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How Does The My RA Work?

Trapped in my office by the Snowpocalypse that hit Atlanta on last Tuesday, I had the opportunity to watch the State of the Union (#sotu) Address delivered by President Obama.   There is a whole lot of financial topics we could talk about on Your Smart Money Moves, but I’d like to review the topic around the new proposed investment vehicle called the MyRA.  Since we already have the SEP-IRA, SIMPLE-IRA, Rollover IRA, Roth IRA, Traditional IRA, Beneficial IRA, etc., wouldn’t it have just been easier to call it the My IRA instead of the new urban dictionary word called MyRA? The concept behind the MyRA account would be a new type of bond within a Roth IRA-type umbrella.  Contributions would not be tax-deductible, but earnings would be tax-free when you withdraw it in the future.  It’s unclear about how closely the rules on this account shadow the rules of the current Roth IRA. The investment vehicle would be a new ...

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Charitable deductions – Are these meant for donations inside our country or outside of our country?

I happened to be watching 60 minutes the other evening with another interview with President Obama.   After the interview, they did a short piece on Howard Buffett who is slated to take over as Chairman of the Board for Berkshire Hathaway in the near future.     Mostly, the story was about Howard being a farmer and the great charitable work he is doing around the world.    They discussed that Warren Buffett gave over 31 billion dollars to the Bill Gates foundation which is also spending a great deal of money helping those that are underprivileged around the world. While I was watching the program, several things occurred to me that I thought might of interest for the smart money moves readers.  First and foremost, it seems to me that we are very concerned with how to raise more revenue in this country to balance out our budget.   Part of the proposed solution is to potentially increase the estate or death tax ...

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4 Reasons Why Gen X’ers Shouldn’t Plan On Receiving An Inheritance

At 41 years old, I fit into that whole segment of the population called Generation X.  The media classically defines this generation by people who were born between 1965 and 1979.  For those that fall within these age brackets, I think you better start planning not receiving much of an inheritance.   I don’t say this because your parent’s bumper sticker says “I’m spending my children’s inheritance”, but really because of 4 things I see happening over the next twenty years that may spend it for you. Your parents have reached the age of 65 – According to the Center for National Health Statistics (www.cdc.gov/nchs), men who reach the age of 65 have a normal life expectancy of 82 years old.  For women it is even better with the average female who turns the age of 65 having a normal life expectancy of 85 years old.   With social security in sore need of a major overhaul and Medicare costs continuing to ...

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