Didn't think the IRS was flexible? Turns out that you have until October 15, 2010 to make a SEP-IRA contribution. A SEP-IRA is one of several self-employment retirement plans.? With relatively high contribution limits and flexible contribution requirements, it's one of the best options for the self-employed showing income. Don't procrastinate too much longer, however, as you now have less than a month to go!
Wednesday, November 3, 2010
2010 SEP-IRA Contributions Nearly Due
Tuesday, November 2, 2010
Can you take a Roth IRA withdrawal before you retire?
One can always take money out of his Roth IRA.? In fact, it's the only retirement plan an individual can tap prior to retirement without facing any penalties or taxes. (You typically can't get your entire balance with no payments due - only your contributions to date.)
Still, any significant distribution from a Roth IRA prior to retirement introduces some complexity. Fortunately, issues like the five year rule, qualified Roth IRA distributions, and the tax treatment of non-qualified distributions are all simplified for you. Want to learn more? ?A great place to start is Can I withdraw money from my Roth IRA before I retire?
Golden Girls
by Jorja
(San Jose, Ca)
I just turned 60 in July and can't believe how hard it's been.
I'm healthy, in a good marriage, OK job, love my sisters, crazy about my kids and grandkids... but still having tons of thoughts of life... what I've missed, what I still want, etc.
I tell my kids to enjoy their youth, beauty, kids etc because life goes by way to quickly. I have a friend who has been diagnosed with cancer so I have nothing to complain about compared what she is going through and try to keep it in perspective... yet, the past keeps coming back flooded with emotions....
Monday, November 1, 2010
Had to retire due to health, but sure didn't want to
by EJ
(Phoenix, AZ USA)
I don't play golf, I have no hobbies and I loved my job working with homeless veterans. Now because of serious hearing problems I was put in a position of retiring at the ripe old age of 68. I had hoped to work into my 70's but it wasn't to be.
To make matters worst, my wife is still working f/t and has 4 more years before retirement.
I'm in such a state of depression even though there are things that I should do and things that need to be done but I just don't feel like doing them nor do I have the energy. I have been on Celexa for several years and it has helped but with this new round of depression the doctor increase my dosage from 20mg to 40mg but the problem intensified since I suffered some serious side effects.
I am in such a funk I don't do anything but lay around all day. I sure could use some help.
Dear EJ: I would LOVE some help with Veterans on this website. I wonder if you'd write about different services they can use.. help them via the internet! If you are interested, Please write to me via the Contact Wendy (to the left).
Will keep you in my prayers! You need to volunteer your Veteran experience somewhere.. in your community, or online (in a personal "veteran" blog or here on my website!)
Retired and Moved from NY City to Key West, FL
by Gary
(KeyWest, FL)
I never would have imagined spending my retirement years living in Key West, Florida, the laid-back Southernmost City in the Continental United States.
Friends with a second home here invited me to visit them for a week in January, a welcome relief from the Northeast?s brutal winter. Sitting by their pool, under the shade of a bougainvillea bush aflame with fuchsia blossoms, I was hooked.
The thought of returning to the winter was so upsetting that I rented a cottage nearby and stayed for several more weeks.
I had no responsibilities at home, being divorced, no children, so before the next winter came, I arranged to rent a small apartment in Key West for two winter months.
The next year I rented a condo for three winter months. By the end of the third visit, I knew I loved the funky little island city where it was easy to make new friends, safe to walk the streets, with an amazing arts community, breathtaking flora and fauna and lovely weather.
Okay, so it?s in the storm path for half the year, but the hardy locals are willing and able to help newcomers with advice and labor. With proper preparation, and a little luck, I put that negative on the bottom of my list of why not to move.
But first I wanted to spend a tropical summer, so I did. It was humid, sure, and hot, but the famous trade winds always blew a soft breeze around, which made it bearable.
I sold my Northern home and bought a duplex in Key West that I could afford, not easy in an expensive tourist town, but the rental apartment helps pay the mortgage.
Retired: Arizona Snowbirds
by Tony P
(Scottsdale Arizona)
We have been doing this since 2008 when the cold winters and storms near our place became too much for us.
As Point Roberts is very isolated, we were nervous spending all winter there as if we needed help and it wasn?t nearby.
We originally rented a place in Prescott, AZ for the first year as we had friend of our living there, however we decided that it wasn?t the place for us. It was very out of the way and hard to get to, as well as I felt it was too small for our liking.
While it was nice to get away to a small place we missed to city and city activities. We have since bought a condo in Scottsdale and enjoy it very much there.
We choose Scottsdale because we wanted a more big city feel.
We enjoy the arts and culture and Scottsdale has a variety of museums and cultural festivals that we can enjoy.
It is also a nice place for our family to visit us in the winter as there are plenty of activities for the grandchildren to enjoy.
We decided on Az as our winter place because we have many friends who have a place there and recommended it highly.
We felt Florida was too overrated and didn?t want to live in a retirement community, but simply have a place to stay in the winter.
Arizona has a wonderful climate and a great church community and we felt very welcomed there.
I recommend Scottsdale to anyone looking for a winter place!
Sunday, October 31, 2010
Does SBI include e-newsletters?
by Fern
(Creston, BC, Canada)
Wendy: SBI does it all... and I know darn well I'll sound like an SBI cheerleader here, but I can't help it.
The Action Guide (manual) teaches you all about websites... step by step, finding the right keywords, writing pages, getting readers, networking with other sites and your visitors, doing your e-newsletter.. and a whole lot more, including building an income.
Really -- this IS an e-business. I earn an income... so it's work after retirement, but it's also FUN FUN FUN (to me) and it's my extra retirement income too!
If you have any questions, just ask, or write to me personally using the "Contact Me" button to the left!
p.s. I started a new website today -- FUN FUN!
www.merry-christmas-guide.com
Can you take a 401(k) withdrawal before you retire?
Currently, withdrawals from 401(k) plans are very high. In a down economy such as the one most of us face today, the need for short-term money often trumps ideal long-term planning. Like with a regular IRA, you can get your money anytime from a 401(k) plan, since it is your money. (An exception to the general rule is matching contributions which have not yet vested.)
Prior to withdrawing money from your 401(k) plan however, understand the implications of an early withdrawal. Consider alternative funding sources.? If you're still employed, for example, contemplate a 401(k) loan.? Do you research, starting with the answer to the FAQ: Can I withdraw money from my 401(k) before I retire?
About Me: Durgesh Kumar Srivastava
In these blogs I write about my life experiences, mostly relating to my adolescent years (1950s) and my later years as a University college teacher at different places in India.
I write these blogs to fill the current vacuum in my life that has arisen since my triple bypass open heart surgery in mid August, 2010. I am now convalescing at home. The Internet is my window to the world.
Through these blogs you can have a first hand feel of the life and culture of India and its people. English is my second language. My first language is Hindi. Kindly do not mind the clumsiness of my writing, grammar and spellings.
I was born on 22 February 1943, at Allahabad in north central India. My early upbringing and education up to University Post Graduation was at Allahabad. I have had a very happy childhood. I now live in New Delhi, the capital city of India. I am married and my two sons are grown up and independently well settled. i have three grandsons - 15 13 and 7 years in age. i served as a University college Reader in Commerce and Management for 40+ years.
I have had a variety of interests in my life - Hindi movies, Hindi film music, nature, travel and sport. But now at age 67+ my interests are day-dreaming, making castles in the air, gossiping, sending and receiving long e-mails and generally talking of nothing in particular. I like wit and humour and kids. I love to tell stories of my life and to hear your stories. Whatever interests my e-pals interests me. Unfortunately, my wife of 44 years' vintage shares none of my interests. She lives in a world of her own under the same roof and i let her be, giving her space and all liberty.
You will know me and my nature if you go through the archives of our group websites and read some of my blogs. i will continue to post my blogs on the two websites and request you to peruse these when you have the time and mood and send to me your critical comments. One request - please write to me in large fonts when you e-mail me.
We here have just gone through a month of heavy rains. Extremes of weather are a common feature of life in this city. The weather is mild now in time for the season of many interesting Hindu festivals. The children are very happy. When the children are happy, I am very happy too.
i took out my 20 year old car for the first time in two months since my surgery. My grandson Chhota (7) sat next to me. in a one hour drive he asked something like 200 questions. i patiently answered most of them, many untruthfully just to please him. Chhota addresses me as BABA. All the children of the locality (even many young and beautiful maiden) address me as Baba. That is fine with me.
My views are quite different from the views of others. I do not consider children as intrusions. I welcome them on my lap. If you talk to me at the same time as Chhota, I shall give first priority to Chhota.Colleagues would often ask me what is the greatest joy in life. I would answer - parenting, and then add - grand-parenting is even better. That is why DENNIS THE MENACE is my favourite cartoon strip.
Please do e-mail me (in large fonts) when you are in the mood. Please write a long e-mail. i shall welcome it.
Regards, Sincerely,
(Mr.)Durgesh Kumar Srivastava)
Durgesh (my first name)(you can call me DK)
New Delhi, India, 30 Sept. 2010
Email: JiBhaiya@gmail.com
Saturday, October 30, 2010
Low Income Senior Apartment, <br>not so great...
not so great..." readability="114">
by Pam
(Mt. Clemens, MI)
The balcony crumbling
The rebar rust
More balcony crumbling at joint
Bathroom vent
Actually the apartment is cute at first viewing, one bedroom, living room/dining area combined. Really too small for living room and dining area but nice for LR. Small kitchen, but great for one person.
However the appliances leave something to be desired, the stove is a Caloric and 16 years old, parts broken, all scratched up on dial panel, timer and clock not working and they can't fix it, frig is just as old as stove. It has a huge balcony, goes end-to-end of the apartment. That is great!
Bathroom is good sized for a one-bedroom place. Shower, tub, the usual stuff in bathroom.
Things I noticed I did not care for: The sink/vanity has no drawers, or cupboard below it, so you have to get a shelf or small table for the bathroom. The carpeting, although it was new when I moved in, is indoor/outdoor carpet not pretty, but well-padded due to floors being cement. The walls between the apartments are concrete, so it is somewhat soundproof. Huge gap under the entry door to the apartment. All closet doors are metal, all the shelves in the closets are metal, and some are rusted at the hinges. There is a huge doorwall to the balcony, and one large window in the bedroom. They were not easy to open or close, so they told me just use some WD40 on them? Huh? I thought that was their job.
There is a small vent in the bathroom, that is so caked with stuff, dirt etc., that you cannot see the inside of it.
During a severe storm a few weeks ago, the ceiling in the living room leaked so badly I had to cover my computer with plastic, it leaked from the seam at the doorwall ceiling, and in the bedroom, it leaked from the middle of the room at the seam to the floor, and all over my bookshelf and books. The bedroom window tracks were clogged, because the water poured in under the windows to the floor.
Needless to say, I was not a happy camper. So, I reported it to the management team, and they sent the maintenance person to my apartment. She showed up with the cleaning lady, and they actually had the audacity to stand in my apartment and tell me that it leaked from the wind shears directions. That the force was so strong it caused leaks?? Huh? Concrete does not leak, or at least it is not supposed to.
So, I go out to the balcony, and the concrete is compromised, it is crumbling, and chunks missing, and rust stains down the sides of the white walls. Rust stains are from the re-bar rusting. Something is seriously wrong here. My move-in inspection was the whole front of the list and the entire back of it.
So far, to date (9/05/2010) they have only fixed one thing, I fixed two myself.
I could go on and on, but why? The reason I am writing this, so if you are looking for a place to live, look closely, check the ceilings, the doors, everything! You will be living there, if you are not happy with it or even a little bit hesitant, don't sign anything, keep looking. I wish I had!
So, in closing would I pick this place again, no. I would certainly look closer at the apartment before I said I wanted it, like for leak spots on ceilings, rust, etc. So, I am currently applying for residence at three other places I have seen, so by the time my year here is up I can move out.
The name, I am sorry to say is Park Place Towers in Mount Clemens. I would not recommend this place to anyone.
On a scale of 1-10, I rate it a low 1. On top of all of that, I have only been here 1 month!!
Wendy's Two Cents: Pam, Believe it or not, that is the same low income senior apartment that my father lived in, we loved that place! I wrote about it (but didn't name it) on my website here!
It sounds like it's falling into disrepair, he had no leaks, though I do remember the balcony was crumbling a little bit.
Dad died in December 2005, so its been five years since I've been there... I'm kinda not surprised as so many organizations just don't have the money to do things like they did a few years ago. It's a tough economy out there,....
You might try the Macomb County Senior Citizens Dept. Call to see if they can help, or scroll down the page and click on Senior Housing for a huge list of senior low income apartments!
Best Wishes!
Retired Teacher's Story
by Diane
(Wisconsin)
I loved teaching children, watching them grow, and generally being an active citizen of my community. It was upsetting, though, as I got closer to retirement age because I loved my job so much.
I really have never been one to have many hobbies so I was really feeling a great deal of anxiety because I didn't know what I would do without my job.
When I was preparing for retirement I was trying to come up with things to do during it. I was thinking of perhaps taking up gardening or something on that line. I had always wanted to learn to grow my own tomatoes and cucumbers and it would probably be an excellent time to take up the hobby. I thought so anyway.
Thankfully during the rest of my life I had never been much of a spender. I had a large safe full of money I had saved my whole life. I also had a very large retirement plan so financially I was very stable. I just had a lot of trouble getting use to the idea physiologically.
Last year was the big yeah for me - it was the year I finally retired. I sat around the house all day, not really doing anything. I would clean a lot. I think that at that time I became a bit obsessive compulsive over cleaning because I had nothing else to do.
Over time my family have helped me become a bit more comfortable with my retirement. I do miss being in my former workplace. I miss seeing the children's faces.
At the same time I still feel like I've had a very rewarding career and that I could probably use this time of rest.
Thankfully I am still able to see former students on a daily basis. I pass them by everyday in stores and other establishments.
I am very happy about my retirement even if sometimes I do get the blues.
Artsy Retiree makes Creative Greeting Cards
by Phyllis
(Middleburg, PA, USA)
Happy Sunflower Day
I make beautiful creative greeting cards using artwork I've obtained from the internet or magazines and my own special poetry.I match the poetry not only to the picture but also to the person I am creating the card for.
People that have received my cards think they are beautiful and have wonderful sentiments inside.
I can create any kind of card be it - birthday, thank you, illness and/or holiday cards. Each card is a work of art and each card is completely different from the next.
This is one of the ways I have used to feel alive during my retirement.
Forced Retirement at age 58
by Jan
(Houston,TX)
I was beginning to think of retiring in five years or so when, to my shock, I was not only forced to retire but treated very badly by my employers of eight years... after being considered the best in my field for many years.
I have been prone to anxiety /depression for many years but otherwise have good health. This saga began in May 2010 and I have had many ups and downs.
The anxiety is currently on the increase. I have tried many meds and therapy with little positive effect in the past so I have minimal confidence in these avenues.
I did not have the luxury of planning a retirement and as a public school employee have limited financial resources.
I do not miss the work because of the shabby way I was treated. I am just feeling lost and alone. I do wish I could handle the anxiety better.
Wendy: Jan - this happens to so many near retirees, and in today's economy, more than ever. Please consider joining my Retirement Transition group - all new retirees like you, all figuring out who they are and what to do next. Click on email groups to the left... or contact me and I'll add you to the group.
I think this group might be able to put this transition into perspective for you... they are living it too!
Friday, October 29, 2010
Newly Retired... Depressed to SBI!
I asked John if I could post this email. We talked about SBI over and over by email and he finally decided to try a site. That was maybe a month ago... today I asked a question and he agreed I can post this. Thanks!
Wendy: Hey -- out of curiosity... did a website make you feel "better"? Less depressed? More active or helpful, or part of society again? Just curious if you spent enough time thinking keywords that you didn't' think "I feel down and out".....
John: For me, the web site has helped me feel much better and given me something to occupy my mind and something to look forward to down the road in anticipation things will hopefully be a success. It's given me a sense of purpose which is something that was lacking in my life after retirement. Not having a purpose or something to occupy my mind really played mind games and I was very depressed.
Thinking about KWs...well...I wonder from time to time on whether I did enough. But, one can only beat a horse so much before he kills it. If what I use doesn't work, I can always go back an use others. It's not like being cast in concrete once you do something. What I do today can be fixed tomorrow.
Hard-working Retiree, sounds content with life!
by Paul M
(UK)
I was actually driven into retirement planning because I worked in an auditor's office. I saw many people retiring comfortably, or what I thought was comfortable at that point of time, because my father never planned for his retirement.
Since we don't have any social security system out here, his responsibility fell on my shoulders. Going was tough, but god was kind.
He rewarded every bit of hard work, and punished for taking a few things easy as well.
I was finally able to save enough by 47 years or so. This helped me to call it a day.
Today, I earn for my taxes, and our medical insurances from Internet.
We do not have Medicaid and other health programs. So I have to buy health insurance, paying almost $700. I also have to earn $470 towards income tax.
Effectively, I need an earning of less than a $100 per month, which is not very difficult to earn on Internet. That keeps my mind occupied as well.
I am not constantly aware of any body pains, or why my hair is graying or falling. I had a good person guiding me earlier on in my life. He told me that do not leave anything to later stages as memory starts failing, and it may become very difficult to organize things. He was so right.
I am much more relaxed than most people in my age group. Many of my former colleagues have continued working. Some of them still do not have homes. They spent their twenties and thirties going on vacations, while I toiled, partly because I had no choice.
Now in retirement, I get up around 6.00 a.m. each morning. I brush my teeth and go to terrace. I take a walk for about an hour, breathing deeply while I do so. Then by 7.15 am I am back at home. The maid arrives. Together we finish cooking and preparing breakfast.
My father finishes his bath, and I serve him his breakfast, while I sip some tea and do a little bit of gardening in my balcony windows.
Thereafter, I take a nice long bath. I can afford to. I am no longer in a rush to move out. I come out, eat my breakfast, and earn some monies. Soon it is lunch hour; we eat lunch and watch television for a while. I take a short nap.
After that I work for a couple of hours, and stop earning for the day unless there are some unbearable television programs. I have a tendency to reach month's targets beforehand, rather finish the yearly targets, and then relax. That way, I don't have to worry later.
Because of this, I might even choose to work a bit later in the night. Alternately, I stitch something, or paint something. I am constantly humming. This is my usual lifestyle.
At times I have some guests, or I visit some friends. At other times, I go for shopping. I purchase my entire month's grocery requirements, at one go. Therefore, it is not much of a chore for me. I also purchase vegetables once in a week. We eat bread quite frequently. I go to bakers to fetch some bread.
I think I could continue with this routine for the rest of my life and not get bored.
Retirement Happiness: also known as "keeping busy"
Looking for your own brand of perfect Retirement Happiness?
Anyone who wants to be Happy shouldn?t consider Retiring!
That?s it in a nutshell.
Are you surprised? What IS retirement happiness?
Well, OK, Honestly -- I am happy and I am retired too...
I am also working from home (on this website) which provides my sense of self, providing me with something to keep busy and fulfilled, and so, I guess, I am not quite retired. If I had totally retired, I'm not sure I'd be happy as I am... just not sure.
But -- this is about YOU, not ME!
There will always be people (known as Pre-Retirees) who naturally think differently. They assume that retirement equals happiness.. the two go hand in hand. Isn?t retirement supposed to be the culmination of ones life?s work? one?s ultimate Goal... when all the things that you promised yourself would finally get accomplished?
Then you retire -- and BAM -- what happened? Where is the rainbow? What am I going to do today? Tomorrow? Where is everyone?
Yes, you have to retire... of course you do, just as I did. But -- it?s time to get real!
This is where we ponder life... where we came from and where we are headed now.
There are many more exciting and exhilarating things to do with your life than seeking "Retirement". The definition of "retirement" isn't pretty. The reality is that the days are long and the mind wanders like a drifting cloud. The brain gets confused by the apparent lack of activity and there?s not a To-Do -List in sight. In other words, things aren?t what they used to be.
Now -- to find retirement happiness, you can't seek it... but you CAN keep yourself busy so that you don't miss working. Keeping busy -- through part time work, volunteering, or finding hobbies that keep you happy, is what you really do need. You can concentrate on finding Happiness which could take the form of a fishing trip, a new friend, or finishing that book you often started but never published. Hey there?s even that strange place where people go with their computers and hang out. You might even become a landscape painter!
Happiness is an altogether better place to head for than "retirement" and when you have fleshed out your Happiness Business Plan there won?t be enough hours in the day to get it all done. It?s a bit like Work, really, only different! Very satisfying...
To be happy, you have to be active -- live there was no tomorrow and have fun, enjoy life!
The retirement decision is often out of your hands, but start thinking now about where you will be headed tomorrow -- the library, a tourist spot, somewhere other artists hang out, whatever suits you...
Destination Unknown but at least you?ll be Happy.
Forget Retirement (in the traditional stay-at-home sense) and KEEP BUSY!
More Retirement Happiness ideas here...
Early retirement
by Walter
Hi I am 55, 56 in December I have worked at two companys - one for 10 years the other for 18.I was laid off from the last 2 years ago and have a pension from both. and was wondering if it would be better to take the cash out option from one or both of the pensions I realize I will still need to work at least part time for a while to make ends meet.
thank you for your opinion. Walter
Wendy: It depends.. but usually you are far better off, in the long run, with a lifetime pension. If you take $10,000 cash -- when it's gone, it's just gone. However -- If you take a lifetime pension at $200/mo, that $10,000 is gone in the first 4 years ($200 x 12 months/year = $2400 per year x 4 yrs = $10,000).
Bottom line: those who are lucky enough for a LIFETIME pension are really lucky. You get it for life. If you retire at 62, with Social Security and two pensions, you might draw that for 20 yrs to age 82, or 30 yrs to age 92! It happens... people outlive their monies all the time but a pension is paid for life.
Play with the amount you'd get "cash" compared to the monthly (or email me with both using the "contact Wendy" on the left bar).. and I'll get back to you!
Best Wishes!!
Thursday, October 28, 2010
Retirement: Rental income and Social Security benefits
by michael nupuf
(oswego,new york, USA)
My medical corporation pays me rent for the use of rooms within my house for the business. Does this rent count toward the income limit or is separate?
Thank you. Sincerely, Michael
Wendy: Social Security counts earnings, not withdrawals from retirement accounts, etc. What I'm not sure about is self-employment...
Unfortunately, I can't answer your question and you might need to contact Social Security for the answer.
1-800-772-1213 is the nationwide number for Social Security.
Here is the http://ssa.gov/pubs/10069.html" target="_blank">Social Security page that might help you... Go half way down the page to see what income counts.
Best Wishes!
Retire from your normal way of life.
by Helen
(Sun City, S.C.)
Due to some illness with my husband, and my own, we were pretty much forced to retire. It was amazing to me that we could afford it, but we could.
Between selling our normal home, and SS, and some pension, well, it works.
Your expenses are less, and you just sort of survive. I don't think the average person thinks they can retire, but we can, and you can too.
My husband has since passed away, and I lost a little, but considering I am only feeding one person, and only paying insurance for one person, well the loss did not effect me at all. The loss of my husband was expected for many years, he was very sick, with many things. I
would like to email other woman or men who are also retired, and see how others live. Thank you.
P.S. I am healthier now then I have been in years. My doctor is always amazed.
Retirement -Time For Everything
by Sue
(Ohio, USA)
I don't do much traveling, sort of a stay at home gal who's 72.... that's a good reason to have a pen pal I say.
Wendy: Sue - I agree! Travel the world with pen pals... from the comfort of your home!
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