PRINCIPAL FINANCIAL

THIS LIFESTAGES MINUTE IS BROUGHT TO YOU BY PRINCIPAL FINANCIAL.

TIPTOEING TOWARD RETIREMENT? IT’S TIME TO KICK YOUR SAVINGS INTO HIGH GEAR. MANY BABY BOOMERS ARE WAKING UP TO THE FACT THEY’RE UNDERFUNDED FOR THEIR GOLDEN YEARS. SO MAKE SURE YOU MAX OUT ON YOUR 401(K) TO GET THE FULL TAX AND SAVINGS BENEFIT OF YOUR COMPANY’S MATCHING FUNDS. THEN, IF YOU’RE OVER 50, TAKE ADVANTAGE OF THE CATCHUP RULES THAT LET YOU SOCK AWAY THOUSANDS OF DOLLARS MORE IN YOUR 401(K) AND I-R-A EACH YEAR.

NOW THIS FROM PRINCIPAL FINANCIAL.
(SPOT)

---

THIS LIFESTAGES MINUTE IS BROUGHT TO YOU BY PRINCIPAL FINANCIAL.

ONCE YOU RETIRE, YOU WANT TO ENJOY SPENDING THE MONEY YOU’VE SAVED WITHOUT WORRYING THAT YOU’LL RUN THROUGH IT TOO QUICKLY. SO IT’S PROBABLY BEST TO ROLL OVER YOUR 401(K) INTO AN I-R-A. WITH A REGULAR I-R-A,YOU’RE TAXED ONLY ON WHAT YOU TAKE OUT EACH YEAR WHILE THE REST KEEPS GROWING TAX-DEFERRED. WITH A ROTH, WITHDRAWALS AFTER AGE 59 AND-A-HALF ARE TAX-FREE, AS LONG AS YOU’VE HAD IT AT LEAST FIVE YEARS. STILL, CHECK WITH AN EXPERT TO SEE WHICH STRATEGY IS BEST FOR YOU.

NOW THIS FROM PRINCIPAL FINANCIAL.
(SPOT)

© 2010 Patrick J. O’Neill