Five of the Best Retirement Strategies for your Finances
The majority of seniors look forward to retirement, and the last day of work is often a joyous occasion. All seniors should have a solid financial plan in place before leaving work though. More than 40 percent of seniors have at least one savings account, and a large percentage of seniors have a 401k savings account. Individual retirement accounts are also common among retirees. Some senior citizens receive money from an annuity or a pension and almost 25 percent of private sector workers have a traditional pension. Most seniors have less than $70,000 saved for retirement, and more than 50 percent of senior citizens receive half of their income from Social Security. When you retire, you still need to grow your savings. An investment professional can help you accumulate more wealth.
The Saver’s Credit
If your gross income is less than $30,750, you may qualify for the saver’s credit. For couples, your gross income must be less than $61,500. The tax credit is based on how much money you contribute to your IRA. The tax credit applies to IRA contributions up to $2,000 for singles. The credit applies to married couples contributions that are up to $4,000. The credit is worth up to 50 percent of the amount you contribute to the IRA account.
Tax-free IRA Charitable Contributions
When you turn 70 years old, you usually have to withdraw money from your traditional IRA. You also have to pay taxes on the money as well. You can avoid the distribution tax by transferring the money to a qualified charity. The transfer limit is $100,000.
The MyRA
When you have a MyRA account, you invest in treasury savings bonds and your savings will not decline. The money is transferred to a private IRA account when you have $15,000 in the account. The transfer will also occur when the account is 30 years old.
Employer Contributions and Your Tax Refund
Most companies offer a retirement savings plan. Some employers will match your contribution. If you are going to take advantage of this option, you should make sure that you are fully vested in the company. If you are not fully vested, you may not be able to take the employer’s 401k contribution to another company. When you are selecting funds, you should always consider the expense ratio. You should invest in low-cost funds. Investment fees can reduce your savings. Your annual 401k disclosure statement can help you identify low-cost funds. If you deposit your tax refund into your IRA account, your savings will grow faster. Your tax refund can be deposited into a Roth IRA, traditional IRA or a MyRA.
Tax-Free Retirement Income and Other Investments
If you have a Roth IRA, your savings will not accrue taxes while the money is in the Roth IRA account. If you do not make any withdrawals until you are at least 59 years old and you will not have to pay taxes on the money. The savings account must be at least five years old. Also, you may want to keep some of your investments outside of your retirement accounts and have your bank do portfolio management on them from time to time. Ordinary income is taxed at a higher rate. Long-term capital gains are taxed at a lower rate.
The average retiree lives on less than $20,000 a year, and some seniors are surprised by the unexpected expenses that come with retirement. Medicare is not a comprehensive insurance plan and only covers preventive care, but you will need a more comprehensive health insurance policy. You should also consider the annual inflation rate. If you rent your home, your rental fees will increase every year. Your utility bills will also increase as well.
5 Things to Know Before Starting a Career in Criminal Defense
In a world of mandatory minimums and unjust sentencing laws, many law students are feeling the call to a career in criminal defense. According to a Galveston criminal defense attorney, “The United States has the highest rate of imprisonment in the world.” Certainly, the market is starved for good defense attorneys, and a career in this field can be highly rewarding. Everybody wants to be Matlock or Atticus Finch – the noble warrior fighting the good fight and seeking justice for the innocent victim of circumstances. But the reality of a criminal defense career is quite different. Here are a few things you need to be aware of before deciding on your course of study.
State and Federal Criminal Defense Representation is Different
A key factor to understand if a person is contemplating becoming a criminal defense attorney is the difference between federal and state criminal prosecutions. Some experienced criminal defense lawyers would suggest that the federal system is more formal, more restrictive.
Many criminal defense lawyers practice in both federal and state court. However, there are others who elect to focus their practices in one system or another.
It’s Not All About Trials
The vast majority of criminal cases never end up in trials. Trials look very exciting on television and in films. However, in “real life,” well over 90 percent of criminal prosecutions are resolved through plea agreements. In fact, this is usually the best-case scenario for your client.
With this in mind, a person contemplating becoming a criminal defense lawyer needs to understand the importance of being effective at negotiating. Although being able to perform in court is vital, having strong negotiating skills is crucial as well.
Get Experience Before Putting Out a Shingle
Many people consider becoming criminal defense lawyers with the idea of starting their own practices. Starting a practice can be exciting and rewarding, but you are entering an extremely competitive market. Thus, it is crucial for a person serious about becoming a skilled criminal defense lawyer to gain experience before ever thinking of heading out into practice on his or her own.
A great starting point for a criminal defense attorney is in a prosecutor’s office. This can be on either the state or federal level. Keep in mind, larger municipalities also have prosecutors as well.
Most Cases are Not Crusades for Justice
Most criminal defendants are guilty. They may not be guilty as charged, however. Prosecutors have a tendency to overcharge in order to leave room to negotiate a plea settlement. There is something morally upright about protecting clients against overzealous prosecution and the dangers of mandatory minimum sentencing laws, but be aware that your clients will almost certainly be guilty. The career will not be an exercise in fighting great crusades on behalf of innocent people wrongly charged with crimes.
Long Hours and Not the Best Pay
Lawyers always make great money, right? Not necessarily. Particularly when a person starts in the field of criminal defense, he or she can face long hours at work and compensation that doesn’t compare with what attorneys in other areas of the law may be earning. Over time, and as a person establishes a reputation, financial remuneration will increase, however.
A career in criminal defense can be highly rewarding, but you need to be in love with the idea of being underappreciated, working long hours for guilty clients. Too many law students fall in love with the idea of criminal defense but not the reality. I don’t want to scare you away entirely, but I also don’t want you going into a career that you hate.
New Consumer Review Protection Law
What You Should Know About the New Consumer Review Protection Law
Consumer reviews have been made famous in the expanding digital marketplace. Once confined to “I’d like to speak to the manager, please,” consumer reviews can now potentially dictate the continuing success of a company (or lack thereof) through popular platforms used as a resource, for better or for worse, by thousands of potential customers of any given business or industry.
These reviews take anywhere from seconds to minutes to produce, and are submitted with the push of a button. To say that not all reviews are fair would be an understatement, and some companies have fought back — sometimes by filing libel lawsuits against particularly scathing reviewers. This has led to other practices, widely decried as unfair and discriminatory.
What the New Law Says
President Obama signed the Consumer Review Fairness Act of 2016 into law on December 14th of this year.
Prior to the implementation of this law, multiple lawsuits had been filed by businesses against former customers who had written negative reviews, on the basis of their reviews being libelous. After certain high-profile lawsuits were found in the defendants’ favor, many companies began adding clauses to their service contracts forbidding the posting of negative reviews online — to a varying extent.
Some prohibitions were just that: flat prohibition against engaging in negative online reviews, often excused by a lack of oversight on websites such as Yelp or Amazon. Others specified reviews without content (a low rating, with no actual review being written), reviews without supporting media, or negative reviews based on matters that were not brought to the owners’ attention first. These clauses were then used as added rationale for filing suit, whether for damages or to have the offending reviews removed.
Under the Consumer Review Fairness Act, any contract which includes a clause restricting the consumer’s right to file a review, evaluation, or complaint with regard to a service or product provider is automatically void. Such contracts will not be upheld in court. Specific provision is made with regard to electronic reviews, so there is no confusion over the point. The law is purposely worded to avoid loopholes by being broadly defined, covering most conceivable situations whereby a posted review might offend.
How the Law Affects You
A business can still file a libel suit if it feels like it has been unfairly critiqued, although this strategy is rarely successful. Many businesses have adopted the strategy of responding to unfair reviews with comments of their own, presenting their side of the account, and providing evidence that not everything went the way the customer would have everybody think. Businesses like Kyäni watch their reviews and watch for negative reviews. When a business reputation is on the line, Kyäni reviews their complaints and customer reviews closely.
The law strikes down any contracts which would prevent anyone who is involved in the contract from voiding the contract if a negative evaluation is provided. Pointedly, this would work in both directions: a customer has no legal room to complain if a business were to deliver a negative evaluation of their behavior (as per a response to a review posted online), for example. This law, however, does not stop sites like Ethan Vanderbuilt from posting fake reviews online.
Do I Qualify for Social Security Disability?
Sustaining a life-altering injury is damaging in many ways; besides from taking away your former mobility and freedom, a disability comes with additional expenses and possibly results in an inability to work, which means you will face the added stress of no longer having an income.
Thankfully, all hope isn’t lost. The United States Social Security Administration offers disability payments to those who have been injured and are no longer able to earn an income or operate at their previous, uninjured level of mobility. In past years, people have abused the system and collected payments when they were not as disabled as they claimed, making it much harder for those who really are injured to get disability.
It’s best to do some research before bothering to file to spare yourself any hassle. Here are the Social Security disability requirements:
You Worked Before Your Injury
In order to qualify for Social Security disability benefits, you must have previously worked a job that was covered by Social Security. If you aren’t sure about this, you can call your former employer and speak to the HR department.
You Don’t Work Now
Disability benefits are not instantaneous. That is, you cannot apply for them if you get hurt and can’t go to work for a few weeks. Instead, you must have proof that your disability will prevent you from working for at least 12 consecutive months.
Some people who work are still able to collect disability. However, there are restrictions. If you work and make more than $1,130 a month, you will not be considered disabled and therefore ineligible to receive disability payments.
If you have worked or are having trouble proving your disability to the SSA, you should consult a SSD attorney who can represent your case.
You Match Social Security’s Definition of “Disabled”
according to an SSD Attorney in Phoenix AZ, Social Security defines “disabled” as someone who is injured to an extent that they are no longer able to work entirely or at the level they once did.
There are certain medical conditions that will allow you to be considered automatically disabled. You can read the full lists for both adults and children here.
You Cannot Do the Work You Once Did
If you can’t do the work you did before your injury but are able to adapt to new work, then may not qualify for disability. Your age, medical condition, past work experience and transferable work skills will be taken into account by the Social Security Administration to determine whether or not you are eligible for disability.
So how do you qualify for Social Security disability payments?
In order to receive disability payments, you must:
- Have sustained a serious injury.
- Be out of commision and no longer able to perform your past work.
- Be working and earn more than $1,130 per month.
- Have transferable work skills that would allow you to earn an income even with your disability.
For further information, check out the official Social Security Administration’s website for FAQs, a full breakdown of disability criteria and additional resources.
5 Legal Issues Seniors Can Encounter
Issues with the law don’t go away as you age. Many seniors find themselves dealing with a unique set of legal circumstances as they get older. Some of these can seriously impact retirement and create a nightmare of stress and paperwork. Here are just a few examples of unique legal problems and some solutions that may interest seniors.
Social Security Insurance Issues
Social security should be an easy-to-claim benefit for seniors, one for which they have paid their entire working lives. However, the combined force of irresponsible government spending, population booms and busts, extended lifespans, and the usual bureaucratic mess built into government systems have made social security a significant challenge. A dispute over eligibility or lost checks may even require the aid of an attorney to figure out. From making sure you are fairly compensated to dealing with SSI issues related to a deceased spouse, many seniors find that dealing with social security is one of the more difficult parts of aging.
Powers of Attorney
As seniors age, many find it important to have a power of attorney in place so that their wishes will be followed. According to Norton Shores Elder Law Attorney, a properly-drafted power of attorney can ensure that seniors’ assets can be protected in the event of dementia onset. Whether this is used for medical matters or financial, it’s important that seniors have a properly crafted document in place and that they find the right person to hold that power. This is often an issue that has a ticking clock attached to it, and must be done with some haste.
Real Property Issues
After a life of owning a home, it’s only natural that many seniors might be looking to cash out or move to a more ideal environment. Whether the move is a downgrade to someplace smaller or a real attempt at building a dream home, there are myriad legal issues that seniors may encounter when selling real property. From dealing with liens and boundary disputes to working with zoning boards and homeowners’ associations, these issues can often lay dormant until it’s time to put the house on the market. Wealthy seniors may feel tempted to simply gift their properties to their children or grandchildren, but this may have serious tax implications if not handled correctly, according to the IRS.
Family Law Issues
Seniors can run into issues with family law in many different ways. Some may have to deal with issues of divorce, while others may consider adoption as they age. In an age of grandparents raising grandchildren, some seniors might have to worry about custody issues even after they retire, and even issues of child support. Family law issues don’t stop just because one has gotten older – and indeed, they often becomes more involved.
Wills and Trusts
Estate planning is also something that seniors often begin to worry about. From drafting a good will to making sure money will be in place for future generations, this is perhaps the one area of law that is most dominated by older clients. You should consider estate planning mandatory, regardless of your age. Failure to plan will not only increase the amount of probate taxes, but may saddle your heirs with an unwanted headache and create property disputes that may drive a permanent wedge in their family relationships. Don’t do that to your loved ones.
For most of us, retirement is the time we hope to be the most abundant season of our lives. Making this a reality, however, requires intentional planning to maximize retirement savings and minimize legal hassles. The first step is being aware of the difficulties you may face and how to prepare for and respond to them.
Troubled Teens – School Alternatives to Avoid Future Legal Trouble
It can be difficult to understand the thought process of a teenager. We like to compare past experiences and feelings from our own teen years to those of today. However, society has changed and so has the outlook of life for many young adults. To add insult to injury, 70% of teens who commit crimes have a mental illness. It can be a heart-wrenching time for families to watch helplessly as a troubled teen spirals downward.
Recognizing Problems
Despite the social atmosphere that exists today, teens still need the same understanding and nurturing that has always existed. Parents often feel that they have done less than their role in raising a child when a troubled teen is the result. However, recognizing that there is a problem and that intervention is needed is the first step in controlling an out-of-control situation.
Considering the Options
Counseling is usually the first step that parents consider, but as the old adage goes, ‘you can lead a horse to water but you can’t make it drink’. Some troubled teens are ready for this step in discussing personal problems, but for others, it may not be enough.
Youth incarceration is too often a reality that provides little help in dealing with social, mental or abusive situations among teens. Further damage can be realized by punishing an already troubled teen. Unsafe conditions and lack of guidance by authority often opens the door to further crime.
Military schools were once thought of as a last resort in straightening out troubled teens. Building character, respecting authority and learning discipline were the guidelines set forth in many institutions. However, the one-size-fits-all standard of these schools has changed dramatically through the years.
An Alternative that Works
Diamond Ranch Academy, located in Hurricane, Utah, is an alternative that is structured in an elite private school environment. Academics and personal therapy help each teen realize their worth and potential in a caring environment that houses like-minded individuals. The 55-acre ranch provides individualized treatment for troubled teens, according to specific personalities and past problems. Nature, horsemanship, athletics, art and clubs are among the various activities that help to round out a promising future for students.
Diamond Ranch Academy is accredited in academia so credits earned are easily transferred to high schools, colleges, and universities throughout the United States and internationally. Troubled teens that have diminished ambitions of entering the world of independent living are introduced to responsibilities of money management, budgeting, work ethic and problem-solving.
Legal trouble is too often the result of troubled teens that need proper guidance. Expensive and traumatic, this is a road that can be avoided by understanding your options and choosing the right path. Regardless of a teen’s past, they are the future. Seizing the opportunity to show them the way to conquer problems and build a positive life is the main objective of Diamond Ranch Academy. Call today for a free brochure or to plan an onsite visit.
Sources:
http://www.troubledteens.com/troubledteensblog/teen-depression-statistics.html
https://www.verywell.com/causes-of-youth-violence-2611437
When Is It Okay to Sue?
Suing is a common course of action when someone has been done wrong. Frivolous lawsuits keep the courts tied up hearing matters that are absurd. However, used properly, a lawsuit can help recover damages caused by the neglect of others. Some people have religious convictions against suing another person. Others feel that they should use old-fashioned methods to try to resolve matters amicably. Someone who has been unjustly injured, may wonder if it is morally okay to sue someone?
Avoiding Frivolous Lawsuits
Accidents happen every day, and most of them are not due to gross negligence on anybody’s part. In these events, you are probably not entitled to financial compensation. If your life is forever altered by the negligent actions of another person, on the other hand, does filing a lawsuit become justifiable? The short answer is: yes!
Examining Your Intentions
You must examine the basis for your lawsuit. If you are needing to stretch the truth in order to profit from someone else’s partially-fictional mistake, you’re probably entering this from the wrong angle. Conversely, someone who has been injured by a legitimate mistake has every right to seek compensation. If you have terrible pain and suffering, lost wages, medical bills, and you are unable to live life as before, then you can and should seek restitution.
Suing the Insurance Company
The reason you pay for insurance is to have coverage for unforeseen events. According to CPR Lawyers, a high percentage of personal injury lawsuits are glorified insurance claims with the added benefit of professional representation to make sure you are not taken advantage of. The insurance company will cover your medical bills along with other related expenses. You are not retaliating against a person for making a mistake, you need them to pay for the damages they caused.
When Is It Okay to Sue?
Someone who has been injured should not think twice about collecting compensation for their time and trouble. A personal injury attorney can help to settle a claim regarding the spine, brain, back or another injured area. Because of their vast experience dealing with these issues, they can effectively defend you. Their goal is to get you the best compensation package possible. Someone who has been unjustly injured may want to take the moral high ground and avoid a lawsuit; however, sometimes suing is the best way to recover damages from an accident and move on with your life.
Drunk Driving – When to Hire a DUI Attorney
If you have been charged with driving under the influence in your state, chances are good you need a DUI attorney. In order to better understand why you may need legal assistance, let’s take a look at what happens when you are arrested and charged with this offense:
When you are arrested for this offense, you will most likely appear in your area’s District Court the next business day. This is called your arraignment hearing.
Having a DUI attorney with you during your arraignment can be very helpful. If for some reason you do not have a lawyer at this time, it is very important that you keep quiet and simply answer the basic question such as name, address, etc. The court will, by law, enter your plea of not guilty. It will then set a court date for what is called a pre-trial conference.
If you have not yet hired an attorney, after your arraignment, now is the time to do so. He or she can help you prepare your defense against these charges, whether you wish to plead guilty or not guilty.
Do I Need to Hire a Specialized DUI attorney?
The answer is yes. Lawyers are very much like doctors in that they often specialize in one area of their profession. A DUI attorney is someone who is experienced and well-qualified to handle these particular types of cases and charges. He or she will know how to best defend you against these charges because he or she will know the state laws and rules as they pertain to this type of charge. This high level of expertise and experience becomes even more critical if you are facing a second or third offense for driving under the influence.
What Can a Qualified Attorney Do For Me?
More than you probably know. To start, a lawyer who specializes in this type of case will sit down with you and get your side of the story. He or she will review the police reports, sobriety tests given, and blood alcohol tests, as well as any mitigating circumstances that may affect your case. From there, he or she can help you develop a defense, should you wish to fight the charges. Or they can help you draft up a guilty plea and present your case to the court for the best possible outcome.
One of the most important benefits to working with an experienced DUI attorney is that he or she can give you an honest assessment of your case. They can offer various possible options and, from there, you can decide what is the best action to pursue for your particular case.
Your lawyer can also set up a meeting with district attorney to see if a deal can be worked out. For many, especially those with multiple convictions, this can result in much less harsh punishments if found guilty on the charges.
Your lawyer may also be able to work out more favorable payment plans for court costs and possible fines. He or she may be able to have the original charges reduced. They may be able to work out a deal in which you are able to keep your driving privileges in order to go to and from work, even if you plead guilty to the charges.
These are just a few of the many issues that a qualified and experienced DUI attorney can do for you should you be charged with driving under the influence. Their expertise and guidance when it comes to police reports, sobriety tests, state laws, and working with the court, can be invaluable for anyone who may be facing a court appearance for this offense. It is money well invested and can result in less severe and less expensive penalties and punishments.
How to Store Tax Documents More Safely
In our current day and age, security and privacy are utterly important. This is especially true when it comes to storing your tax documents, all of which contain pertinent information that could be stolen and violated.
In this article, we are going to discuss three different options that are at your disposal for storing tax documents securely.
Option #1: Go Totally Electronic
While this isn’t the first option for many that I know, going totally electronic with your tax documents is a viable, secure option. When you file your taxes via Turbotax or H&R Block online, you are actually creating electronic copies of all of your tax forms.
This means that you can shred any paper documents that you receive as soon as you enter them into one of these platforms, thereby eliminating any paper documents that could be stolen from your home.
Then, these online platforms are secured with the highest level of bank-grade security. Information stored on these servers is basically more secure than the papers that you store in your home, and they have a very, very small chance of being hacked away from you.
Method #2: Buy a Lockbox for Your Home
Of course, the electronic method isn’t one that sits comfortably with everyone. As an alternative, if you decide that you would like to keep your tax documents in your own home, the next best option is to buy a lockbox that you can securely store your documents in.
A great idea is to bolt this box to your garage floor so that it can’t be picked up and stolen. Also, you will want to make sure that the lockbox is fireproof so that it wouldn’t be destroyed in the rare case of a home fire.
Method #3: Store Your Documents in a Safe Deposit Box
Finally, if you don’t feel safe storing your documents online or in your own home using a lockbox, the only other viable alternative for protecting your documents is to store them in a safe deposit box with your local banking institution. This method is going to cost you a couple of bucks each month, but you can be fairly guaranteed that your tax documents will be safe here.
The only foreseeable problem with this method would arise when you begin to collect so many documents that the bank doesn’t have a box large enough to store them all. This can easily happen after collecting tax documents for 20+ years. However, this can be solved by paying for a second box.
References
Are MLM Companies a Pyramid Scheme?
Short Answer:
No. MLM companies are legal and trusted companies that allow their distributors or recruits to legally make money based on product sales or the sales of those below them. So long as they are not being paid exclusively for signing people up or being compensated for the amount of product they themselves must purchase, then there is no pyramid scheme occurring
Long Answer:
A pyramid scheme is a type of business model where a person recruits others with a promise of making money for enrolling others rather than selling products and services. The scheme gets the name pyramid from its shape, putting one individual at the top with multiple layers of individuals stacked underneath, each being cheated while those on top benefit profusely. Individuals are tricked into thinking that by recruiting more individuals, they will make money. Even though no product has been sold, no investment made, no wealth created and no service provided, the empty promise of getting rich quick fools more people than it should.
It is important to note that pyramid schemes are, in fact, illegal. Pyramid schemes most often make themselves evident in Ponzi Schemes or fraudulent MLM companies.
Ponzi schemes are illegal. It starts by taking the money an investor has given you, and rather than investing it, it is used to pay past investors…after of course, paying yourself a handsome salary. The investor never receives disclosure as to what will happen with their investment, or they are lied to and given false hope. The investors never know that they invested into a Ponzi scheme and they almost never get their money back. The only way they receive any ROI (return on investment) will be if another investor is tricked into “investing.”
Unlike pyramid schemes and Ponzi schemes, MLM companies that use the network marketing model are perfectly legal. Unfortunately, there are a few bad eggs that have used this model as an illegal front. Pyramid schemes using the guise of an MLM company will more often than not to sell products or services with no independent value. On other occasions, they may require their distributors to find and recruit new people to the company solely for the purpose of driving profit to the company. The Federal Trade Commission (FTC) closely monitors MLM companies to ensure that each MLM company is operating legally and truthfully.
You are probably wondering, how do people end up getting involved in a pyramid scheme? One aspect that is particularly dark is how recruiters within the pyramid scheme blindly rob innocent people by convincing them to spend their hard-earned money on a lie. These consumers are led to believe that by “investing,” they will not only be paid but will profit greatly in a relatively short period of time. Soon after “investing” into the scheme, the money is given to the initial recruiter. In order for them to be profitable, they must now bring on more people under them, each of whom will go through the same buy-in process. The promise is usually conveyed as the ability to make a large profit with just a small investment or small amount of work – the classic “get rich quick” mentality.
Unfortunately, as more people are duped into joining the pyramid scheme, the base of the pyramid becomes increasingly weak, eventually reaching a point where it is no longer strong enough to support the upper parts of the pyramid. One of the biggest deceptions of a pyramid scheme is the investment and/or company will simply sustain itself. It is not possible for this to happen due to the fact that there is no actual business taking place. It is simply an intricate process of money changing hands, ultimately ending up on the top of the pyramid. It is only a matter of time before the new recruits or investors lose the money they have invested in being a part of the company.
The bottom of the pyramid scheme — where the majority of people are located — is the most vulnerable portion of the scheme. It soon becomes impossible to find the number of new investors and people needed to pay the level above. Mathematically, there is no possible way for those on the bottom of the pyramid to make money. Those at the bottom of the pyramid are always the ones who lose as their money is taken from those on top.
Do yourself a favor and always research a company thoroughly before you make any sort of commitment. A few MLM companies that have had run-ins with the FTC and it is a good idea to research if there are any open claims against the company. Simply do an online search for the name of the company and scam. For example, you could search for Kyani scam or DoTerra scam. This should bring up any results with the FTC Scam Alerts pages if there are any. Now that you know that MLM companies are not pyramid schemes, you can simply do the research on the company you are thinking about joining.