So if you’re not covered at work, your first step should be to find out if you’re eligible for a group plan through a trade or professional association. Group coverage is less costly than an individual policy.
This reimburses you for your hotel and restaurant bills and other living expenses if you’re forced out of your home by an uninsured event, such as a fire. Whether you own or rent, make sure your policy includes adequate “loss of use” coverage. But that’s probably a small fraction of what it would cost you to replace it with a new couch. For example, if you sold your living room couch, you’d get its actual cash value. If you’re a renter, your policy should cover your possessions for their replacement value, not their “actual cash value.” The two sound alike, but their meaning is very different. That’s its replacement value, which isn’t the same as its market value. If you’re a home owner, your policy should cover the cost of rebuilding your house if it burns down. You’ll find more information on both types of IRAs here. Roth IRA contributions are never tax-deductible, but your withdrawals will be tax-free after you’re age 59-1/2 and have owned the Roth IRA for at least five years. Your traditional IRA contributions may be tax-deductible, depending on your income and on whether you (or your spouse) are covered by a retirement plan at work. The maximum 2010 contribution you can make to either one (or to both together) is $5,000 $6,000 if you’re age 50 or older. Federal law limits the dollar amount of your contributions. Every plan has its own rules on what percentage of your salary you’re allowed to save each year. You owe no taxes on your contributions or on their earnings until you withdraw them.
The most common plans are the 401(k), the 403(b), which is used by nonprofit organizations like churches, schools and hospitals, and the 457, used by governments and municipalities. Your company may also match your contribution-or part of it. If you have access to an employer-sponsored retirement account, it should be your first choice for your savings. Your emergency account should be big enough to cover at least six months of living expenses. Your priority for this money is safety! It belongs in a bank account or a money market fund, not in the stock market.
This is money you’ll need if you’re laid off from work or confronted with unexpected home repair or medical bills. If you don’t want to hire a lawyer to write your will, Quicken WillMaker can help you create the legal documents you need to protect your family and assets. But if they’re minors, their share is administered by a court-appointed attorney until they turn 18 or 21, depending on when your state’s law says they’re adults. In many states, for example, your surviving husband or wife would get only one-third to one-half of the assets that were in your name alone. This can create problems for your survivors. If you don’t have a will, state law decides who gets your estate, and it can often take years for it all to wind its way through the legal system. This is where you name a guardian for your children and direct how your assets should be distributed when you die. Here’s a breadwinner’s checklist of seven financial essentials: 1. There are also financial planning staples every family needs. There are essential items you probably put on your grocery list every week-including bread, eggs and paper towels.
0 kommentar(er)
