The Benefits of Tax Diversification in Your Retirement Plan

Taxes are an often-overlooked aspect of retirement planning. While many Americans are saving diligently and focused on accumulating the biggest "nest egg" possible, many investors may not be fully considering the impact that taxes will have on their monthly income in retirement. This is an important dynamic to understand and will prevent any unnecessary surprises when you enter your hard-earned retirement.

Know your retirement plans

IRAs, 401(k)s, or other workplace plans are great ways to save and invest for retirement. Your contributions are generally made with pre-tax dollars, and you don't pay taxes until you withdraw money. If you have access to a workplace retirement plan or an IRA, take the time to evaluate how your savings may be taxed in retirement. It's important to factor this into your retirement income planning.

One way to potentially minimize the impact of taxes in retirement is to accumulate savings in an account that gives you access to tax-free withdrawals. To achieve this, many people choose a Roth IRA. Strategic planning and dedicated saving in a Roth IRA during your pre-retirement years may give you more options to manage your retirement income stream in a tax-efficient manner.

In general, a Roth IRA may make sense for investors who anticipate being in a higher income tax bracket later in life (examples include marriage, progressing in your career or annual raises), or who prioritize having tax-free retirement assets. Direct contributions to Roth IRAs are only available to those who meet specified income limits (check with your financial advisor or tax professional for details). You invest after-tax dollars into a Roth IRA, but if certain requirements are met, all withdrawals can qualify for tax-free treatment. This is a unique advantage that few other vehicles offer. Your employer's plan may also offer a Roth option, which is a way to save even more money that benefits from this distinctive tax treatment.

You can also convert dollars from a traditional IRA or workplace plan into a Roth IRA. This allows you to put a larger sum into the tax-free category for retirement. A Roth conversion can also create a sizable tax liability in the year the conversion is made, so you need to determine if this strategy is suitable for you. If you want to use this strategy, you'll need to have enough money available outside of the IRA to pay the taxes incurred. Always consult with your tax professional before moving forward with this strategy.

Tax-smart retirement spending

Generally, it's a best practice to allow money with more favorable tax treatment to stay invested for as long as possible to extend those tax benefits. The advantage of owning a tax-diversified mix of assets once you reach retirement is that it helps you manage your tax burden on a year-to-year basis, per your personal circumstances. In any given year, your strategy may include:

· Withdrawals from a workplace retirement plan or IRA funded with pre-tax contributions that are fully taxable

· Distributions from a traditional IRA where a portion is taxable

· The sale of taxable investments where tax may or may not be due

· Withdrawals from a Roth IRA that are not subject to tax and don't add to your taxable income

Managing income levels effectively in a particular year can help limit the amount of taxes due in that year. Depending on your income level, a portion of Social Security benefits may be subject to federal income tax.

Tax decisions should be one consideration in your retirement income strategy. Putting yourself in position to have options as you draw income requires planning in advance. Investing with tax diversification in mind may help you access income with different types of tax treatments in retirement. As you craft your strategy, be sure to discuss the potential tax treatment of your investments with your tax advisor.

Saving Money Does not Mean Giving Up Quality

America's mindset today is "the bigger the better." "The more it costs the more its worth." "Get it now and pay later." These ideas are just not smart. Our government is a prime example with our national debt at all-time record high which no one can pay for.

Frugal living does not mean choosing poverty and it certainly does not mean giving up quality. Many millionaires are millionaires not because they became famous or because they inherited money. They are self-made millionaires who worked hard, made sacrifices and chose to spend their money wisely. I am not saying that all of us that work hard, make sacrifices and spend our money wisely will become millionaires but we can certainly live more more comfortable and careful out from under the stress of owed someone else our paycheck.

Here are somethings you can do to stretch that paycheck:

1. Pay cash. If you can not pay cash do not buy it. Stop using those credit cards. Credit cards are a trap. The only way you should use a credit card is if you pay it off in full every month. Otherwise cut it up! Charging something on a credit card and then paying it out over time ends up costing you double sometimes even triple the original cost of the item. You would be better off saving up a couple of months and paying cash then charging it and them trying to pay the credit card off. The interest eats you up.

2. Eat at home. Pack your lunch and take it to work. Eating lunch out everyday cost anywhere from $ 10- $ 15 a day. If you pack your lunch, you cut that cost down to about $ 2- $ 3 per lunch or even less if you are throwing left overs away at home. That's a savings of $ 160- $ 240 a month. Not to mention, if you cut down the eating out during dinner time and eat at home as a family. That's additional savings on top of the $ 200 a month.

3. Compose a budget. Budget your income at the beginning of the each month. Assign a set portion of your income to your major expenses ahead of time. This will help ensure that you do not waste money. (Major expenses being: Rent / Mortgage, utilities, food, car payment, gas, insurance, savings, misc.) This helps you know what goes where and how much you have left after all is paid so you do not overspend.

4. Buy used or discounted new. You can get just about anything you need either used or deducted new. You just have to know where to look. Do not pay full price for anything. Big Lot's, Ross Dress for Less, Nike Outlet, The Dump, etc. are just examples of stores that you can get discounted new items. These stores have sales and coupons on discounted new items as well. Garage Sales, furniture rent-a-centers, thrift stores and in this day and time the internet is a wonderful resource. eBay is an excellent tool for new and used items. You will be surprised what you will find and how inexpensive it is once you start looking. No one will know the difference. You will become addicted!

The Eight Advantages of Car Hire

Car hiring is a popular way of providing transportation for people to travel a long trip with convenience and comfort. The concept of car hire has been thought about by the evolution of the car business. There are several car hire company to choose from especially online that offers discounts, low rates, and best package deals. All you need to know is to compare different car hire company quotes, analyze them properly, and go for the best.

But having a car hire services also has advantages and disadvantages. And listed below are some of the advantages of hiring a car.

First, it is ideal to rent a car for a long trip. This will keep your own car from getting old before its time. Remember that even the best maintained car can suddenly develop trouble.

Second, it would be more expensive to rent a car, but you would not be putting the wear and tear, or mileage on your own vehicle.

Third, hiring a car is also beneficial if you are traveling to a mountainous places which would require heavy loads of acceleration going up and would require heavy brakes. You can put those hard miles on the rented car rather than putting it on your own car.

Fourth, you have many options of which car to select from and you can select a car that is appropriate for the current trip. It also allows you to get a more good look at something other than what you usually drive.

Fifth, you can find a car rental companies in almost every corner of the world, giving you the option to just explore the world better.

Sixth, renting a car can be cheaper then airline travel. This is very true when traveling with a large family or group. The cost of the car hire may be equivalent to one airline ticket thus, hiring a car will give a family substantial savings that can be spent on a vacation.

Seventh, renting a car provides convenience of driving where you want and when you want. This also saves time when traveling. You will also have an opportunity to visit a place where you never been before. Car rental companies have global positioning system that monitors your movement which enable you to roam wherever you want to.

Eight, hiring a car allows you to travel at own own pace, time, and convenience. You can stop where you are at different sites for leisure. It also allows you to pack the type of food you want to, stop when you want to stretch or take a break. With a rented car that you have, you are in control rather than surrender to the delays that are common with trains or bus travel.

Comfort, convenience, saving energy and money, this puts car hire above other traveling options. With this and the above listed advantages, you do not need to think twice to avail of this car hire service.

Critically Important Questions to Ask Yourself Before Applying for That Loan

Loans are easy to apply for and receive in our society. So easy, in fact, that sometimes we do not give a second thought whether this, or another loan, is in our best financial interests. There are 5 key questions that can tell you whether a loan is right for you, financially.

If you answer these questions honestly and creatively, you may be surprised at the consequences.

Ready to start? Let's go.

Question # 1. Can I really afford it?

This basic question is sometimes overlooked. Some people think that as long as there is some money left over from the pay each week or month that it's fine to put this towards another loan. Wrong! Without you understand your true income, expenditure, savings goals and retirement goals, how will you know whatever the money you have after each pay can actually be applied to a loan?

Setting up your personal / family budget is necessary if you want to know what you can afford. These can be found by searching on the Internet.

There are certain basic laws that apply to spending whether you know them or not. Some of these are:

a) If you regularly spend more than you earn you are setting yourself up for lifelong poverty.

b) If you borrow to buy short-lived assets (eg TV, DVD, car, boat, etc) the interest and repayments can continue at the same rate long after the asset has lost its value. That makes them a very expensive item.

c) If you pay for items like clothes and other household items by credit card it makes the items a lot more expensive than you think. Especially when the interest rate is around 13 - 15% per year.

d) Credit card debt, while easy to acquire can be very dangerous if you only pay the minimum each month.

Question # 2. Do I really need it?

Advertising today is so sophisticated that it makes you think there are so many things that you just can not do without. However, just take a minute to ask yourself these questions:

Do I really need the updated car? Is not the current one good enough?

Is not our furniture still serviceable without resorting to an upgrade?

Do I really need all the latest electronic wizardry?

Are all the latest fashions a necessity? Am I really a better, more likeable person by buying them?

The purchase of these items is often made at the expense of your future financial well-being and overall happiness. Surely, the fleeting happiness of today's purchase wears pretty thin, compared to the worry and stress of over-extended credit and unpaid bills.

It is best to try every avenue before resorting to a loan.

Question # 3. How will this loan affect my financial future?

A loan can have an adverse effect on your financial situation through many ways. Some of them are listed below:

a) If you default on a loan it can make it much harder in the future to borrow again.

b) If you damage your credit rating your borrowing costs can increase.

c) Borrowing for an asset which useful life is less than the life of the loan is a sure way to pay a lot more than the worth of the asset. Money that could have paid down credit cards or been used for savings.

d) Saving for things you need will put you in a better financial position and increase you borrowing potential for your mortgage.

Question # 4. What else could I do with the repayment money?

If you were to decide to defer or not purchase the item on credit, imagine what you could do with the money?

- You could put it in a savings account. Save for holidays, the car upgrade, kids college fees or home renovations.

- You could start a retirement savings plan.

- You could pay off the credit cards in double quick time. If their interest rate is higher than any other of your debts, pay them off first.

- You could pay extra cash each month or fortnight off your mortgage.
Imagine how you'd feel once all the debt was gone and you were free to purchase those things you need for cash.

Are not these ideas better than committing yourself to more debt and worry?

Question # 5. Can I still purchase this item without resorting to a loan?

If there are items that you really need and you do not have the funds to pay for them, what else can you do?

Try these ideas:

- Do you have some other assets that are no longer being used? Sell ​​them and use this money for your new purchase.

- Do you really need 2 cars? Why not sell 1 and use that money for your new purchase?

- What about increasing the 'cash-in'? You could apply for a higher paying job. You could get a second income. Maybe start a home based business on the Internet.

- Why not cut down on your weekly or monthly living expenses? Buy generic products, only buy necessities, bargain with sellers and commit to only buying items at less than list price.

These are just a few suggestions to help you think twice or even three times BEFORE you go to apply for that loan. Your financial future is at stake here. If at all possible live within your means and save for what you need. You'll be happier and more stronger financially as a result.

Business Advertising Choices

Even in print advertising choices alone, there are tons of options. With so many options, how do you know which one is right for you? Not all options reach as many people, are as effective or even get the results you are looking for.

One of the most noted ways of advertising is through a local newspaper. This is a technique that was heavily relied on in the past but as technology has grown, more avenues have been opened. Unfortunately, there are not many people that refer to a newspaper anymore when they are looking for sales, information or good deals. Many will just turn to the computer or reference things as they are walking or driving around their local area.

As a business, you also need to consider your budget. Do you have a lot of money to spend with advertising that might or might not work? If not, here are some advertising choices to consider that will not break the bank.

Vinyl banner: a vinyl banner can be as large or as small as you want it. You can get vinyl banners customized or order them premade and are one of the most inexpensive yet most effective advertising methods a business can use. Many businesses rely on banners as a large part of their advertising campaign.

Sidewalk signs: Catch people's attention when they are walking or driving by. This works especially good for those businesses that rely on walk in business.

Gator board and Foam board signs: Although these are not as durable as a vinyl banner, they can also be used outside but should be taken in every day or in the event there is bad weather. You could also team up with partners and display a gator board sign in their shop in exchange for doing something for them.

The business advertising choice is yours but do not discount the more budget friendly advertising methods because often times they are the most effective.

3 Things to Consider When Comparing Your Financial Aid Packages

1. Rank all of your schools according to their rankings nationally

The first thing that you need to do is to rank all of the schools that you have been accepted to. You will find these forms that can help you to rank these schools in your guidance office or the Internet. You can go to the US News Rankings to find where the schools on your list are ranked nationally. There are many factors to be taken into account when you are ranking these schools such as their retention rate, size of classes, percentage of classes been taught by TA, number of successful alumnus, rates of graduates finding employment, etc. This way you can see how your schools stack up to the schools around the country. You want to attend the best school on your list that you can afford. This process has to be very practical and doable for you and your family.

2. Rank all of your packages according to the amount of free money offered to you

Free money is any money that you and your family don't have to pay back. These monies will come under scholarships and grants (Federal grants and State grants). Rank the school that gave you the most free money number 1 down to the school that gave you the least amount of free money. Keep in mind that your favorite school may not give you the best package. This is a practical and non-subjective process. They will offer you a package based on your household income and assets depending on whether the school is private or public school. The schools will give you their money and the government's money based on your financial need and the type of profile that you have created.

3. Rank all of your schools from the school that you like to attend to the school that you are the least likely to attend: Conquering college attendance

Now, start with your favorite school. This is the number 1 school that you would like to attend from your accepted list to the least favored school on you list. This is that one school that you would like to attend if you and your family can afford it without going into deep debt. Again, here, you and your family have to be practical and realistic because neither you nor your family should go into deep debt to get your education. You are investing in your future but your parents are getting closer to retirement so don't ask them to take loans or refinance their home to send you to your dream school. Remember that you are going to have to pay for your loans and that you are not going to pay off their debt. It is your future, so invest wisely.

One consolation here is that you and your parents can always contact the financial office and explain your family's financial situation and ask them if they can give you a little more help because you would really like to attend their institution.

Computer Repair - Peak Performance Is Important

Computers are a part of daily life, both personal and professional. If your computer was to encounter a problem your life could have been seriously hurt. It does not matter if it is a hardware problem, software problem, or a spyware or virus infection - a broken computer stinks! Since computers are complex pieces of machinery most people will seek out professional help when it comes to computer repair.

Computer problems can be hardware related. This means that a mechanical part of the computer fails. Most individuals do not have the expertise needed to perform this type of computer repair themselves. Expert help is usually thought for problems like hard drive failure, motherboard failure, or CD / DVD drive failures.

Virus and spyware infections are potentially serious issues that must be addressed. Most everyone runs some form of virus protection or spyware protection on their computers. However, if the programs are not set up to date a virus or spyware infection can pass through the program. Even if you keep your virus protection current new viruses are being created all the time. You might have had the unfortunate luck of going to a website that harbored this new virus before your anti-virus software was updated to include the new signature files. There are free tools on the internet that allow a person to attempt to remove the virus or spyware on his or her own. Some of these malware programs are so bad that the services of an expert in computer repair need to be obtained to restore the computer to a virus free status.

Software problems are also a reason a person would bring his or her computer to be repaired. Files can be corrupted, and this can cause a program to operate in strange ways. Again, a person can try to repair the problem on his or her own, but more often than not the computer is brought to an expert for repair.

When thinking about computer repair you might only think about it in terms of a problem with your PC. However, preventative maintenance and computer upgrades fall under the category of computer repair. Replacing an aging video card, adding additional RAM to your computer, or upgrading a hard drive to a solid state drive are all things that you can do to make your computer run better. You are not bringing it to an expert when it is "sick" but you are taking it for a "well visit" to make sure it runs as well as the day you bought it home from the store.

A computer that is working at peak performance is important. If you have a PC that is not working the way it should then computer repair is necessary. If you have a PC that is running satisfactorily, but you would like to see perform better, then computer upgrading services performed by a repair professional could be just what the doctor ordered.