Retiree's debate this question everyday. Traditional pensions allow workers to take a lump sum distribution but is that really the best plan? Angie Marek from Smart Money states, "Taking a lump sum can also create tax complications..."
The real question is what is the best answer for you? Do you know what to do if you choose the lump sum option? Do you know what to do to avoid huge tax complications? I believe one should understand what the end result will be PRIOR to making a decision. I was always told by my good friend Brian Buffini, "When you put on those levi's and they don't fit remember, you didn't gain those 10lbs overnight." That may be a tongue and cheek answer but you didn't reach retirement age in one day. It has been over a life time of choices that has you where you are. Now to figure out what to do about it and hope you make the correct choice. I believe it's time to learn BEFORE you reach retirement age so you can create the outcome you are looking for. Others have, why not you?
As Jeff Carbone, a financial adviser in Cornelius, N.C. states...To the millions of workers scraping by with a crash-depleted 401(k), having a (lump sum) pension can seem like the next best thing to a lottery ticket...often on top of Social Security...many actual pension holders are quietly becoming casualties of the tough economy.... “The world is changing.”
There are several options out there for a person to grow their retirement funds safely. Creating that security we all are seeking. How much do you want to receive every month to live comfortably, not dependent on anyone else or the government? Think about it, does it really take age to retire? NO, it takes money. If you had your plan in place and you choose to retire at age 40 then go for it and have a blast! Is that possible? Yes it is if you know what you are doing. Is it time you figure out if that works for you? Do you want $5,000 or $10,000 a month coming in during retirement? how many years do you want that income to be accessible for you? For example, the statistics show you would need $5,210,607 in assets that pay you, if you decided to receive $5,000 for 40 years based on Y2005 dollars and using a 3.49% inflation per year. How close are you? Can you feel comfortable knowing you have your estate in order and not feel the effects of those huge tax complications? www.retirewealthy.biz offers a free eReport on growing your retirement funds exponentially tax free.
As Albert Camus stated, "Life is the sum of all your choices." Join the movement and get educated, learn what to do and how to safely...take the money and run! You deserve it and your family deserves it. www.MoneyMama.biz.
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MoneyMama.biz guides and directs others to live life in their timeframe on their terms so they can be more and do more for those they love the most.
Create yourself a fabulous day..
Jody
Wednesday, August 25, 2010
Tuesday, August 24, 2010
Calculated RISK...or do they really mean common sense?
Let's go to the Real Estate "common sense" corner...what's really going on and what you really should consider. Solutions to getting into great real estate deals now. How does risk free real estate sound?
People trying to ride the wave of real estate can either jump in or be paralyzed by what they hear so let's get some facts on the table. Keep in mind, since there is no ceiling in real estate it means there is no bottom. Is real estate too risky? It can be if you don't know what you are doing. Consider house prices in California, stated in "the people history"; 1950 prices were around $14,500, 1960 prices around $18,500, 1970's around $26,600. What about now?
Look at what Zach Fox from the North Country Times in Calculated RISK Finance & Economics states in another Deal of the Week: Riding the waves in Oceanside (California). He states, "The featured 2 BR 2 BA condo sold for just under $100 thousand new in 1990. It went into foreclosure during the early '90s California housing bust, and was resold in 1995 for $33,000.
By 2000 the condo was above the original selling price. And then "rode the bubble" to an outrageous price. The condo went through foreclosure last year and sold in February for less than the original price in 1990! Adjust that return for inflation ..."
What does all this mean? If you knew how to read the market, understood what the current conditions were saying during the 1990's, would you have seen this wave coming?
History shows clearly the prices have gradually increased over each 10 year period. What I have come to learn is most people avoid the real estate arena because; they are scared to jump in, big time fear holds them back , they don't have the time to really know what or how to make a smart buying or selling decision, especially a lack of knowledge being so afraid to be "taken", rightfully so!
www.MoneyMama.biz
Common sense tells us we still have 3 basic needs which never go away.... food, water and shelter (www.MoneyMama.biz). We are still bringing babies into this world, our bodies require water and we still need a place to live. I invite you to get educated (www.MoneyMama.biz) and learn how simple, easy and smart it is to invest in real estate now. Learn what it takes to remove the fear of being "taken", understand buyer beware statements. Experience the opportunities of applying knowledge to make smart buying and selling decisions. Know how to benefit from real estate no matter what time you have available.
Knowledge alone is not power. Knowledge applied is power. Learn how to take charge of your financial situation today. If you are a first time home buyer, learn how to buy a property at wholesale. That means if the market goes down you are still in a position to have purchased at a great price. If the market goes up, you are sitting pretty. If you own multiple properties, buy more. Learn when and how to make smart buying and selling decision either in a good market, flat market or down market. Would that not give you the upper hand in today's economy? If you feel you are a seasoned investor, don't discount getting educated even if you believe you already know it all. Remember you don't know what you don't know.
People trying to ride the wave of real estate can either jump in or be paralyzed by what they hear so let's get some facts on the table. Keep in mind, since there is no ceiling in real estate it means there is no bottom. Is real estate too risky? It can be if you don't know what you are doing. Consider house prices in California, stated in "the people history"; 1950 prices were around $14,500, 1960 prices around $18,500, 1970's around $26,600. What about now?
Look at what Zach Fox from the North Country Times in Calculated RISK Finance & Economics states in another Deal of the Week: Riding the waves in Oceanside (California). He states, "The featured 2 BR 2 BA condo sold for just under $100 thousand new in 1990. It went into foreclosure during the early '90s California housing bust, and was resold in 1995 for $33,000.
By 2000 the condo was above the original selling price. And then "rode the bubble" to an outrageous price. The condo went through foreclosure last year and sold in February for less than the original price in 1990! Adjust that return for inflation ..."
What does all this mean? If you knew how to read the market, understood what the current conditions were saying during the 1990's, would you have seen this wave coming?
History shows clearly the prices have gradually increased over each 10 year period. What I have come to learn is most people avoid the real estate arena because; they are scared to jump in, big time fear holds them back , they don't have the time to really know what or how to make a smart buying or selling decision, especially a lack of knowledge being so afraid to be "taken", rightfully so!
www.MoneyMama.biz
Common sense tells us we still have 3 basic needs which never go away.... food, water and shelter (www.MoneyMama.biz). We are still bringing babies into this world, our bodies require water and we still need a place to live. I invite you to get educated (www.MoneyMama.biz) and learn how simple, easy and smart it is to invest in real estate now. Learn what it takes to remove the fear of being "taken", understand buyer beware statements. Experience the opportunities of applying knowledge to make smart buying and selling decisions. Know how to benefit from real estate no matter what time you have available.
Knowledge alone is not power. Knowledge applied is power. Learn how to take charge of your financial situation today. If you are a first time home buyer, learn how to buy a property at wholesale. That means if the market goes down you are still in a position to have purchased at a great price. If the market goes up, you are sitting pretty. If you own multiple properties, buy more. Learn when and how to make smart buying and selling decision either in a good market, flat market or down market. Would that not give you the upper hand in today's economy? If you feel you are a seasoned investor, don't discount getting educated even if you believe you already know it all. Remember you don't know what you don't know.
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