Ask Rande 10,000+
- Rande
- mdorsey
- Indexer
- Rande
- Bdavidson
- bob90245
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- bob90245
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» Rande - Re: IRA catch-up rules
In response to message posted by mdorsey:
md,
Here you go:
Traditional IRA Contribution Limits
Prior Law: An individual can contribute up to $2,000 to an IRA. The contribution can be deducted if neither the individual nor spouse actively participates in an employer-sponsored retirement plan. If one spouse is an active participant in an employer-sponsored retirement plan, but the other spouse is not, the $2,000 deduction is phased out for the non-active participant if the couple's adjusted gross income (AGI) is between $150,000 and $160,000. Active plan participants are covered by a separate phase-out rule.
New Law: Under the Act, the general deduction structure remains the same, but some of the limits are changed.
Contribution limits: The maximum annual dollar contribution limit (whether deductible or nondeductible) increases to $3,000 in 2002-2004, $4,000 in 2005-2007, and $5,000 for 2008. The limit will be indexed (increased with the rate of inflation) in $500 increments starting in 2009.
Phase out. The earlier income phase-out range for an individual who is not an active participant, but whose spouse is, remains $150,000 to $160,000.
"Catch-up" contributions: An individual who is at least age 50 by the end of the taxable year can contribute up to an additional amount as follows:
$500 in 2002-2005
$1,000 in 2006 and later
-- posted by Rande
» Indexer - Capital Gains and Losses on Gold Coins
Hi Rande,About 14 years ago, for reasons that escape me now, I purchased a number of gold coins, both bullion coins and proof coins, that have done nothing but decline in value since I bought them. Can I now sell them and claim a capital loss to use to offset capital gains in stocks? Do I use the same IRS schedule if this is so?
Thanks, Indexer.
-- posted by Indexer
» Bdavidson - Home Equity Loans
Rande,I'd like to get your recommendation for a good website to search out the best rates for home equity loans. Any suggestions? I don't know how long it will take for the Fed's latest rate cut to filter down to the lending institutions, but the sooner the better. I'd like to pay off an 8% APR home equity loan from last year and apply for some additional funds for other pursuits.
Good to see you!
brad
-- posted by Bdavidson
» bob90245 - Personal Investment Policy
In response to message posted by Rande:Rande writes:
“The key, as always, is diversification within an appropriate asset allocation. The portfolio decision is always a personal one and should be based on specific circumstances -- individual goals and objectives, current and future purpose for the portfolio, cash flow needs, time horizon, risk preferences, etc. I do believe there is a suitable asset allocation for any individual that, given a long enough time horizon, patience and discipline, will provide the best chance of meeting individual needs, goals and objectives. That's going to vary from person to person, of course, since there is no one-size-fits-all. The goal in any situation, however, should be a personal investment policy...
I’ve read the works of Charles Ellis. He says similar things. But I'm genuinely interested in going about how to follow your advice. Does one need to consult a financial planner? Or are there resources out there for the do-it-yourselfer? I'm asking not only for myself (I'm 40), but for my parents who are about to retire.
-Bob-
-- posted by bob90245
» Rande - Re: Personal Investment Policy
In response to message posted by bob90245:
Bob,
If there are sufficient assets to warrant, it might make sense to consider using a planner, at least at the outset to help form the initial plan which you can subsequently take over. Key are independence and objectivity, finding a planner that is not out to sell product and is willing to work on a fee-only basis. Easier said than done these days. Some of the fund families, such as Vanguard, offer financial planning services for a fee depending on how much you have invested there. My own preference (surprise) is for an independent CPA with specialized training in personal financial planning (CFP, PFS, and or CFA credentials in addition to the CPA certificate). You might want to check with your state CPA society or the AICPA to see if there are any CPA personal financial planning experts in your area.
The planning process should begin and end with your individual goals and objectives, taking into account time horizon, risk preferences, etc. This usually means getting a handle not just on where your personal balance sheet is now vs. where you want it to be in the future, but a thorough understanding of your personal cash flows (income and expenses) as well. Typically, it all revolves around the cash flow needs, or what sort of lifestyle you want to support. Next step is designing an investment policy and asset allocation designed to have the best chance of meeting your goals. LAST, comes implementation, which should focus not just on potential performance but also on low expenses and tax efficiency. After that, it's a matter of updating your situation on a periodic basis to see if your goals are being met, rebalance the portfolio as necessary, measure performance, etc.
Good luck!
-- posted by Rande
» Rande - Re: Capital Gains and Losses on Gold Coins
In response to message posted by Indexer:Indexer,
You can claim a capital loss on the sale of any capital asset, including gold held for investment purposes, so long as you can substantiate the purchase date, cost basis, sale date, and proceeds with proper documentation. Actually, you could claim a capital loss even without any of that stuff, but it might be awkward in the event of an examination of the return by the tax authorities. 
-- posted by Rande
» bob90245 - Re: Re: Personal Investment Policy
In response to message posted by Rande:Rande writes:
"Typically, it all revolves around the cash flow needs, or what sort of lifestyle you want to support. Next step is designing an investment policy and asset allocation designed to have the best chance of meeting your goals. LAST, comes implementation, which should focus not just on potential performance but also on low expenses and tax efficiency."
Steps one and three above seem easy enough for a do-it-yourselfer. Would I need an expert to design an investment policy and asset allocation? If I wanted to learn this on my own, are there resources you can point me to?
Thanks,
Bob
-- posted by bob90245
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