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About Retirement Calculator, Inc.
Retirement Calculator, Inc. provides the tools and resources necessary to assist you in making critical economic decisions regarding your retirement future.CBS The Early Show
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Asset Allocation
Often financial "experts" make asset allocation difficult to understand. My goal in this series of articles is for you to understand asset allocation thoroughly, in an easy to understand format.- FREE Retirement Calculator recommended by Ray Martin on the CBS Early Show - Watch the video clip
- FREE Retirement EBook written by Bill Losey, America’s Retirement Strategist
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| NATIONAL OVERNIGHT AVERAGES | TODAY | +/- | LAST WEEK |
| 30 yr fixed mtg |
|
5.07% |
|
5.01% |
| 15 yr fixed mtg |
|
4.36% |
|
4.36% |
| 5/1 ARM |
|
3.94% |
|
3.90% |
| 30 yr fixed jumbo mtg |
|
5.83% |
|
5.83% |
| 5/1 jumbo ARM |
|
4.48% |
|
4.50% |
| NATIONAL OVERNIGHT AVERAGES | TODAY | +/- | LAST WEEK |
| $30K HELOC |
|
5.12% |
|
5.13% |
| $50K HELOC |
|
4.84% |
|
4.85% |
| $30K home equity loan |
|
7.81% |
|
8.14% |
| $50K home equity loan |
|
7.69% |
|
8.10% |
| $75K home equity loan |
|
7.71% |
|
8.14% |
| NATIONAL OVERNIGHT AVERAGES | TODAY | +/- | LAST WEEK |
| 36 month new car loan |
|
6.43% |
|
6.69% |
| 48 month new car loan |
|
6.57% |
|
6.83% |
| 60 month new car loan |
|
6.62% |
|
6.88% |
| 72 month new car loan |
|
5.07% |
|
6.03% |
| 36 month used car loan |
|
6.85% |
|
7.06% |
| NATIONAL OVERNIGHT AVERAGES | TODAY | +/- | LAST WEEK |
| 6 month CD |
|
0.80% |
|
0.80% |
| 1 yr CD |
|
1.18% |
|
1.22% |
| 5 yr CD |
|
2.59% |
|
2.60% |
| 1 yr IRA CD |
|
0.88% |
|
1.12% |
| 5 yr IRA CD |
|
2.39% |
|
2.39% |
IRA's Simplified
Colleen Mulder-Seward, MBARetirement Calculator, Inc.
retirementira.com
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For those who are at least 50 years old and planning for retirement, the information available about IRAs can be daunting. This article gives you the key information you need to know in a nutshell. The current limits on IRA contributions Contribution limits The amount you can contribute to your IRA account each year is determined by the IRS. The age limit on when you can make contributions is limited to 70 ½ with a Traditional IRA. No such limit applies to the Roth IRA. Catch-up contributions You qualify to make additional catch-up contributions if you will have reached age 50 by the end of the year. Due date for contributions The due date for IRA contributions is the same for filing your tax return, not including extensions. Thus, for most people, this means that contributions must be made by April 15. The table below shows the contribution limits imposed by the IRS.
Minimum required distributions (MRD) The Internal Revenue Code established these minimums to ensure that you actually use your Employer Sponsored Retirement Plan account balance for its intended purpose - retirement. Unless an earlier date is specified by your plan, you must take your first withdrawal (MRD) according to the following table:
The IRS issued final regulations relating to MRDs from retirement accounts (including 401(k) plan accounts, IRAs, and 403(b) plans) on April 17, 2002, with an effective date of January 1, 2003. The new rules resulted in new life expectancy tables with longer expectancy factors, which generally result in smaller required distribution amounts. In General, your MRD is determined by dividing the adjusted market value of your tax-deferred retirement account as of December 31 of the prior year, by an applicable life expectancy factor taken from the Uniform Lifetime Table.
Example: Mary is a retired Traditional IRA account owner who turned 70-1/2 on March 31. On December 31 of last year, the ending balance in her Traditional IRA account was $100,000. To calculate her MRD for this year, divide $100,000 by her life expectancy factor of 26.5 years. Her distribution amount is $3773.59. Account balance Life expectancy factor = MRD Thus, $100,000 =
$3773.59 MRDs are subject to federal income tax and may also be subject to state and local taxes. MRDs distributions are not eligible for rollover. Distributions received before age 59 1/2 from a Traditional IRA are subject to an additional early distribution penalty tax of 10%, unless an exception applies. Distributions received before age 59 1/2 from a Roth IRA may be made tax-free. This only applies to withdrawal of contributions, not the earnings on the contributions. Consult a tax professional before accessing money in your IRA. Read IRS Publication 590 Individual Retirement Arrangements (IRAs), for more information. How do I keep up-to-date on the latest news impacting my retirement? To keep informed about retirement topics, try a FREE membership to Retirement Intelligence Information Services. At no cost to join, you will receive a bi-monthly newsletter full of financial information to inform and empower you to have a successful retirement. As an added bonus, www.retirementcalc.com will include the Retirement Calculator Software Version 2.0 (a $24.95 value seen live on CBS TV) for FREE. Copyright © 2008, Retirement Calculator, Inc. All rights reserved.
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Retirement Knowledge Center
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Analysis of the Economics of Early Social Security Withdrawal
Robert J. Phillips
Chief Retirement Consultant
Deciding whether or not to take the early withdrawal of social security at age 62 can be difficult. If you need this income at 62 to fund your retirement the decision is fairly straightforward. Take it early! On the other hand, if you have another source of revenue to fund your retirement your decision will be primarily based on lifestyle, health and investment preferences.
Several factors can affect your decision. First is your life expectancy. If you are in good health and have a family history of living beyond 90 then waiting for full benefits may be best. Two other factors impact this decision. First and most important is the value of money or your expected return from your investments. If you are using other investments instead of social security to fund your retirement you should use the rate of return of these investments as your value of money. There is another way to look at the value of money. If you do not require the social security money to live, you can invest the distributions for the future. The rate of return of this investment is your value of money. If your investments will make larger returns such as stocks this would favor taking the early withdrawal.
The last factor impacting your decision is inflation. Social security includes an annual adjustment based on inflation. You cannot control this variable but you should be aware of its impact. If future inflation is significant it will favor a later full distribution
FREE Social Security Calculator:
Find Out Your Breakeven AgeWe developed a calculator to assist in analyzing the impact of taking early benefits at age 62 or waiting for full benefits at age 66 to 67 depending on the year you were born...If you were born in 1960 or later your full benefits will begin at age 67 and your reduction for early benefits at age 62 will be 30%. If you were born between 1946 and 1960 your full benefits begin as early as age 66. We have included a chart that summarizes information.
To use the calculator you need to input your year of birth. You also need to input a value of money up to 10% and a projected inflation adjustment. The calculator analyzes income generated over time from both the early and full benefit investments. It calculates the age at which full social security will catch up and breakeven with the early withdrawal. If you were born before 1960 your breakeven age will be impacted by the year you were born. An early breakeven age favors waiting for full benefits.
The social security calculator is not the final answer whether to take an early withdrawal but it does give you additional economic data to assist in that decision. Ultimately you must balance income, investments and lifestyle to optimize your enjoyment during your retirement years.
