The Fixed Amortization Method

January 22, 2013

There are three ways that an early retiree can access his retirement funds without incurring a penalty before the age of 50 ½. These are the Fixed Amortization Method, the Fixed Annuitization Method and the Required Minimum Distribution Method. Each is unique and has specific conditions and consequences. The fixed amortization method amortizes the account […]

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What is the Federal Employee Retirement System (FERS)?

January 19, 2013

A tri-part plan that provides civilian employees of the Federal government retirement benefits, the Federal Employee Retirement System (FERS) consists of a core Basic Benefits Plan, a Thrift Savings Plan and Social Security benefits. Enacted by Congress in 1986 the Federal Employee Retirement System went into effect in 1987 and was intended to replace the […]

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The Advantage of an Extended (Stretch) IRA

January 15, 2013

An Extended IRA is an IRA that maximizes the period of tax deferral even into the next generation. It allows a second generation beneficiary to continue distribution of assets over their own life expectancy, not just that of the original owner. This means that if the first generation beneficiary dies, their designated beneficiary becomes the […]

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What is the Excess Accumulation Penalty?

January 12, 2013

Retirement plans usually contain stipulations regarding how long an individual has before they must distribute their funds. The required minimum distribution is the amount which must be distributed annually. Only a partial distribution may be required within a certain period. If, however, the beneficiary fails to withdraw or distribute the minimum amount due during a […]

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How the Employee Stock Purchase Plan -ESPP – Works for You

January 7, 2013

One of the potentially most profitable options for an employee is the employee stock purchase plan or ESPP. An employee stock purchase plan allows a company to offer its employees stock at a discounted price. The discount can be up to 15% of the market price when the offer is made. Contributions are made from […]

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Wise to Invest with Vanguard Brokerage Services?

Even with clever marketing and an attempt to turn their name into a verb, does Vanguard have what it takes to be a successful online broker? As a long standing player in the investment biz, Vanguard should have been poised to do well online. Here is what we found out. Application Process The details of […]