Are Americans Ready?
The long second half of the retirement game
- 69% believe there is at least some chance that they will outlive their savings.
- 14% think they definitely will!
How to fix this? Save as much as you can as soon as you can – and if it’s getting late in your career, take advantage of the $1,000 IRA catch-up contribution. In 2016, individuals age 50+ can contribute $6,500 to their IRA. Try to move as much money as possible to tax-free territory like Roth IRAs and leverage life insurance.
For some time now, the cost of a college degree has been rising at perilously high rates, and as a result, the dream of one day going to college, for many, remains just that … a dream. With college tuition and associated costs rising so dramatically, it’s no surprise that people are looking for new and creative ways to save for these expenses. One such alternative method involves the use of a Roth IRA over more traditional college savings vehicles, such as 529 plans and Coverdell education savings account. That may sound bizarre. (A 529 Plan is an education savings plan operated by a state or educational institution.) After all, why would anyone use a retirement account to save for education expenses when there are accounts specifically designed to help plan for those costs? Nevertheless, here are three reasons why it may not be as crazy as you think.
Copyright Ed Slott and Company 2014 | By Jeffrey Levine, IRA Technical Expert
Life insurance and Roth IRAs have a lot in common. They are both often used as wealth transfer tools to help facilitate an efficient transfer of assets from one generation to the next, and they are both able to provide a tax-free legacy, just to name a few. Despite their many similarities, however, Roth IRAs and life insurance are very different and the rules that apply to one don’t always apply to the other. In fact, more often than not, that’s the case. Below, we discuss three differences between Roth IRAs and life insurance.