Pay Less Tax Post-Retirement With a Roth IRA

The primary differences between Roth IRA accounts and traditional IRA plans are (1) when tax is due on the money invested and (2) taxation applicable to the interest earned on the funds. Traditional IRA accounts are tax-deferred investments, and Roth IRAs are not. 

With a traditional IRA, you can deposit pre-tax money into the account, meaning that instead of paying income tax on the money now, income tax becomes payable only at the time you withdraw funds from the account. These funds are taxed as ordinary income rather than as capital gains. With a Roth IRA, the money you invest goes into the account post-tax. That means that you are investing post-tax money rather than pre-tax money with a Roth account.

With a traditional IRA, all of the interest earned on the account during the years the money is invested is taxed as capital gains as the investor withdraws funds for retirement income. The Roth IRA is tax-exempt investment. With a Roth IRA, however, there are no taxes on the gains for the investor or his or her beneficiaries. This benefit of the Roth IRA accounts can result in a significant benefit in terms of cash flow during the retirement years.

Roth IRAs are not subject to the minimum required distribution rule that applies to traditional IRA accounts. It’s possible for retirees to allow their Roth accounts to continue accruing tax-free interest for as long as they wish.

Roth IRAs are also a good investment for individuals who are thinking about retiring early. It is much easier to withdraw money before reaching the age of 59 1/2 with a Roth account than with a traditional IRA.

As an added advantage to retirees, interest earned on a Roth IRA is not used in the calculation that determines whether or not social security benefits are taxable. Investors who wish to reduce their tax bills post-retirement, rather than enjoying the benefits of a tax-deferred investment today, should definitely consider investing in a Roth IRA.

Expert Retirement Planning

Retirement Planning Know-How from the Experts.

 
Is a Full Time RV Retirement Lifestyle Right for You?

If you dream of spending your retirement years traveling around the country at your leisure, a full time RV lifestyle might be perfect for you. For a growing number of retirees, full time RVing is a dream come true.

Many retirees sell their homes and invest a large portion of the proceeds in high-end recreational vehicles that allow them to see the world while traveling in comfort and style. Others maintain a home base, but spend most of their time on the road.

One of the primary benefits of a full time RV lifestyle for retirees is the flexibility. When your primary home is a recreational vehicle, your home literally is where your heart is. If you end up traveling to a location you don't particularly like, you can just leave and go somewhere else.

You can travel to warmer climates for the summer months and cooler climates for the winter months. Many northern retirees, referred to as snowbirds, flock to the warm climate of Florida every year during the winter. Many native southerners escape the heat of the summer by traveling to the Great Smoky Mountains or the Rocky Mountains to enjoy the cool air in high elevations.

Those who have friends and family spread out all over the place can plan their RV routes so they get to see loved ones on a regular basis. They never have to worry about imposing as houseguests, because they literally bring their homes with them when they visit.

Some full time RV retirees map out travel routes that allow them to play major golf courses from coast to coast. Others utilize their homes on wheels to attend home and away college and professional football games, no matter where they are held. Some full time RVers even travel the NASCAR circuit during racing season.

If you're looking forward to extensive travel during your retirement years, you just might want to consider a full time RV lifestyle. Even if you want to hang on to your home, you can certainly enjoy spending time on the road during your retirement years.



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Jaimie Hall- Bruzenak  - Is a Full Time RV Retirement Lifestyle Right for Y   |213.157.176.xxx |2008-07-08 14:02:10
As you pointed out, there are so many ways to live the RV lifestyle. It can be
less costly to live full-time on the road in an RV so can be a good option for
retirees. And, there are plenty of jobs and volunteer opportunities for RVers.
They can add to your income or certainly help you save money. Many jobs and most
volunteer positions come with an RV site, reducing your housing expenses and
probably lowering your fuel bill since you will be in one location for a while.
It’s a great way to make a difference and really get to see an area in depth.
Jaimie Hall - Bruzenak
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Alison Michel  - Is a Full Time RV Retirement Lifestyle Right for Y   |213.157.176.xxx |2008-07-08 14:02:57
For an interesting and informative program on life on the road in an RV, check
out “The Art of Living: RV Style” on Retirement Living TV.

Visit www.RL.tv
to find air dates and channels …
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