SEP IRA

Posts Tagged ‘SIMPLE IRA’

Question: Retirement fund questions? To withdrawal or not…SIMPLE IRA?

I had a SIMPLE IRA with a local company from here in Michigan from a job I had a few years ago. Going through year end tax info. Totally forgot about it. Anyway….beginning of ‘08 it was worth 9600 and at the end of the year it’s now worth 5800. I ahve a few questions. (1) don’t you think my investment pro would have called or made some changes? (2) can i claim any of these losses on taxes (3) I am considering pulling the little that is left out and paying off a vehcile and a trailer? I’m certainly upset but shame on me. I am enrolled in my new companies retirement fund…let me know what you all think!
The investment representative made the decisions on where to invest the money…it is what it is…does 30% seem like a lot to lose during this time period of six months to eight months?

Answer: In this market that is no more than about average to loose. If you pull the money out you will have to pay a penalty of 10% plus taxes. Many mutual funds are down over 50%. There are no losses to claim since you did not pay taxes on the money to begin with. What is your interest rate on car and trailer? It is probably not high enough to offset the tax bill you would be shackled with.

Almost every investment adviser would advise to stand pat or to roll the money into your own IRA account with a reputable Mutual Fund company. Whether that advice would be good or not I do not know, but that is what I would recommend.

Ray Potter Testimonial For John Park

Question: I have a SIMPLE IRA and am looking into investing in a closed-end fund…?

The fund is considered a PFIC (Passive Foreign Investment Company) and as a result I need to make several decisions for tax purposes. What are my options? I hold no position yet but plan to shortly.

Answer: Depending on the sector of the market or region, for example, you feel will do best will determine which Closed-End Fund to invest in.

One of the best websites to do Research on Closed End Funds is www.cefa.com and this is based on Performance!

If for example, you like China, ythen ou may want to consider CHN. If for example, you like Mexico, then you may want to consider MXF. If for example, you like Eastern Europe, like Russia, then maybe you want to consider Morg Stanley Eastern Europe, RNE. If you like international REITs, then maybe IGR would be best. It all depends.

These are some of your options that you have. Being that you are considering it for tax purposes, maybe the fund, HTD, may be right for you.

But whether you prefer this one or that one, I reccommend to you this site for Research on CEFs. Best of Luck.

Personal Finance & Investing : How to Become Wealthy

Question: Is a SIMPLE IRA through your employer a good investment to rely on for retirement?or is trad/roth IRA better?

I’m 21 and have a SIMPLE IRA through my employer but I’m wondering if it’s best to invest my money into a trad/roth IRA or should I keep contributing the max per year to the SIMPLE IRA. Which would be best for me in the long run?

Answer: A SIMPLE IRA is just like a Trad. IRA, except with the employer match part, as long as you’re working for that company, you can make contributions up to $10,000.00 (Tax Year 2007). You may want to speak with a financial advisor, who can provide you with more information pertaining to IRA’s with your specific financial situation in mind.

Personal Finance & Investing : How Does a Roth IRA Work?