from FREEDMAN FINANCIAL | December 4, 2015

Time to Take Your RMD

If you're over 70 1/2, December 31st will be here soon and that means it's time to take your Required Minimum Distribution (RMD).

Saving for retirement has its tax advantage, but at some point Uncle Sam wants to get paid and that happens when you turn 70 1/2. At that age, seniors are required to take a minimum distributions from their IRAs and other tax deferred accounts. Ignoring this deadline can be very expensive. The penalty is 50% on the difference between the amount you withdrew and what you should have withdrawn from your accounts.

If for no other reason than to avoid an IRS tax penalty, you should consider consolidating all of your retirement accounts. If all your accounts are in one place you will be able to calculate your RMD with ease. By having accounts in various locations you run the risk of not taking the minimums required by the IRS. After all, the IRS receives reporting on all these tax-deferred accounts and they are waiting to collect their money!

Make the Most of Your RMD

What You Need to Know About Your 401(k)

401(k)s have many advantages but you need to know the downside to your accounts.

401(k)s are the favored variety of retirement savings plans for many Americans because of the tax advantages, the simplicity of an automatic payroll withdrawal and company matches on contributions. It's easy to see why so many Americans have 401(k) plans - but not all plans are created equal.

You need to take a look at the specifics of your company's plan and consider the fees. In many instances these fees are covered by your employer, but often they are passed on to the participants and the smaller the company often the larger the fees. Your selection of investments option is often minimal. On average you'll have just nineteen fund choices, which is far less than would be available in an IRA.

The Dark Side of 401(k)s

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De-clutter Your Digital Life

Creating a better flow of energy in your home, can improve your relationships, stress level & maybe even increase your cash flow!

With most Americans spending more time than ever in front of electronic devices, it is important to de-clutter your digital lives. On average we spend eleven hours a day in front of the TV, computer, listening to the radio and on our smartphones. The idea of creating a better energy flow is a not a new one; the principle of feng shui has been practiced for hundreds of years on homes. With so much of our days "connected", take twenty minutes or so to de-clutter and organize. It might be just the way to start 2016 off right!

Take 20 Minutes to Tidy Up Your Digital Life

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