As more and more baby boomers prepare to retire and as people seem to be retiring at an earlier age, the importance of saving for retirement has become increasingly apparent. Many people find themselves worrying that they will not be able to maintain their current life style once they retire. However, the strategies provided in this book will help you turn your IRA into a wealth-building tool.
The Complete Guide to IRAs and IRA Investing will show you how to take control of your investment future and make sure your investments are performing for you. You will learn about Roth IRAs, traditional IRAs, SEP IRAs, SIMPLE IRAs, and self-directed IRAs, and you will learn how to choose the right plan for you. You will learn about the Economic Growth and Tax Relief Reconciliation Act of 2001, rules regarding distribution, rollovers, transfers, conversions between accounts, valid adjustments, adjusted gross income, annual contribution limits, the advantages and disadvantages of the various IRAs, potential penalties, tax deductible contributions, myths and truths about IRA investing, and IRS guidelines.
In addition, we will show you how to open an IRA; how to choose the right financial advisor for you; how to manage vital information and deadlines; how to set up your account with a custodian or IRA administrator to deal with the day-to-day activities, such as depositing contributions and executing and settling transactions; and how to use your IRA to invest in mutual funds and stocks. You will also read about the specific rules relating to life insurance, collectibles, foreign investments, and real estate and find the answers to common questions, such as “How do rate returns affect my retirement income?” “When should I begin saving?” “What IRA am I eligible for?”
This new book will provide you with all the information you need to know about IRAs and IRA investing. The Complete Guide to IRAs and IRA Investing combines essentials, insight, and insider secrets to help you secure financial victory after retirement.
Foreword 13
Introduction 19
Section 1 Understanding Iras 23
Chapter 1 What is an IRA? 25
Your Ticket to a Secure Financial Future 25
History of IRAs 26
How Does an IRA Work? 30
IRAs and Income Tax 32
Chapter 2 Traditional IRAs 35
Tax Benefits 35
Types of Investments 37
Rules and Restrictions 38
Withdrawals 41
What You Cannot Do With a Traditional IRA 43
Common Strategies with a Traditional IRA 46
Simplified Employee Pension (SEP) IRAs 54
Advantages of an SEP 58
Education IRAs: Coverdell Education Savings Accounts (CESAs) 60
Simple Iras 62
Chapter 3 Roth IRAs 65
Rules and Restrictions 65
Conversions and Rollovers from Other IRAs and Retirement Plans 73
Reporting a Loss on a Roth IRA 78
Common Strategies with Roth IRAs 79
Chapter 4 IRAs, 401 (k)s, Profit-Sharing Plans 83
Profit-Sharing Plans 83
Stock Bonus Plans 86
Money Purchase Pension Plans 86
Employee Stock Ownership Plans (ESOPs) 87
Defined Benefit Plans 87
Target Benefit Plans 88
Keogh Plans 88
IRAs and 401 (k)s 89
What to Do with Your 401 (k) When You Leave a Company 90
Section 2 Setting Up And Managing An Ira 95
Chapter 5 How to Set Up an IRA 97
What are Your Investment Objectives? 97
How Much Do You Need for Retirement? 98
Considerations in Planning Your IRA 99
Leaving an IRA to a Charity 104
When Should You Open an IRA? 104
How to Find an IRA 107
Financial Advisors 111
Contributions 112
Achieving Your Goals 116
Chapter 6 Your Portfolio 123
Building Your Portfolio 124
Investment Styles 126
Modern Portfolio Theory 132
Asset Allocation 144
Your Portfolio 149
Chapter 7 Self-Directed IRAs 171
The Major Players 172
Choosing anAdministrator 173
Funding a Self-Directed IRA 177
Checkbook Control 178
Managing Risk 179
Real Estate 181
Real Estate Options 184
Taking RMDs 192
Loans 192
Precious Metals 193
Prohibited Transactions 193
Section 3 Making Withdrawals From An Ira 197
Chapter 8 Early Withdrawals 199
Early Distributions - 59V2 Rule 199
Early Withdrawals of Nondeductible Contributions from Traditional IRAs 205
Early Withdrawals from Roth IRAs 206
Chapter 9 Required Minimum Distributions (RMD) 211
When Do You Begin Taking the RMD? 211
Calculating Your RMD 212
How Do You Take Your RMD? 214
RMDs for Multiple IRAs 215
An Extra Amount Withdrawn One Year Cannot Be Credited to a Later Year 215
Penalty For Failure to Take Your RMD 216
Effect of RMDs on Your Finances 217
Chapter 10 IRAs and Your Taxes 219
Income Tax Brackets 220
Basis 223
Tax Deductions for Losses on Investments in Your IRA 225
Investments in Taxable and Non-Taxable Accounts 227
Additional Tax Penalties 229
Section 4 Iras And Estate Planning 231
Chapter 11 Planning for Your Beneficiaries 233
Tax Consequences of Inheriting an IRA 234
Your IRA and Your Will 239
Naming Your Beneficiaries 240
Your Custodial Agreement 248
Stretching an IRA 249
Convert to a Roth IRA 253
Keep All Your IRA Documents in One Place 254
Chapter 12 When You Inherit an IRA 255
How Large is Your Inherited IRA? 256
Do You Need Cash? 257
What Are Your Tax Liabilities? 257
Life Expectancy Rule 258
The First Step: Name a Successor Beneficiary 259
Spouse Sole Beneficiary 260
Non-Spouse Beneficiary 263
Multiple Beneficiaries 265
Reporting Distributions From an Inherited IRA 268
Chapter 13 Special Circumstances 269
Divorce or Separation 269
Common IRA Mistakes 274
What to Do When You Make a Mistake 277
Ineligible Contribution to a Roth IRA 280
Private Letter Ruling 281
Chapter 14 Your IRA and the Economic Crisis of 2008 - 2009 283
Things May Never Be the Same Again 284
Perception and Trust 290
What the Government Can Do 292
Managing Your IRA in a Down Economy 293
Appendix A Acronyms 299
Appendix B Glossary 303
Appendix C Useful Web Sites 317
Appendix D Federal Government Publications and Forms 329
Appendix E Lifetime Expectancy Tables 333
Bibliography 351
Author Biography 355
Index 357
MarkFriend
Posted February 24, 2012
Martha's knowledge of both IRA's and IRA Investing will help you move comfortably toward your goals for retirement.
This well written book will take much of the guess work out of your future. To garner information through someone else’s experience is much better than learning by your own mistakes.
openyourmind
Posted February 25, 2010
The Complete Guide to IRAs and IRA Investing: Wealth Building Strategies Revealed-by Martha Maeda
This book could not have become available at a more opportune time. For the past two years the United States has suffered through the worst recession since the Great Depression and most economists agree that we have just barely started to see some improvement. Author Martha Maeda's timely guidebook to IRA investing acknowledges that little bit of good news, and then gives us a foundation for taking advantage of IRA investing as a means to ensure that our coming retirement years will be financed properly.
She examines the "insecurity" of Social Security and discusses at length how the usual time honored methods of investing in this country have changed and what other options are available. IRAs are safe, reliable, and in the current economy provide an investment haven for the large upcoming wave of baby boomers searching for a conventional, risk free way of saving for retirement. For those not familiar with the tax rules of IRA investing Ms. Maeda spells out who is eligible, how to set up an account and how to optimize your return. In simple, easy to understand language she gives the reader a blueprint for systematic, "painless" wealth building for the future.
We live in uncertain financial times, but after reading The Complete Guide to IRAs and IRA Investing and utilizing the information found therein you will feel confident that your future can be as secure as you always worked so hard for it to be. Rating: ****
AShrum
Posted January 27, 2010
The Complete Guide to IRAs and IRA Investing: Wealth-Building Strategies Revealed is a simple yet thorough guide to explaining how individual retirement accounts exist and operate, and how they can be beneficial to this generation's retirement plans. As an inexperienced twenty-five year old woman, I had no idea what an "IRA" was until I picked up the book and, at first, had no intentions whatsoever of learning about them. Martha Madea's book honestly changed my mind and has woken me up to the realization that where we stand financially in this world, we cannot depend on Social Security by the time my generation retires.
And the best part? It wasn't confusing at all! From it's easy-to-understand explanations of both standard and flexible accounts, to it's educated and detailed rules for helping investors ask correct questions in order to determine what plan is right for them, this book definitely accomplishes all the goals the author set. Even at 362 pages and four sections, this guide is easy to follow and read. I'd recommend this book to anyone looking to not only make the best choices for their personal financial plans, but also to anyone who wants to understand the realities of where our generation is heading, and how we can prevent ourselves from sinking before it's too late.
Janetmorrisgrimes
Posted January 13, 2010
For those who understand little about investment portfolios, the numerous options available can be daunting. This book seeks to simplify and explain the differences between standard Individual Retirement Accounts and the more flexible Roth IRA's.
The Individual Retirement Account has become more of a focus here in the United States as the average worker often changes jobs and companies several times throughout their working career. Gone is the day of working 45 years for one company and resting on a pension plan throughout retirement. Explaining everything from the frequent changes to the laws governing privately funded IRA's to the definitions and terminology used, this book sorts through the details so that an educated decision can be made regarding these issues.
Most helpful are appendixes at the back that include a glossary of terms and an explanation of acronyms used in the financial industry. IRA's are formed on the belief that long term investments offer the greatest stability whether the stock market rises or falls. After reading this book, the reader will have the awareness to make the best choices with the greatest financial reward for his or her family.
cs3597
Posted December 29, 2009
If you are in your '20s and just starting a career path, Individual Retirement Arrangements, or IRAs, probably mean nothing to you. Unfortunately, with the aging baby boomer generation, Social Security won't mean anything when today's 20-year-olds hit retirement, either. Considering the current state of the economy and the projected deterioration of Social Security, the American work force must take retirement into its own hands. IRAs are only one way to save money that will accrue interest upon retirement. Martha Maeda's book "The Complete Guide to IRAs and IRA Investing: Wealth-Building Strategies Revealed" provides a thorough explanation of income investments that just might change the way the current working generation retires.
According to Maeda, there are no books out there that can tell the future retiree how to invest his or her money now, but there are many specialized books for hard core investors, explaining the subtle nuances of investing in IRAs. You don't need to be a hard core investor to want a brighter financial future for you or your loved ones, and Maeda's book will help you secure an ideal retirement.
Since the current work force can neither rely on the government nor rely on their employers to secure a financially comfortable retirement for them, Maeda explains the rules to IRA investing including what types of IRAs exist and how to obtain them through a financial institution. Helpful charts and figures compare IRA investments in a nutshell. Maeda also follows the life cycle of an IRA, from its opening to its distribution, and even if it is inherited by a beneficiary or charity. This narration of the life cycle of an IRA helps investors ask the right questions and determine what type of IRA is right for them.
Maeda's book covers leaving an IRA in your will so that the proper beneficiaries will reap financial rewards should you die before its distribution. If you inherit an IRA, the book covers how to deal with that as well. Maeda's book covers a vast sea of topics with an alphabet soup of acronyms, and makes it easy for the IRA dummy to understand in a glossary terms, acronyms and sources. Whether you are a first-time investor or have an expansive stock portfolio, this book is for you.
Martha Maeda is an economic historian with special interest in micro-economics and in the effects of globalisation on the lives of people and businesses all over the world. She is also the author of; The Complete Guide to Investing in Bonds and Bond Funds: How to Earn High Rates of Return Safely (which is a great resource for anyone interested in bonds and investing in them). In this book she sets out to inform a new investor on what IRAs are, how IRAs work and also how to invest in them. This book certainly accomplished her intentions. The book has about 362 pages and has 4 sections. There are "Tips" which offer important information on a wide variety of topics.
If you are totally new to IRAs then may I suggest you start from Section 1 which deals with what IRA means, the history of IRA and how IRAs work? The book is simple to read, the language is clear and easy to understand. If you have some experience in IRAs then, you may want to skip this section. After reading this book, you will be adequately informed on IRAs to decide if you want to handle your own IRA investment or employ someone to do it for you.
I enjoyed reading this book and recommend it for this reason; while most books on IRAs tend to confuse and sometimes overwhelm readers, this book makes you want to take a new look at IRAs and how they work. You will learn how making early withdrawals from your IRA for other purposes may sabotage your retirement. You will also learn that in 2010 only, the income limits will be phased out entirely and anyone will be to contribute to a Roth IRA.
The recent economic downturn caused so many people to lose their investments, homes and retirement savings due to a lack of information.
This may have been prevented if more people had the right kind of information and made the right kind choices. I honestly believe that this book will provide answers to many unanswered questions readers may have.
I rate this book as a 4 star.
Overview
As more and more baby boomers prepare to retire and as people seem to be retiring at an earlier age, the importance of saving for retirement has become increasingly apparent. Many people find themselves worrying that they will not be able to maintain their current life style once they retire. However, the strategies provided in this book will help you turn your IRA into a wealth-building tool.
The Complete Guide to IRAs and IRA Investing will show you how to take control ...