Part 7: Investment Vehicles

If you are a loyal reader of my blogs then you know that I talk about many types of investments. For retirement, you should rely on the following items;

1.     IRS Laws governing taxes for such accounts as SEP, IRAs, 401K and 403b plans and Keogh

     2.       Brokerage, Insurance, and Banking Rules for Retirement Accounts with tax exemptions or deductions

     3.       The Investment Vehicles or securities purchased for such accounts.

By following the rules, you can accumulate cash quickly for retirement.   We are going to concentrate on investing as cheap as we can without hurting safety.  Keep in mind, higher returns usually means higher risks. If you are young, taking big risk to make big gains may be” OK” because you have years to recover if you guess incorrectly. But you may not want to take big risks when you are near retirement.  You may not have time to recover before you start taking retirement withdraws.

Be aware of anyone who claims that they can sell you an investment vehicle that offers great returns without great risks.  That is your first clue that it is a scam. These scam artists can be as famous and rich as Burney Madoff who took rich and power people for billions of dollars. Financial firms can have newspaper articles written about them as financial saviors in national and local newspapers or TV shows.  But they can be as wrong and as bad for you as any poison.  Here is why you must know as much about the investment that you are about to discuss as your experts. When you meet with them, don’t be afraid to ask questions. Don’t judge a person by how smooth they talk. Remember, anyone can claim to be a financial consultant or investment counselor. That does not mean that they know what they are talking about. 

Remember to monitor your investments. Ask tough questions and insist on speedy and satisfactory answers. Make sure you get regular written and oral reports. Look for signs of excessive or unauthorized trading of your money when you receive financial statements.   If you do see something that is unusual ask questions. If you don’t like the answers, report your suspicions to the authorities.

www.sec.gov

The Securities and Exchange Commission (SEC) Web site offers a menu of online “Investor Information” topics for consumer reference.  If you have any complaints, contact the SEC.

A Special Note for all my reader’s around the world!  

Hi my loyal readers around the world. I just finished making my final plans of my life. I will be retiring in a few short years and moving into my luxury retirement home. I will spend most of my time getting my seven year old grandson ready for the 2028 Olympics. I have no idea what my younger grandson is going to do. As of now, I would say it has something to do with electrical engineering because at 1 years old, he knew how to operate an IPad. But whatever it is, I will be around to lend assistance to his education.


My plans also involves my readers. I am starting an online stock club design to give my loyal readers as much as one million dollars, maybe more depending on when you start my plans. That money will be to remember me by.


Please read the blog below and follow my instructions if you want a chance to get one million dollars.

http://bondinvestments.blogspot.com/2012/06/how-would-you-like-to-have-over-one.html

The younger you are; 35 and below, the greater the chance of getting over one million dollars. If you are starting at 60 years old, chances are you will only make it to $100,000.



I started out at age 23 and spent a lot of time laid off and giving money away to my children for cars. I bought 3 homes. One home was paid off in full. The other I bought in a partnership paid in cash. All my cars since 1971 were the current year and I have not had a car note since 1983. I even gave two girlfriends a car each. That is why I don’t have a million dollars today. But if you become one of my “Greedy Friends” I am sure with my instructions, you can get that million.

Part 6: Taxes and Retirement

Eliza Thorne, exslave from Stony Point Va., ancestor 10th removed from Darnell L Williams. Owned an 11 acre farm with cattle, horses, and at least one Conestoga wagon. 

I have ten questions for you! Take out a sheet of paper and write down your answers.

1.       Income taxes go away when you are retired? (True or False)

2.       Social Security benefits are not sheltered from taxes! (True or False)

3.       There are no tax consequences if you don’t start to withdraw your pretax savings at age 70.5? (True or False)

4.       Everyone that wants to advise you about your retirement savings is a professional and has your interest at heart. (True or False)

5.       In general, stocks are safer than bonds when talking about retirement savings (True or False)

6.       A broker at the largest brokerage firm must know what they are doing and can give you the best advice in relation to your retirement savings. (True or False) 

7.       Bonds have steadier income than stocks. (True or False)

8.       Mutual Funds are safer than individual stocks or bonds (True or False)

9.       Bond Funds can give you steady income (True or False)

10.   An Annuity is a good savings vehicle for future steady income. (True or False)

Father and mother: Jean J. (Brown)Williams and William J. Williams II on their wedding day at First Baptist Church Steelton, Pa. on June 28, 1941. On the left, David Franklin and wife Alice (Brown) Franklin. On the right, Willie T. Williams, William's best man and his wife (not related).

Let's look at your answers!

1.       Remember all that pretax money you contributed to your retirement plan? When you withdraw it at retirement, you pay income taxes.
2.       That is true, they are not tax sheltered. A portion of your Social Security benefits is included in your taxable income.

3.       That is false. There is a 50% tax penalty on amounts that the IRS requires to be taken out after age 70.5 and that are not withdrawn when required.

4.       False, everyone has their own interest and their own biases. Some people have no clue what they are talking about.

5.       False, when a company goes bankrupt, stockholders get nothing. Stocks can’t get paid until bondholders get paid.

6.       Brokers must look after the interest of the brokerage firm first. You come second.

7.       True, bonds are paid by a schedule. Stock dividends can be cut or eliminated all together. 

8.       True, mutual funds are made up of many different securities. Because they have so many, one bad company makes little difference to the fund’s portfolio.

9.       True, most bond funds pay investors every month.

10.   True, you can have an annuity pay you every month, every quarter, or however you set it up.      

A Special Note for all my reader’s around the world!  

Hi my loyal readers around the world. I just finished making my final plans of my life. I will be retiring in a few short years and moving into my luxury retirement home. I will spend most of my time getting my seven year old grandson ready for the 2028 Olympics. I have no idea what my younger grandson is going to do. As of now, I would say it has something to do with electrical engineering because at 1 years old, he knew how to operate an IPad. But whatever it is, I will be around to lend assistance to his education.


My plans also involves my readers. I am starting an online stock club design to give my loyal readers as much as one million dollars, maybe more depending on when you start my plans. That money will be to remember me by.


Please read the blog below and follow my instructions if you want a chance to get one million dollars.

http://bondinvestments.blogspot.com/2012/06/how-would-you-like-to-have-over-one.html

The younger you are; 35 and below, the greater the chance of getting over one million dollars. If you are starting at 60 years old, chances are you will only make it to $100,000.



I started out at age 23 and spent a lot of time laid off and giving money away to my children for cars. I bought 3 homes. One home was paid off in full. The other I bought in a partnership paid in cash. All my cars since 1971 were the current year and I have not had a car note since 1983. I even gave two girlfriends a car each. That is why I don’t have a million dollars today. But if you become one of my “Greedy Friends” I am sure with my instructions, you can get that million.

Part 5: I am Behind on Retirement Savings

OK, you bought a home, you have a current year car, and you put your children through college. You are getting old and you have no money for retirement. What should you do? I have five suggestions for you. 

First, contribute the maximum to your retirement savings account. If your employer gives matching funds then take the money and invest your money in a high yielding fund.   In most retirement accounts, you will also get a tax deduction while participating in the plan.  You maybe illegible for the Catch-up provision of your retirement plan. This will allow you to contribute extra cash if you are over 50 years old.  If this is the case, act on it now.

Second, stay employed as long as you can! This will help you in retirement in many ways.  Having an income gives your retirement savings a chance to grow some more. A regular income could mean regular savings. If you work for a company that provides health insurance, you won’t have to fully pay for a policy yourself. Don’t forget, you may have social benefits of working such as talking to people every day.

Third, you plan to move to a region with lower housing cost and living expenses, example moving from New York City to Franklin County, Pa. You may want to move out of your house and downsize to a smaller house condo, or apartment at a place with lower taxes.  Remember, moving has its own expenses plus you may have to leave friends behind.  Do not use your savings to buy things that you do not need. Do not start accumulating debt. This is not the time to lend money to friends and relatives. It is time for children and grandchildren to be on their own. They probably have more earning power than you do.

Fourth, you are going to have to decide when you are going to apply for Social Security. You must apply between age 62 and age 70. Regardless of the age you start receiving Social Security benefits, remember to sign up for Medicare at age 65.

A Special Note for all my reader’s around the world!  

Hi my loyal readers around the world. I just finished making my final plans of my life. I will be retiring in a few short years and moving into my luxury retirement home. I will spend most of my time getting my seven year old grandson ready for the 2028 Olympics. I have no idea what my younger grandson is going to do. As of now, I would say it has something to do with electrical engineering because at 1 years old, he knew how to operate an IPad. But whatever it is, I will be around to lend assistance to his education.


My plans also involves my readers. I am starting an online stock club design to give my loyal readers as much as one million dollars, maybe more depending on when you start my plans. That money will be to remember me by.


Please read the blog below and follow my instructions if you want a chance to get one million dollars.

http://bondinvestments.blogspot.com/2012/06/how-would-you-like-to-have-over-one.html

The younger you are; 35 and below, the greater the chance of getting over one million dollars. If you are starting at 60 years old, chances are you will only make it to $100,000.



I started out at age 23 and spent a lot of time laid off and giving money away to my children for cars. I bought 3 homes. One home was paid off in full. The other I bought in a partnership paid in cash. All my cars since 1971 were the current year and I have not had a car note since 1983. I even gave two girlfriends a car each. That is why I don’t have a million dollars today. But if you become one of my “Greedy Friends” I am sure with my instructions, you can get that million.
 

Fifth, if you are reading this blog and many other blogs that I have  written about finance then you are on your way to educating yourself about investing. Don’t put your money in the wrong place. You do not want to put your money in a checking account, savings account, or money market fund for retirement.  The objective for your retirement savings is to make far better than the rate of inflation.  

Part 4: Where Will I Live When I Retire?

That is a good question! This should be your first priority since where you live in retirement affects not only your income but also our emotional, social, and physical well-being. Your retirement home is the most important part of your overall retirement strategy.   Yes, the cost of housing has not gone up like it has from 1950 to 2008. Healthcare is going up faster than housing.  But housing is still high in most places outside the ghetto. Heating and cooling cost go up and down depending on the weather and the supply of natural resources such as gas, electric, and oil.  Don’t forget retirement homes come with maintenance, condo fees, real estate taxes, and insurance that is affected by inflation.

If you decide to look into Independent living facilities, design for reasonably healthy older people, you will find that it is not cheap. These homes often require a hefty down payment of $200,000 and a monthly fee of $2,000.  Getting an apartment can be a less expensive deal but you still have a monthly fee of $1,000 or more to pay besides rent.

I had a friend that was up in age. They put her in the hospital but she did not want them to keep her alive. She died. I could not understand why she felt that way until I started resourcing the cost of it all. In 2006, the average nursing home care per day in a private room was $206. Do you know that 40% of today’s age 65 Americans will spend some time in the future in a nursing home? This is why healthcare can consume most if not all your retirement money. Insurance companies have insurance policies that can protect you against such health care risk.  However, a typical annual premium for a 60 year old can be as high as $2,500 per year. The younger you are when taking out the policy, the less the cost per year.

Some preretirees are starting special health care savings funds at work, separate from their retirement savings.  A Health Savings Account (HSA) can help you save for future qualified medical and retiree health expenses on a tax-free basis. Individuals that do not belong to a workplace health plan can sign up for HSAs with some banks, insurance companies, and other approved organizations.  These accounts can receive contributions from you, your employer, or members of your family. You can use the funds from an HSA to help offset future medical costs, and the money in your account can be carried over from year to year.  This account stays with you as you move from one employer to another.  Here are two website that may help you with future health care;

www.medicare.gov

www.socialsecurity.gov/prescriptionhelp/

The “Centers for Medicare and Medicaid Services" site is your first and most reliable resource for information on Medicare. It includes information on billing, appeals, long-term care, and links to information on the prescription drug program.          

A Special Note for all my reader’s around the world!  

Hi my loyal readers around the world. I just finished making my final plans of my life. I will be retiring in a few short years and moving into my luxury retirement home. I will spend most of my time getting my seven year old grandson ready for the 2028 Olympics. I have no idea what my younger grandson is going to do. As of now, I would say it has something to do with electrical engineering because at 1 years old, he knew how to operate an IPad. But whatever it is, I will be around to lend assistance to his education.


My plans also involves my readers. I am starting an online stock club design to give my loyal readers as much as one million dollars, maybe more depending on when you start my plans. That money will be to remember me by.


Please read the blog below and follow my instructions if you want a chance to get one million dollars.

http://bondinvestments.blogspot.com/2012/06/how-would-you-like-to-have-over-one.html

The younger you are; 35 and below, the greater the chance of getting over one million dollars. If you are starting at 60 years old, chances are you will only make it to $100,000.



I started out at age 23 and spent a lot of time laid off and giving money away to my children for cars. I bought 3 homes. One home was paid off in full. The other I bought in a partnership paid in cash. All my cars since 1971 were the current year and I have not had a car note since 1983. I even gave two girlfriends a car each. That is why I don’t have a million dollars today. But if you become one of my “Greedy Friends” I am sure with my instructions, you can get that million.