The 5-Year Roth IRA Rule

The Consulate Journal

The 5-Year Roth IRA Rule

Most people know that Roth individual retirement accounts (IRAs) have a “5-year rule,” that is, you must have owned your Roth IRA for at least 5 years and be over the age of 59.5 years to withdraw earnings tax-free during retirement; however, very few seem to truly understand the details surrounding this rule. It is…

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A Voters Must Read to Tax History

There is an old saying that is worth remembering when it comes to income taxes: “Those who cannot learn from history are doomed to repeat it.” As increasingly more politicians demand that the rich pay their “fair share,” it would be wise for the less affluent to hold onto their wallets tightly. History teaches us…

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Inertia: The Number 1 Enemy to Sound Investing

To an investor, the main obstacles to wise investing are greed and fear. How often do people buy stock simply because they think that they are going to make a significant amount of money? Greed can make the most rational of investors act foolishly. On the other side of the coin, panic often increases with market volatility.…

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The Elements of Estate Planning Most Missed

Many equate estate planning with creating a will. So, when you finally get around to writing your will– a task most of us prefer avoiding rather than addressing, you feel satisfied that you took care of everything. Unfortunately, though, you are far from finished with estate planning when you complete your will. Two essential elements…

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To Extend or Not to Extend?

It seems every year most people want to have their taxes filed by April 15th, and nobody wants to file an automatic, no questions asked extension till October 15th. It seems to us as many feel they are doing something wrong if they do not file by April 15th. Many believe if you extend your…

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Investment Risk Management

It is one thing to understand the universe of investing, but it is another thing to know how to work with it. The universe of investing tells us that any investment that yields more than the safe rate of return comes with risk. Risk can be defined in many ways, but for this article, we will identify…

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Working Beyond the Age of 70

There are many benefits to working beyond the age of 70, the greatest of which is that those who work later in life—and enjoy what they do—often experience good health. If, however, a person does not enjoy the work that they do, or simply does not wish to work past 70, then a path to…

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Riding Out the Market by Understanding Your Stocks

If you automatically calculate how much money you “lose” when the stock market goes down, then you may require a psychological reset if you plan to remain invested in the market. Let’s assume that you bought a house for $300,000 on January 15. On July 1, a man who you’ve never met before approaches you…

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Is It the Chicken or the Egg?

Which came first, the chicken or the egg? This age-old question can be adapted to many questions on origin, including financial planning. Financial planning’s “chicken and egg” question is: Is it about saving or spending less that brings forth financial accumulation? The answer is spending. You cannot save unless you choose to spend less. A…

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Home Equity Credit Line: An Invaluable Tool

For many years now, I have been promoting one of the greatest and most invaluable (but underappreciated) financial planning tools—the home equity credit line (HECL). An HECL is an agreed-upon balance that you can borrow from at your own choosing on a portion of your home’s equity. If you borrow against the credit line, then you…

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