The Complete Guide to IRAs and IRA Investing: Wealth-Building Strategies Revealed
As more and more baby boomers prepare to retire and as people seem to be retiring at an earlier age, the importance of saving for retirement has become increasingly apparent. Many people find themselves worrying that they will not be able to maintain their current life style once they retire. However, the strategies provided in this book will help you turn your IRA into a wealth-building tool. \ The Complete Guide to IRAs and IRA Investing will show you how to take control of your...
Search in google:
As more and more baby boomers prepare to retire and as people seem to be retiring at an earlier age, the importance of saving for retirement has become increasingly apparent. Many people find themselves worrying that they will not be able to maintain their current life style once they retire. However, the strategies provided in this book will help you turn your IRA into a wealth-building tool. The Complete Guide to IRAs and IRA Investing will show you how to take control of your investment future and make sure your investments are performing for you. You will learn about Roth IRAs, traditional IRAs, SEP IRAs, SIMPLE IRAs, and self-directed IRAs, and you will learn how to choose the right plan for you. You will learn about the Economic Growth and Tax Relief Reconciliation Act of 2001, rules regarding distribution, rollovers, transfers, conversions between accounts, valid adjustments, adjusted gross income, annual contribution limits, the advantages and disadvantages of the various IRAs, potential penalties, tax deductible contributions, myths and truths about IRA investing, and IRS guidelines. In addition, we will show you how to open an IRA; how to choose the right financial advisor for you; how to manage vital information and deadlines; how to set up your account with a custodian or IRA administrator to deal with the day-to-day activities, such as depositing contributions and executing and settling transactions; and how to use your IRA to invest in mutual funds and stocks. You will also read about the specific rules relating to life insurance, collectibles, foreign investments, and real estate and find the answers to common questions, such as “How do rate returns affect my retirement income?” “When should I begin saving?” “What IRA am I eligible for?”This new book will provide you with all the information you need to know about IRAs and IRA investing. The Complete Guide to IRAs and IRA Investing combines essentials, insight, and insider secrets to help you secure financial victory after retirement.
Foreword 13Introduction 19Section 1 Understanding Iras 23Chapter 1 What is an IRA? 25Your Ticket to a Secure Financial Future 25History of IRAs 26How Does an IRA Work? 30IRAs and Income Tax 32Chapter 2 Traditional IRAs 35Tax Benefits 35Types of Investments 37Rules and Restrictions 38Withdrawals 41What You Cannot Do With a Traditional IRA 43Common Strategies with a Traditional IRA 46Simplified Employee Pension (SEP) IRAs 54Advantages of an SEP 58Education IRAs: Coverdell Education Savings Accounts (CESAs) 60Simple Iras 62Chapter 3 Roth IRAs 65Rules and Restrictions 65Conversions and Rollovers from Other IRAs and Retirement Plans 73Reporting a Loss on a Roth IRA 78Common Strategies with Roth IRAs 79Chapter 4 IRAs, 401 (k)s, Profit-Sharing Plans 83Profit-Sharing Plans 83Stock Bonus Plans 86Money Purchase Pension Plans 86Employee Stock Ownership Plans (ESOPs) 87Defined Benefit Plans 87Target Benefit Plans 88Keogh Plans 88IRAs and 401 (k)s 89What to Do with Your 401 (k) When You Leave a Company 90Section 2 Setting Up And Managing An Ira 95Chapter 5 How to Set Up an IRA 97What are Your Investment Objectives? 97How Much Do You Need for Retirement? 98Considerations in Planning Your IRA 99Leaving an IRA to a Charity 104When Should You Open an IRA? 104How to Find an IRA 107Financial Advisors 111Contributions 112Achieving Your Goals 116Chapter 6 Your Portfolio 123Building Your Portfolio 124Investment Styles 126Modern Portfolio Theory 132Asset Allocation 144Your Portfolio 149Chapter 7 Self-Directed IRAs 171The Major Players 172Choosing anAdministrator 173Funding a Self-Directed IRA 177Checkbook Control 178Managing Risk 179Real Estate 181Real Estate Options 184Taking RMDs 192Loans 192Precious Metals 193Prohibited Transactions 193Section 3 Making Withdrawals From An Ira 197Chapter 8 Early Withdrawals 199Early Distributions - 59V2 Rule 199Early Withdrawals of Nondeductible Contributions from Traditional IRAs 205Early Withdrawals from Roth IRAs 206Chapter 9 Required Minimum Distributions (RMD) 211When Do You Begin Taking the RMD? 211Calculating Your RMD 212How Do You Take Your RMD? 214RMDs for Multiple IRAs 215An Extra Amount Withdrawn One Year Cannot Be Credited to a Later Year 215Penalty For Failure to Take Your RMD 216Effect of RMDs on Your Finances 217Chapter 10 IRAs and Your Taxes 219Income Tax Brackets 220Basis 223Tax Deductions for Losses on Investments in Your IRA 225Investments in Taxable and Non-Taxable Accounts 227Additional Tax Penalties 229Section 4 Iras And Estate Planning 231Chapter 11 Planning for Your Beneficiaries 233Tax Consequences of Inheriting an IRA 234Your IRA and Your Will 239Naming Your Beneficiaries 240Your Custodial Agreement 248Stretching an IRA 249Convert to a Roth IRA 253Keep All Your IRA Documents in One Place 254Chapter 12 When You Inherit an IRA 255How Large is Your Inherited IRA? 256Do You Need Cash? 257What Are Your Tax Liabilities? 257Life Expectancy Rule 258The First Step: Name a Successor Beneficiary 259Spouse Sole Beneficiary 260Non-Spouse Beneficiary 263Multiple Beneficiaries 265Reporting Distributions From an Inherited IRA 268Chapter 13 Special Circumstances 269Divorce or Separation 269Common IRA Mistakes 274What to Do When You Make a Mistake 277Ineligible Contribution to a Roth IRA 280Private Letter Ruling 281Chapter 14 Your IRA and the Economic Crisis of 2008 - 2009 283Things May Never Be the Same Again 284Perception and Trust 290What the Government Can Do 292Managing Your IRA in a Down Economy 293Appendix A Acronyms 299Appendix B Glossary 303Appendix C Useful Web Sites 317Appendix D Federal Government Publications and Forms 329Appendix E Lifetime Expectancy Tables 333Bibliography 351Author Biography 355Index 357
