Protecting Your Retirement Savings

December 12, 2008 by Ira Warhaftig · Comments Off on Protecting Your Retirement Savings

Ok, as many of you know, the market isn’t exactly performing the way it “used to”…
and, on top of that, I have heard many people ask, or tell me, that they are thinking of stopping their contributions to their 401k, or their IRAs, or any retirement account due to the markets…

First, you do that, and your retirement will only suffer…the stock market will go up in the future…the only way the market will not go up is if the country goes out of business. Don’t see that happening anytime soon.

Second, lets say you have $10,000 currently in your 401k, you are 30 years old. Over the next 30 years until you retire (actually it should be 37, but who is counting), that money alone, invested in a diverse stock mutual fund portfolio, will rise on average 7% – 9% on average. Giving you approximately $110,000. That is if you don’t put anything additional in.

Now, lets say you have that same $10,000 account, but instead of stopping your contributions, you continue to put $5,000 a year into the account. That additional $150,000 that you put in there, along with the original $10,000, would now give you approximately, $735,000.

If you would stop your retirement contributions, and put that $5,000 into a savings account (lets say an ING account), earning on average 2% a year, you would have $315,000 in your account.

So, lets review, continuing with your contributions, like normal, $735,000.
Stopping and putting that money into a “Safe” account, $315,000.

You don’t need me at this point to see where I am heading, do you?

Bottom line, stay the course, keep putting money into your retirement account every chance you get. It will be the difference of a GOOD retirement, and an OK retirement.

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E-CPA – November 2008

November 1, 2008 by Ira Warhaftig · 1 Comment

INSIDE THIS ISSUE:
1. WARHAFTIG & ASSOCIATES, CPA Update
2. Important Dates – Mark Your Calendar
3. 2009 Financial Fitness Calendar Now Available
4. This Month’s Podcast: 401(k) Plans
5. Five Steps to Help Keep More Money in Your Pocket
6. Take Advantage of College Tax Breaks
7. Making the Most of Student Loans
8. Legal Documents You Need to Have
9. Additional Headlines

1. Warhaftig & Associates, CPA UPDATE

We are working to get our website and e-mail up and running over the next few months. This site will give you access to financial calculators, helpful and websites as well as other important information. It will also contain an archive of all the previous newsletters for your review.

Appointments are now being taken for tax planning (get a jump on next year and don’t be surprised), financial planning (investing, retirement, debt and credit card assistance) or anything else that we can be of assistance. Please do not hesitate to call or e-mail us.

2. IMPORTANT DATES – MARK YOUR CALENDAR

Please call if you are required to submit “estimated taxes” for the year. Remember that if you need to submit state estimated taxes, they should be submitted prior to December 31, 2008 so that they can be used on your federal return.

3. 2009 FINANCIAL FITNESS CALENDAR NOW AVAILABLE

The New Jersey Society of CPAs just released its 2009 Financial Fitness Calendar. This FREE calendar serves as an easy-to-follow resource guide, with handy tips and tools for improving your financial health. Get your free copy today!
http://www.moneymattersnj.com/resources/calendar.cfm

4. THIS MONTH’S PODCAST: 401(K) PLANS

In the current economy, as employees’ 401(k) balances go on a rollercoaster ride, hear from a New Jersey Society of CPAs financial planning expert on 401(k) plan basics: why it’s a useful investment vehicle, the different plan options and more. In part two of this informative podcast, our expert talks about investing in a plan and withdrawing funds: how risk and time impact a portfolio, accessing funds and tax penalties for early withdrawal.
http://www.moneymattersnj.com/story.cfm?SID=13517

5. FIVE STEPS TO HELP KEEP MORE MONEY IN YOUR POCKET

Skyrocketing gas prices have gotten a lot of media attention this year, but most consumers have noticed that the costs of many basic goods have also crept higher, taking a toll on their monthly budgets. Here are suggestions on the best ways to boost the cash in your pocket.
http://www.moneymattersnj.com/story.cfm?sid=13523

6. TAKE ADVANTAGE OF COLLEGE TAX BREAKS

Some parents spend years saving for their children’s college education, while others scramble to find last-minute scholarships and loans. No matter which approach you’ve taken, there are a number of tax breaks available for qualifying taxpayers paying education bills.
http://www.moneymattersnj.com/story.cfm?sid=13521

7. MAKING THE MOST OF STUDENT LOANS

This is the time of year many high school seniors are finalizing their decisions about which colleges they will apply to. That means it’s time for their parents to give serious consideration to how they are going to pay for that college education. Here are some smart financing ideas.
http://www.moneymattersnj.com/story.cfm?sid=13519

8. LEGAL DOCUMENTS YOU NEED TO HAVE

It’s a good idea for everyone to take steps to ensure that their wishes are carried out in case of their illness or death. There are a number of legal documents that can communicate your wishes and make life easier for your loved ones.
http://www.moneymattersnj.com/story.cfm?sid=13522

9. ADDITIONAL HEADLINES

Consumers Feel the Next Crisis: It’s Credit Cards
http://www.nytimes.com/2008/10/29/business/29credit.html?_r=1&ei=5070&emc=eta1&oref=slogin

Three Insurance Policies You Don’t Need to Buy
http://www.smartmoney.com/Spending/Rip-offs/3-Insurance-Policies-Worth-Skipping/

Six Ways to Save on Homeowners Insurance
http://www.smartmoney.com/Spending/Deals/6-Ways-to-Save-on-Homeowners-Insurance/

E-CPA is a monthly email publication provided by:
Warhaftig & Associates, CPA
64 Hickory Court
Jamesburg, NJ 08831
(732) 521-3694
www.WarhaftigAssociates.com

Filed Under: All, Newsletter
Tagged: saving for college, saving for retirement

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E-CPA – October 2008

October 1, 2008 by Ira Warhaftig · 1 Comment

INSIDE THIS ISSUE:
1. Warhaftig & Associates, CPA Update
2. Important Dates – Mark Your Calendar
3. Is My Money Safe?
4. Ideas for Cutting Your Heating Bills
5. Don’t Be a Victim of Consumer Fraud
6. New Tax Credit Available for First-Time Homebuyers
7. Being Prepared Financially After a Death in the Family
8. Preparation Can Make the Difference Between Inconvenience and Disaster
9. Additional Headlines

1. Warhaftig & Associates, CPA UPDATE

First and foremost, the market situation. A lot of people have come up and asked me
my opinion on this whole market problems. Allow me to give you a few things to
think about when it comes to your money:

If you “need” the money that you have currently invested in the market, your 401k, IRAs, mutual funds, etc within the next 5 years, then take it out now and put it into something safe like savings, treasury bills, CD’s, etc.
If you do not need the money during the next 5 years, and can “ride out the storm”, then leave your money alone, and if possible, contribute more. I know that sounds like the last thing you want to do, but markets are always cyclical and will come back on average every 3 – 5 years. Now is not the time to panic even though everyone else is. Always make sure you have enough cash on hand in case of an emergency, usually 3 – 6 months worth of bills, and your retirement accounts are fully funded.

2. IMPORTANT DATES – MARK YOUR CALENDAR

Homestead rebates have been mailed out. If you believe you should have received one and did not receive it, you can call the State of New Jersey at 877-658-2972,
or go online at www.state.nj.us to check the status online.

3. IS MY MONEY SAFE?

In the wake of Wall Street’s recent turbulence, CPA financial planners advise a calm approach to investors concerned about the safety of their assets. But if you are worried about your money – in banks, brokerages, or insurance companies – this month’s Financially Fit podcast from the New Jersey Society of CPAs provides answers to some pressing questions.
http://www.moneymattersnj.com/story.cfm?SID=13463

E-CPA – August 2008

August 1, 2008 by Ira Warhaftig · Comments Off on E-CPA – August 2008

INSIDE THIS ISSUE:
1. Warhaftig & Associates, CPA Update
2. Important Dates – Mark Your Calendar
3. Drowning at the Gas Pump?
4. How to Protect Your Financial Privacy
5. When Should You Begin Taking Social Security Payments?
6. Understanding Mutual Fund Fees
7. How Long Should You Retain Financial Records?
8. Additional Headlines

1. WARHAFTIG & ASSOCIATES, CPA UPDATE
Appointments are now being taken for tax planning (get a jump
on next year and don’t be surprised), financial planning (investing, retirement, debt and credit card assistance) or anything else that we can be of assistance.
Please do not hesitate to call or e-mail us.

2. IMPORTANT DATES – MARK YOUR CALENDAR
Estimated Taxes: 3rd quarter estimated payments are due on September 15, 2008. If you would like to learn more about making estimated payments, please give us a call.

New Jersey Homestead Rebates have started to go out to seniors and disabled Taxpayers based on applications received. All others that qualify should get them later in the fall.

3. DROWNING AT THE GAS PUMP?
Now that the average cost of a gallon of gas is hovering around $4, are you thinking about buying a more fuel-efficient vehicle? What about slowing down on the road to conserve fuel? Will a gas card with rewards ease your pain at the pump? Listen to this month’s podcast for answers to these and other questions.
http://www.moneymattersnj.com/story.cfm?sid=13360

4. HOW TO PROTECT YOUR FINANCIAL PRIVACY
With Internet use now an integral part of our lives, it’s become commonplace to provide confidential information such as bank account and credit card numbers, and even your Social Security number. Protecting your personal information today is more difficult – but it’s still critically important.
http://www.moneymattersnj.com/story.cfm?sid=13374

5. WHEN SHOULD YOU BEGIN TAKING SOCIAL SECURITY PAYMENTS?
Choosing when to retire and start drawing Social Security benefits is an important decision – one that is unique to each individual. Based on Social Security regulations, you can begin taking payments as early as age 62, but the age at which you retire will have an effect on the amount of your payment.
http://www.moneymattersnj.com/story.cfm?sid=13375

6. UNDERSTANDING MUTUAL FUND FEES
Mutual funds let you buy into a diverse pool of investments, including short-term securities, stocks and long-term bonds, among others. However, there are typically charges associated with mutual funds, and you should understand those fees and how they will affect your investment.
http://www.moneymattersnj.com/story.cfm?sid=13376

7. HOW LONG SHOULD YOU RETAIN FINANCIAL RECORDS?
Every year, taxpayers wade through piles of financial documents to find the information they need to file their taxes. But what happens to all that paperwork once you’ve mailed your return? How long do you have to keep your records in case of a tax audit?
http://www.moneymattersnj.com/story.cfm?sid=13380

8. ADDITIONAL HEADLINES

How Relationship Break-Ups Impact Home Insurance
http://www.insure.com/articles/homeinsurance/significant-other.html

Four Reasons to Forgo Credit Monitoring Services
http://www.smartmoney.com/deal-of-the-day/index.cfm?story=20080714-credit-monitoring-services

E-CPA is a monthly email publication provided by
Warhaftig & Associates, CPA
64 Hickory Court
Jamesburg, NJ 08831
(732) 521-3694
www.WarhaftigAssociates.com

Filed Under: All, Newsletter
Tagged: credit rating, privacy, rebates, saving for retirement, Social Security

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E-CPA – July 2008

July 1, 2008 by Ira Warhaftig · Comments Off on E-CPA – July 2008

INSIDE THIS ISSUE:
1. Warhaftig & Associates, CPA Update
2. Important Dates – Mark Your Calendar
3. What You Need to Know About Your Spouse’s Finances
4. This Month’s Podcast: Shopping for a Mortgage
5. Tips for Getting a Raise
6. Is Your Credit Score Costing You Money?
7. Ways to Repair Your Credit Score
8. Retiring Early
9. Additional Headlines

1. WARHAFTIG & ASSOCIATES, CPA UPDATE
Beginning this month, you will receive the E-CPA newsletter from us, which gives you some additional information in the world of taxes, finances and the economy. We hope that you enjoy it and find it useful in your everyday activities.

Also, if you would like to schedule an appointment for tax planning (get a jump on next year and don’t be surprised), financial planning (investing, retirement, debt and credit card assistance) or anything else that we can be of assistance,
please do not hesitate to call or e-mail us.

3. WHAT YOU NEED TO KNOW ABOUT YOUR SPOUSE’S FINANCES
Are you and your spouse knowledgeable about each other’s
financial situation? Are critical documents up to date? Are
you prepared if a spouse is incapacitated or dies? In case
of an unexpected emergency, it’s prudent to know the details
and location of each other’s financial records and documents.
http://www.moneymattersnj.com/story.cfm?sid=13322

4. THIS MONTH’S PODCAST: SHOPPING FOR A MORTGAGE
The home buying process can seem complicated, but if you take
things step-by-step, you will soon be holding the keys to
your own home. Hear from a CPA about how doing your homework and shopping around can help you negotiate a better deal.
http://www.moneymattersnj.com/story.cfm?sid=13333

5. TIPS FOR GETTING A RAISE
Are you earning the salary you deserve? In a tight economy,
many people are finding that they aren’t receiving
impressive increases when evaluation time rolls around.
Don’t despair. There are some steps you can take to maximize
your chances for a larger paycheck.
http://www.moneymattersnj.com/story.cfm?sid=13323

6. IS YOUR CREDIT SCORE COSTING YOU MONEY?
In these uncertain financial times, even those with excellent credit histories may have trouble getting a mortgage or other type of loan. That’s why it’s important to know your credit score and the effect it can have on your checkbook.
http://www.moneymattersnj.com/story.cfm?sid=13324

7. WAYS TO REPAIR YOUR CREDIT SCORE
Do you know your credit score? People with poor scores usually pay higher interest rates, which translate into larger monthly payments for a mortgage or an auto or student loan. Poor scores can also cost you when renting an apartment, applying for a cell phone plan or even getting the job you want. Luckily, there are steps you can take to improve your score.
http://www.moneymattersnj.com/story.cfm?sid=13325

8. RETIRING EARLY
Most of us dream about retiring early. For a number of
Americans, it is not just a fantasy, but a reality. A few
even accomplish it by their 30s. There are different ways to
approach an early retirement strategy, but one aspect is
certain – it requires careful planning.
http://www.moneymattersnj.com/story.cfm?sid=13303

9. ADDITIONAL HEADLINES

As Gas Prices Soar, CPAs Offer Advice –
http://www.moneymattersnj.com/story.cfm?sid=13291

Beyond Boomers: Financial Conversations With Generation X –
http://www.moneymattersnj.com/story.cfm?sid=13305

Same-Gender Couples Can Benefit from Professional Wisdom –
http://www.moneymattersnj.com/story.cfm?sid=13304

E-CPA is a monthly email publication provided by:
Warhaftig & Associates, CPA
64 Hickory Court
Jamesburg, NJ 08831
(732) 521-3694
www.WarhaftigAssociates.com

Filed Under: All, Newsletter
Tagged: career, credit rating, home financing, saving for retirement

Please Share With A Friend:

Protecting Your Retirement Savings

E-CPA – November 2008

E-CPA – October 2008

E-CPA – August 2008

E-CPA – July 2008

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