Do you have kids? Do you have plans for your kids to go to college one day? Have you looked at how much college is going to cost you for just one kid? College is a big investment, but it is a good one. If you begin planning for this huge expense when your kids are young, you won't take much of a hit when the day comes that your teen packs his or her bags and heads off to start a new life at school. This blog will provide you with several ideas and tips that can help you find ways to plan for your kids' college tuition.
If you own your own farm, you are considered self-employed. This means you will have to take care of your retirement funds on your own. One way to do this is through an IRA. There are different types, however, and it may be confusing when you start researching it. Below are five different types you will find to help you make the best-informed decision on what is best for you and your family.
IRA
To put money back, you can get an IRA through your bank or other financial institution. An IRA lets you save money for your retirement that is either tax-free or tax deferred.
Traditional IRA
This type of individual retirement account (IRA) is an account that you deposit money into that is either after-tax or pre-tax money. Your money will grow tax-deferred, and when you start making withdrawals when you retire, the money is treated as your current income.
Roth IRA
With a ROTH IRA, the money you put into your account has already been taxed, and this money may grow in the account as tax-free. The money you take out when you retire may also be tax-free. See an accountant to see if you qualify for this.
Rollover IRA
If you currently have a retirement account through an employer, you can roll it over into your personal IRA account if you choose this type of IRA account. You will not have to pay taxes on this money until you start taking it out of your account.
Self Directed IRA
A self directed IRA gives you much more control in the way you fund it. You will hire a custodial to hold money in your account, and then you take control over all investments that are made, such as a mortgage and real estate. If you choose this type of IRA, it is very important that you understand how everything works. For example, if you use a real estate investment, make sure it is really worth what you say it is, as the IRS will check this.
Simplified Employee Pension
The simplified employee pension (SEP) works well for farmers if you do not have employees. This type of IRA is popular among those that are self-employed. This is because you do not have to deposit money throughout the year, and you can wait until you file your taxes. This works well because as a self-employed person, your income likely fluctuates, and you do not know how much money you will make per year. The money you put into your account is tax-deductible and tax-free.
Talk with the investment firm or an accountant about these IRAs, as they can give you even more detailed information about them. He or she can also give you all of the tax implications and rules and regulations.
Share14 April 2015
