Barry Bulakites Blogs

Image source: moneysense.ca A lot of people make mistakes when investing in their retirement plan. Such an endeavor takes decades to fulfill, and small missteps can have major repercussions on your life savings. Keep in mind that every job, every deposit, every effort you put into your retirement plan leads to you having a comfortable life after your professional life. With that in mind, here are the top mistakes people make when investing in their retirement plan. Investing on a plan with outdated assumptions If you are working with a relatively old insurance company, be sure to make sure that you update your retirement plan using a variety of market returns assumptions. Your savings, no matter how big they are, are still subject to real-world market conditions like recessions. Even small changes in the economy can easily derail your retirement plan. Always check the computations if there is a significant change in the market. Image source: moneysense.ca Reti...

Individual retirement accounts, or IRAs, are essentially savings plans. People set up IRAs to defer paying taxes on earnings as their savings continue to grow until they decide to withdraw the money. Remember that there are different types of IRAs, each with its own tax eligibility and tax implication as established by the IRS. Image source: investopedia.com Having an IRA has many advantages. A traditional one, for example, will allow you to claim a tax deduction when you contribute to it. It helps reduce your taxable income, as you don’t pay income tax for the money you’ve put on there. Also, as your savings grow, they continue to be tax-deferred. In short, there’s no need to include any of your dividends, capital gains, and interests when computing your annual tax return. The first step in setting up your IRA is to decide on which IRA type best suits your needs. You should study closely if a traditional IRA or, say, a Roth, is what you need. You then will h...

Millennials are often regarded as financial freewheelers. People are always quick to assume that the twenty and thirty-somethings of this era do not take their financial health and retirement seriously. However, more and more millennials are becoming concerned and are taking charge of their future. Image source: moneynewsdaily.com Now is the perfect time for millennials to save for their future. Options may be unavailable for them when they start saving late. A study led by The New York Times zoomed in on the financial lives of five millennials who were saving for their future. The research landed on these conclusions:  -These millennial savers are taking advantage of Roth retirement funds. These include individual retirement and 401(k)’s that are different from traditional retirement schemes made after tax.  -Millennial workers to contribute as much as what their employers are willing to match in a 401(k).  Aside from taking care of thei...