| Q. I am a married homemaker, with
no employment outside the home. Can I invest in a retirement
plan?
A. Yes. As long as your husband is funding a retirement
plan, and you file taxes jointly, you can place up to $2,000
a year into an IRA account in your own name. The IRA is not
tax deductible, but the interest will grow tax-free. This
is a big plus.
Q. If my job does not provide a retirement account other
than Social Security, can I fund a retirement account on
my own?
A. Yes. You can fund an IRA or Roth IRA account on your
own. The IRA will be tax-deductible, and the interest will
grow tax-free. You pay taxes on money you take out at retirement.
The Roth-IRA is not tax-deductible, but the funds will grow
tax-free. When you take money out of the Roth-IRA you will
not have to pay taxes on the funds. What you will have to
decide is, whether you want the tax deduction now or at retirement?
Each fund has minimum requirements.
Child Retirement Account
Q. Can I get a retirement account for my child or grandchild?
A. Believe it or not, yes you can. The government has provided
for a Roth IRA for your child or grandchild. The child or
grandchild must get paid for a job around the house or at
the neighbors, parents and grandparents can then place the
money in a Roth IRA for retirement or other uses mandated
by the government.
Q. Should I consider Long-term care insurance before I retire?
A. Yes. Long-term insurance is a very good idea for middle
and upper-middle income citizens. Rich people will be able
to pay for there own long-term care and poor people or those
with no substantial money or assets can qualify for Medicaid.
The middle and upper-middle income will be hard hit by the
high cost of long-term care if they are not insured.
Q. I heard one could use a retirement account to buy a house
or fund college. Is this true?
A. Yes. The government allows us to use a Roth IRA:
A) Up to $10,000 to purchase a home if you are a first time
homebuyer.
B) Up to $10,000 to fund a college education. There is a
five-year minimum time investment before funds can be used
for home buying or education.
Q. Are there books to read on retirement?
A. Yes. See MsFinancialSavvyBooks.com Retirement Bookstore
Remember that tax laws can change yearly, therefore you
should check with a certified public account (CPA) before
making decisions based on tax laws. You can also go directly
to the Internal Revenue Service Website link on our Business
and Financial Guide.
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