25 October 2009
IRA Converion
29/10/09 14:11 Filed in: All thing Money
Individual Retirement Accounts (IRA) are one of the most powerful tools in your arsenal for building wealth. They allow you to build wealth either tax-deferred (Traditional IRA) or tax-free (Roth IRA). The tax deferred option allows you to make contributions and invest on a “pre-tax” basis and pay taxes only on any money you withdraw. The tax-free option allows you to make contributions and invest on an “after-tax” basis and pay no taxes on any money you withdraw.
Neither one of these solutions is the right answer for everyone. The right answer depends on a variety of factors including your current effective tax bracket and your future effective tax bracket. What I like to ask is, “Right now I have mortgage interest deductions, dependent deductions, and business deductions, so my effective tax bracket is quite low. When I’m retired my mortgage interest deduction will be low if any, my non-deductible kids had better be moved out, and I’ll be retired so I won’t have any business deductions. Do I think my effective tax bracket in retirement will be lower or higher than it is now?” If I think it will be lower then I’d fund a Traditional IRA. If I think it will be higher then I’d fund a Roth IRA.
If you think that you would be better off with a Roth IRA and have a Traditional IRA in 2010 you have an opportunity to move money from your Traditional IRA to a Roth IRA. Normally there are very rigid rules that govern IRAs.
In 2010 you may convert your Traditional IRA into a Roth IRA regardless of your household income. You will have to pay taxes on this converted money, but that will be the last time you ever pay taxes on that money again.
For more information call or contact KLG.
Neither one of these solutions is the right answer for everyone. The right answer depends on a variety of factors including your current effective tax bracket and your future effective tax bracket. What I like to ask is, “Right now I have mortgage interest deductions, dependent deductions, and business deductions, so my effective tax bracket is quite low. When I’m retired my mortgage interest deduction will be low if any, my non-deductible kids had better be moved out, and I’ll be retired so I won’t have any business deductions. Do I think my effective tax bracket in retirement will be lower or higher than it is now?” If I think it will be lower then I’d fund a Traditional IRA. If I think it will be higher then I’d fund a Roth IRA.
If you think that you would be better off with a Roth IRA and have a Traditional IRA in 2010 you have an opportunity to move money from your Traditional IRA to a Roth IRA. Normally there are very rigid rules that govern IRAs.
In 2010 you may convert your Traditional IRA into a Roth IRA regardless of your household income. You will have to pay taxes on this converted money, but that will be the last time you ever pay taxes on that money again.
For more information call or contact KLG.
Mission vs. Vision
29/10/09 14:08 Filed in: Best Business Practices
"I would like to discuss two very important components of business and your business model. Mission and Vision statements. I will discuss this over the course of two weeks, so consider this a two part message.
Most importantly I would like to discuss the differences between a company's Mission and a company's vision. I hear so many people ask me "what's the difference?", and "Aren't they the same?". No they are not same! In fact they are quite different. An organization's Mission speaks to what it wants to accomplish for its customers. For example, "XYZ, Inc. Seeks to provide its clients the highest level of quality and customer service, thus proving to be the best provider in the industry". So when you are talking about Mission remember that you should be discussing how the character and integrity of the company can effect the customer in a positive way, thus creating more credibility for you and your organization within your industry. A mission can be a powerful tool. It can act as a guideline as to your expectations on how every customer should be treated. It can direct sales people with a common marketing message. It can act as a philosophy to help you achieve real goals set for the company. How ever you chose to use your mission make sure it is positive, and that it strengthens your relationships with your customer base.
Next we will discuss vision...................to be continued next week!"
Most importantly I would like to discuss the differences between a company's Mission and a company's vision. I hear so many people ask me "what's the difference?", and "Aren't they the same?". No they are not same! In fact they are quite different. An organization's Mission speaks to what it wants to accomplish for its customers. For example, "XYZ, Inc. Seeks to provide its clients the highest level of quality and customer service, thus proving to be the best provider in the industry". So when you are talking about Mission remember that you should be discussing how the character and integrity of the company can effect the customer in a positive way, thus creating more credibility for you and your organization within your industry. A mission can be a powerful tool. It can act as a guideline as to your expectations on how every customer should be treated. It can direct sales people with a common marketing message. It can act as a philosophy to help you achieve real goals set for the company. How ever you chose to use your mission make sure it is positive, and that it strengthens your relationships with your customer base.
Next we will discuss vision...................to be continued next week!"