Did you ever get the feeling that maybe you should rethink your position just before a deal is closed, then later regret not acting on the feeling? If you have, you experienced what people in sales refer to as a “moment of objective clarity.” You are referred to as a mook once you leave and your money is securely in their hands. A mook is a person who subconsciously knows that they are being taken for a ride but cannot pinpoint why and therefore sign the deal and leave happy on the outside and wondering on the inside. Being a mook is caused by a lack of complete research on the buyer’s part and can be avoided.
Prepare a Contrasting List
If you are considering a reverse mortgage loan, you might want to stop and take a good long look at the reverse mortgages pros and consbefore you proceed. Pros and cons refers to a list that you could make that has the positive and negative sides to each point of anything, whether it be the advantages or reverse mortgage disadvantages. This type of life changing decision warrants a good long look.
Getting What We Wish For
A reverse mortgage is an important step in your retired life that could be the answer to a prayer. We all wish that we will have a comfortable retirement t look forward to but sometimes, you get what you wish for and that could come back and bite you or your heirs if you do not have a firm understanding of the reverse mortgages disadvantages. Understanding what is good about a reverse mortgage is easy.
Avoid Being a Mook
The Internet is the perfect place to start your search into a reverse mortgages pros and cons. Have a pencil and paper at the ready when you conduct your search and dust off that printer. Knowing all the facts is what it is all about. Discuss your pros and cons list with any family that has a stake in your decision and be especially prepared with the reverse mortgage disadvantages. You know that they will want to know about that. Don’t be a mook. Do your research.
A Roth IRA is a retirement plan, the money placed into the account is taxed but the money withdrawn is tax free. There are specific rules that apply to a Roth IRA as well as many advantages to owning one.
The rules for Roth IRA’s are as follows for the funds to be tax and penalty free. The account must be a specific number of years old, this is known as a seasoning period and currently this period is at five years. Also the growth over principal in a fund can only be withdrawn penalty free if the owner is of retirement age.
A person can convert to a Roth IRA from a traditional IRA, and any money in the Roth IRA from the traditional IRA can be withdrawn penalty free. Granted the seasoning period of currently five years must have passed on the money converted. If a Roth IRA owner dies, their spouse will become the sole beneficiary.
If the spouse has a Roth IRA of their own then they can combine the two plans with no penalty. A person can make contributions to a Roth IRA even if they contribute to another retirement plan. This is also true of a traditional IRA but it may not be tax deductible.
A Roth IRA does not demand that withdrawals start at any specified age. In a traditional IRA at a specific age a person has to start taking out the minimal required amounts of money. In a Roth IRA if the money is not needed currently the full amount can be passed to an heir.
To the amount of $10,000 in lifetime earnings can be withdrawn tax free if used by the owner to buy a house for the first time. The house itself must be acquired by the owner, spouse, or direct ancestor. Any of the relatives receiving the home must not have owned a house in the last 24 months.
Listed above are some of the advantages to owning a Roth IRA account. To be remembered as with all retirement accounts there are disadvantages. Research should be conducted when deciding which plan is best for a specific individual.
Roth Individual Retirement Account or IRA is one of the plans that help people have a better option when it comes to choosing a good retirement plan. It is quite similar in structure to the traditional IRA but it’s more flexible and it offers better benefits than its other counterparts. Perhaps one of its advantages is that withdrawing the principal contribution will not include any penalty or taxes. This is the most vital of all the Roth IRA withdrawal rules and it is also the least known. But people need to be knowledgeable of this so they can have the best benefits of the retirement plan they signed up for.
If by chance that any of the withdrawal rules is not followed, or the owner had withdrawn some of the funds before the allowed time, Roth IRA penalty will be applicable. This would be specific to the situation and at times, there are possible exemptions to these rules. Specifically, the penalty will be applied if the owner will try to withdraw the earnings of the principal contribution before he reaches the age of 59.5. When you reach this age, then you can certainly avail of your contribution and its earnings, without any taxes. Also keep in mind that Roth IRA has a five year tax holding period. This means that the principal contribution should not be withdrawn within five years of opening the account. This rule applies regardless of age; the owner may reach sixty but if the account had not reached the tax holding period, then penalties will also ensue.
Undoubtedly, choosing Roth IRA as your retirement plan is a good choice. The strict rules regarding withdrawal and the penalties will ensure that people won’t be making withdrawals prior to their retirement and thus the funds will not be depleted in the process. Leaving the funds intact up until your requirement is a good decision as it will allow you to lead an independent life after your retirement.