tag:blogger.com,1999:blog-19736419791809225332011-07-28T11:09:45.287-07:00TwentySomethingFinancehttp://www.blogger.com/profile/03160367949944461505noreply@blogger.comBlogger21100tag:blogger.com,1999:blog-1973641979180922533.post-39024152232229721142009-08-30T19:29:00.000-07:002009-08-30T19:33:08.548-07:00There are many reasons that young people should consider investing in life insurance. The primary reason for life insurance is, of course, to provide for your family after your death. Many people in their 20's don't yet have a family, however, and do not see a need for this type of coverage. There are many other factors to consider, though. Purchasing life insurance when you are young can help to protect your insurability in the future. This can guarantee that you will be covered in the future even if you become sick. And purchasing life insurance when you are young and healthy will keep the cost low.<br /><br />There are many financial advantages to purchasing life insurance now. The longer you own a policy the more cash value it accumulates. This means that you can borrow against the policy in the future. This can come in very handy to put a down payment on your first home or to pay college tuition. This is even something you may one day consider borrowing against to pay for your children s college expenses. With a properly set up policy you can even have the ability to to gain tax free access to the policy's cash value in the future.<br /><br />There are so many reasons to invest in a life insurance policy now when you are young. The savings and the access to the policy's cash value are great reasons, but still don't compare to the gift that you will one day be able to leave to your family. The time to plan for your future is now and this is a great tool to help make sure that you and your family have a financially stable future. The cost of life insurance increases the older you get, so this is not something to wait and take care of later. Attaining a good life insurance policy now will be an investment that will cost a fraction of what it will when you get older. Locking in the lowest possible rate for this kind of coverage is the best move that any young person can make to protect their future.<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/1973641979180922533-3902415223222972114?l=youngadultfinanceguide.blogspot.com' alt='' /></div>TwentySomethingFinancehttp://www.blogger.com/profile/03160367949944461505noreply@blogger.comtag:blogger.com,1999:blog-1973641979180922533.post-9184119506627848182009-04-05T14:20:00.000-07:002009-04-05T14:22:25.345-07:00An IRA (Individual Retirement Account) is a good personal investment to make, as both traditional and Roth IRAs typically require a smaller opening fee than most retirement investments; fees will differ from bank to bank.<br /><br />A Roth IRA differs from a traditional IRA in a few significant ways:<br /><br />Contributions made to a Roth IRA are not tax-deductible.<br /><br />There is no mandatory distribution age; you can start, and withdraw from, a Roth IRA at any time. There is no penalty for withdrawing your principle (your initial contribution), but you cannot withdraw earnings on the account without a fee.<br /><br />You are not required to make withdrawals from your Roth IRA at a certain age (with a traditional IRA you need to begin making withdrawals at retirement age), and you may contribute money into it for as long as you want, provided you meet the income guidelines.<br />Roth IRAs don’t have to be used strictly for retirement. In some special circumstances, such as buying a first home or paying for school, you may be allowed to withdraw from your account without paying a penalty.<br /><br />The main quality that sets a Roth IRA apart from other investments is that it is tax-free. When you reach retirement age you may withdraw the earnings and the principle free of income tax. Also, your beneficiaries can withdraw from your Roth IRA if it has been open for more than 5 years (this provision is free from income tax only; estate taxes may still apply).<br /><br /><br /><strong>The 2009 guidelines for Roth IRAs are as follows:</strong><br /><br />The maximum annual contribution is $5000 for accountholders age 49 and under, and $6000 for those 50 and older. This amount does not need to be deposited all at once; you can pay in portions so long as the total does not exceed the maximum for the year. This amount does not roll over (for example you cannot contribute $3000 one year and $8000 the next). Contributions for 2009 can begin as early as January 2, provided you designate it for 2009; contributions for 2008 are allowed until April 15.<br /><br />In order to make this maximum contribution, your gross annual income cannot exceed $105k (for singles), or $166k (for married couples filing jointly). You can make a smaller contribution if your gross income is still under $120k (single) or $176k (married filing jointly). If your income surpasses this amount you are no longer eligible for a Roth IRA account.<br /><br />While not for everyone, a Roth IRA makes for a solid small investment.<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/1973641979180922533-918411950662784818?l=youngadultfinanceguide.blogspot.com' alt='' /></div>TwentySomethingFinancehttp://www.blogger.com/profile/03160367949944461505noreply@blogger.com