Ahh, summertime: The time of vacations, getting away, seeing family or friends, and relaxation. But not being home can sometimes be a problem, too. Whether it is an opportunity for thieves or a burst water heater, being away from home means you’re not there to keep an eye on things. Here are some tips to protect your home or apartment while you’re away.
However, if one is under age 59 ½, and they are taking distributions from their own IRA, they could be subject to the IRS 10% penalty rule. By leaving the account in the deceased name, the 10% penalty is waived if you need to access this money early.
We have several observations. With housing we think that prices will stop rising and possibly fall in some markets. Homebuyers will also be forced to rent or live with family members for much longer than before. This may allow them to save up enough for a large down payment that keeps their monthly mortgage payment low or at least within their budget.
Social Security is not based on one’s highest three years of salary like some pensions but rather Social Security looks at the last 35 years of earnings and does a calculation based on that. If you worked less than 35 years, they credit you with zero earnings until they get to 35 years.
Some of you know that my son, Kendall, graduated from Natick High School on June 3rd. He’s our #3 child by birth order but each one is, of course, special to us in their own way.
So, why use the Roth 401k option? Well, there is no tax benefit today BUT it allows this money to grow tax free (assuming certain rules are met) and there are no Required Minimum Distributions to worry about (See Rick’s Tip #1). You can leave this money in as long as you live. And, if you are married, you can leave this account to your spouse, and they can leave the money in to continue to grow over their life.