Financial Power Blog

Social Security When You Retire

Social Security When You Retire

Social Security is federal program funded by payroll taxes that provides income to retirees and workers who become disabled.    The Social Security program is supported by federal payroll taxes. If you receive a paycheck, your employer will withdraw a percentage of your earnings for Social Security. If you work for yourself, you will be responsible for paying these taxes. Self-employed individuals must record their earnings and pay their Social Security taxes to the IRS directly. These taxes will be used to establish your future eligibility for benefits.   Because Social Security payments are dependent on your job history, you may...

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Why should you consider a LTC Rider with your life insurance policy?

Why should you consider a LTC Rider with your life insurance policy?

Life Insurance provides more than an income tax free death benefit. From time of policy purchase until retirement and beyond, there can be unique medical and financial challenges. Have you considered incorporating the options that can be available in a life insurance policy? A Long-Term Care Rider (LTC), often referred to as a Chronic Illness Rider, is a life insurance policy option that allows you to leverage your inforce policy should you develop an illness that leaves you unable to take care of yourself on a daily basis. The death benefit then can be used to pay for those unforeseen long-term care...

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Crash course on 401(k) plans

Crash course on 401(k) plans

You might assume that a 401k or a mutual fund is a solid way to save for retirement. Here's a quick crash course on 401(k) plans.   Money in a 401(k) is often invested in stocks and mutual funds. If the market goes up, so can your money. If you have money in a 401(k) with stocks or mutual funds, your money could be at risk for loss as well! That means if the market goes down, you can lose.   Lastly, your 401(k) contributions are made before you pay taxes on the money, so you're taxed as you withdraw money...

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OVERPAYING FEES AND LOADS ON IRAS, 401(K) AND 403(B) PLANS

OVERPAYING FEES AND LOADS ON IRAS, 401(K) AND 403(B) PLANS

The cost of doing business on Wall Street can be more than exposure to risk. The market crash of 2008 and the first quarter of 2009 gave many investors good reason to think their approach to a comfortable retirement. For most Americans living today, this was the biggest financial crisis in their lifetimes. Now that the market has made recovery, many investors are looking more closely at the fees and loads that can erode their nest eggs substantially over time.   An article in the Wall Street Journal, “The Hidden costs of Mutual Funds”, pointed out doing business on Wall...

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