In 1984, the U.S. and Canada finalized an agreement that allows a person to qualify for both U.S. Social Security and Canadian retirement benefits. This made it easier for people who worked in both countries to qualify for retirement benefits when they may not have been able to without the agreement. In the process, they have also thoroughly confused anybody trying to figure out what … Continue reading Qualifying For Both U.S and Canada Retirement Benefits (Totalization Agreement)
A cousin of mine recently went to a bank to open a Roth IRA. He figured by going to the bank he would get a fair deal with low fees. “They have free checking”, he told me. The bank had set it up so that he would make $400 per month payments right from the checking account into the Roth IRA. So, why did he … Continue reading Protect Yourself From High Mutual Fund Fees
You have saved and saved throughout your working years and now it is time to start taking some money out. You didn’t think the government was going to let you have all of that money tax free did you? A lot of things in retirement compared to working are different, and that includes taxes. Some taxes go up, some go down, and others are completely … Continue reading Taxes on 401(k) and IRA Distributions in Michigan
It’s no secret that I am a big fan of the monthly pension compared to the lump sum. Unlike, Dave Ramsey and probably every one of your co-workers, I think that most people should take the monthly pension when they retire. A steady stream of monthly income in retirement that isn’t impacted by the stock market, is hard to beat. Still, the monthly pension is … Continue reading The 5 Biggest Risks of the Monthly Pension
A couple years back I received an excited email from my father in-law. The title of the email read: My Medicare Birthday! He thanked many of us for reaching out and wishing him a happy birthday. He also happily pronounced that he would be saving about $500 per month in healthcare premiums because of the switch to Medicare from private insurance. You may not be … Continue reading Do I Need to Turn on Medicare at Age 65?
Recently, a client of mine called because he is getting closer to retirement and feels like he needs to get more conservative in his 401(k). If you have ever read a finance book or listened to any financial “guru”, the investment advice is always the same; Invest more aggressively while you are younger and more conservative as you approach retirement. My client had heard this … Continue reading Planning on a Lump Sum Pension? May be Time to Up The Risk of Your 401(k)
I have good and bad news for those of you that live in the U.S. but have a Canadian RRSP from when you lived in Canada. The good news is that there is a really good chance your taxation here in the states will be lower than if you took the same distributions in Canada. The bad news, trying to figure out just how much … Continue reading How is my Canadian RRSP Taxed in the U.S.?