pension plan?

July 7, 2024 No Comments

A: There are two primary needs for amortization within the context of a company’s pension plan. The first instances might include a company determining whether to apply current or new pension benefits retroactively to employees who performed services before the current iteration of the pension

What to do after maxing out your Roth IRA?

July 7, 2024 No Comments

A: Congratulations on saving for retirement! In 2018, you can contribute a maximum of $5,500 (or $6,500 if you are 50 or older) to a Roth IRA. Aside from a Roth IRA, there are a number of different retirement plans and tax-deferred savings vehicles for

What are the differences between an annuity derivation and perpetuity derivation of the time value of money?

July 7, 2024 No Comments

A: The differences between an annuity derivation and a perpetuity derivation of the time value of money is due to differences in time periods. Since the life of an annuity differs from the life of a perpetuity, an annuity uses a compounding interest rate to

What are the differences between Canada Pension Plans (CPP) and Social Security Benefits?

July 7, 2024 No Comments

A: On the surface, the U.S. Social Security system and the Canada Pension Plan have a lot in common. Both are publicly provided, mandatory old age pension systems that have the option of providing disability and survivor benefits in addition to retirement assistance. The most

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