Retirement Articles This Week
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We'll focus on websites and publications that help prepare and plan your retirement and personal finance decisions. Visit us each week. Send us suggestions.
In 2017, the annual HSA contribution limit for individuals is $3,400 and $6,750 for families.
Currently, HSA's are only available to people whose health insurance plans have high deductibles, $1,300 for individual coverage and $2,600 for families.
HSA's offer a triple tax break. Contributions are tax-deductible, assets grow tax free, and distributions are tax-free if used for qualified medical expenses. Once you turn 65, you can use HSA funds for any purpose penalty free, but if used for nonmedical expenses, they are subject to income tax.
Brad Thomas is the editor of The Forbes Real Estate Investor, he is extremely knowledgeable in the REIT sector and helps retiree's with income generating REIT ideas. Make sure to consult your investment advisor for income ideas!
REIT (real estate investment trust) income should be a part of the retirement process and investors should take a closer look at the asset class that offers an outsized dividend yield along with very predictable sources of income.
However, REITs should not be painted by the same brush - just because you are an investor in a REIT does not guarantee that the dividend income will be sustainable. Most all retirees are counting on the income to fund expenses or enjoy their quality of living, a dividend cut could mean be devastating.
Here's one suggestion and a link to the Forbes article:
Omega Healthcare (OHI) is the largest “pure play” REIT that invests in Skilled Nursing buildings. As of Q4016 Omega had an operating asset portfolio of 981 facilities with approximately 99,000 operating beds. These facilities were spread across 79 third-party operators and located within 41 states and the United Kingdom.
On Tuesday Fidelity Investments slashed online retail commissions for U.S. stock and exchange-traded fund trades to $4.95 from $7.95.
Just hours after Boston-based Fidelity Investments said it would slash its standard commission for online stock trades and ETFs by nearly 40% to $4.95, its San Francisco-based rival, Charles Schwab, matched the lower price.
The Dow Jones industrial average closed about 30 points higher and notched its ninth straight record close, with Dupont and 3m contributing the most gains.
Dow closes at 20,775.
The NASDAQ Dividend Achievers Index is made up of 272 stocks with 10+ consecutive years of dividend increases that meet certain minimum size and liquidity requirements.
The downloadable Dividend Achievers Spreadsheet List below contains the following for each stock in the index:
Name and ticker
Forward price-to-earnings ratio
Sixty percent of employer 401k plans offer a Roth feature....Start saving now for tax free withdrawals in retirement! Call your plan administrator and see if your employer offers the Roth.
- DOW 20,269
- NASDAQ 5,734
- S&P 2,316
The U.S. stock market extended gains to close at a fresh record Friday as investors cheered President Donald Trump's promise to introduce tax reforms in the next few weeks.
The S&P 500 climbed 8 points, or 0.4%, to close at 2,316. The Dow Jones Industrial Average added 98 points, or 0.5%, to end at 20,270 and the Nasdaq Composite Index rose 18 points, or 0.3%, to close at 5,734.
All three benchmarks set new records for a second day in a row.
You may have received a 1099-R in your January mail if you did a distribution from an IRA or rolled over a 401k or 403b employer plan into your IRA.
What the 1099-R tells you:
Box 1 of the form shows the total amount of your retirement fund that was distributed. The more important amount to you right now is in box 2a, the taxable amount. For direct rollovers from one qualified plan to another, that amount is generally zero.
Also check box 7, the distribution code. A letter or number should be here, explaining to the IRS exactly why your retirement money was taken out and just what was done with it. Direct rollovers to another qualified plan are coded with the letter "G." This includes transfers to another company's 401(k) plan, a tax-sheltered 403(b) annuity, a government 457(b) plan or an IRA.
Three brokerage firms stand out:
- Charles Schwab
- TD Ameritrade
This is the newly updated 28-page IRS Publication 560 which covers retirement plans that can be set up and maintained for Small Businesses. Includes SEP, SIMPLE, and Qualified Plans.
Go to Social Security to find an estimate of what your benefits will be at age 62, at your full retirement age, and at age 70.