Tag Archives: individual

Are Your Durable Powers of Attorney in Place?

Sometimes an individual wants to empower another person to act on his or her behalf in a legally binding manner. There are various different reasons why this dynamic may be in place, and the situation can be addressed through the creation of a legally binding document called a power of attorney. To provide a simple overview, the person who is granting this power to another is called the principal or the grantor. The individual who is going to be empowered to make decisions on behalf of the grantor is called the agent or attorney-in-fact. Don t be thrown by the term attorney-in-fact. The person who is going to act as the grantor s representative does not have to be a lawyer. Any adult of sound mind who is willing to act as the agent can do so. There are different types of powers of attorney. A general power of attorney could be used to give the agent broad latitude. The agent would have sweeping power to enter into most types of legally binding agreements on behalf of grantor. This is

Do I Have to Withdraw Money From My IRA?

You contribute into an individual retirement account to set aside resources for your senior years. The contributions may accumulate over decades, and each step of the way, you really don t know where you will stand when you attain senior citizen status. If you are successful financially, when you decide that it is time to retire, you may come to the realization that you will never need the assets that you have in your IRA. At this point, you may wonder about the estate planning implications. Let s look at some of the facts. Traditional Individual Retirement Accounts Whether or not you are required to withdraw money from your IRA will depend upon the nature of the account. If you have a traditional individual retirement account, you made the contributions into the account with pretax earnings. The government wants to be able to get some money eventually, so any withdrawals that you take are subject to regular income taxes. However, there can be a benefit here, because your taxable inco

How Do Individual Retirement Accounts Work?

When you are planning ahead for the future, you should account for every phase of your life. You want to make sure that you are financially comfortable during your active retirement years, and you should also consider the twilight years that will follow. Ideally, you will have a suitable financial legacy to leave behind to your loved ones after you pass away. Retirement can be partially funded by an individual retirement account. There are two different types of individual retirement accounts that are widely utilized: traditional individual retirement accounts, and Roth IRAs. Let s look at the differences between these two accounts. Traditional IRAs When you have a traditional individual retirement account, the contributions are made before you pay taxes on the income. As a result, you are saving money while you are lowering your taxable income, so there is a dual positive. You cannot make penalty-free withdrawals from the account until you are 59.5 years old. It would be possible to