Articles Categorized in: Blog
An employer-maintained payroll deduction IRA plan offers Traditional or Roth IRAs to its employees as an employer-maintained SEP or SIMPLE plan. Rollover distributions from traditional, SEP or SIMPLE IRAs may be transferred into another traditional SEP IRA or Roth IRA; however, only one such rollover per 12-month period. Contributions Contributing to an IRA is an effective way of lowering taxable income, but there are limits. Your maximum tax deduction may be reduced or even eliminated once income exceeds certain thresholds,...
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The QQQ ETF is an exchange-traded fund that tracks the Nasdaq 100 Index. It’s best known for providing access to leading tech companies, including Apple and Microsoft, but this fund may be susceptible to fluctuations due to its heavy exposure to cyclical technology stocks. An attractive alternative to QQQ is the First Trust Nasdaq-100 Equal Weighted Index Fund (QQQM). This ETF owns all nonfinancial companies on the Nasdaq 100 index at a lower fee compared to QQQ. It’s a mutual...
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If you want to diversify your portfolio with gold investments, it is crucial that you understand the differences between physical and ETF investments. Key considerations are underlying assets, performance metrics, expense ratio and liquidity issues. Physical gold can be costly to purchase, insure and store. By investing in gold ETFs instead, all these logistical issues can be overcome instantly while offering instant diversification benefits. Costs Physical gold acquisition entails numerous logistical costs. This includes buying, transporting and storing it securely...
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Gold trading is subject to numerous stringent regulations and licensing requirements that aim to combat fraud while maintaining transparent commodity transactions. For example, in the USA ETFs tracking gold are subject to regulations from the Securities and Exchange Commission (SEC). To trade profitably in the gold market, it’s crucial to understand how three main polarities influence price action. Doing so will allow you to avoid hidden pitfalls that could sap your profits. The Commodity Futures Trading Commission (CFTC) The Commodity...
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Self-directed IRAs allow investors to invest in non-equity assets outside of the stock market, such as real estate and promissory notes. It is the responsibility of each investor to scout investments carefully and steer clear of prohibited transactions. Breaking one of the IRS’ rules could cost your entire account in taxes and penalties, including living in property purchased with your IRA or hiring unqualified people to perform work on properties owned by it. 1. Invest in Alternative Assets Alternative investments...
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Gold IRAs allow investors to store physical bullion within their retirement accounts. Under IRA rules, however, collecting items cannot be owned directly by trustees; thus these investments must be handled by an external custodian. McNulty had her AE coins shipped directly to her home and stored in a safe. According to the IRS, this action violated section 408(a)(5). Taxes on Withdrawals IRS rules do not permit collectible investments to be included in retirement accounts, with one exception permitting gold, silver...
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Gold IRAs can provide your retirement portfolio with added diversity by serving as a hedge against inflation while remaining less closely connected to the stock market. Furthermore, they provide tax advantages. Prior to investing in a gold IRA, it’s essential that you understand all of the associated fees. There may be one-time account setup and annual maintenance charges to take into consideration. Tax-deferred growth Gold IRAs have become an attractive option for many investors. They provide diversification, tax benefits, and...
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Gold IRAs can provide an excellent way to diversify and protect against inflation in retirement portfolios, but it’s essential that investors understand the rules before withdrawing funds or taking physical possession of their assets prior to age 59 1/2. This comprehensive guide will cover everything you need to know to liquidate your Gold IRA successfully, from reaching out to your custodian to understanding any tax implications. IRA custodian An IRA custodian can assist in selling your Gold IRA assets safely...
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Gold and silver can serve as effective investments for retirement savings, with many opting to own physical precious metals as opposed to stocks or ETFs that track gold prices. If you are considering an IRA to buy gold, be aware that additional costs will arise in terms of account setup, storage and insurance fees. Costs Attaining gold via an IRA involves finding both a custodian who will accept it and a depository where you can store your asset. An ideal...
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Investing in a 401(k) plan can be complex and confusing, with account fees, fund options, and tax implications all playing into consideration. Managing all these considerations may feel like an immense task! Funds typically can be transferred without penalty into an IRA if you withdraw them before age 55 (with an early withdrawal penalty of 10%), however this doesn’t always work out for everyone. 401(k) Plans 401(k) plans are employer-sponsored retirement accounts that enable employees to save pretax dollars for...
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