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April 30, 2009

The Best Tax Deduction – Retirement Savings

Filed under: Taxes — Tags: , , , , , — admin @ 11:36 am

You don´t  have to spend money to save taxes on your income. Spending money on tax deductible items is not really the best method to avoid paying taxes. You have some other very viable options such as retirement plan where you spend money that you can deduct on your taxes but get it all back once you retire. Having a retirement plan is a great idea even if there wasn’t tax benefits to it but with the government encouraging people to work on their retirement themselves instead of relying on social security they have provided very generous tax benefits.

Retirement plans and schemes help you to save taxes without actually spending your money.

But, you can only invest your money in such plans up to a certain limit, beyond which all your money being invested is still taxed. Another thing which you must note is when investing into a retirement plan, you ought to pay some money depending upon the type of plan, which is not taxed, for a particular period of time, before you actually get the benefit, and failing to do so can be unfavorable. (more…)

January 5, 2009

Think about Retirement

Filed under: Finance — Tags: , , , , , — admin @ 8:37 pm

As we all are aware that our life is filled up with many stages, Retirement from regular job is a major part of such stages. We need to be proactive from the perspective of finance, at a younger age. We need to plan well on how we are going to lead or face our Retirement life. When thinking about Retirement, many may consider it as a period of rest and experiencing happy times with no job related worries. Well, while it is true that you no longer need to be afraid of your frowning Boss, there are other issues that you may undergo during Retirement life. Issues like Health and Financial problems top the list.

Speaking in a practical sense once you retire from your regular job, your monthly income comes to an end. You need to have enough money to make a decent living. While planning for Retirement Investments, you need to analyze the monthly expenses and other major expenses during your retirement life.

Employer Sponsored Retirement Plans

If you are employed in a Company, your Employer would offer you a Retirement Plan or Pension Plan. This savings would be of great help during the time of needs. Also this type of savings offers the benefit of tax deduction.

Life Insurance

As a person gets older, the risk of death increases. A Life Insurance is a great way to financially protect the family members or dependants at the time of his death (Insured). Premium amount paid towards Life Insurance is also considered as a tax saving investment in various countries.

Purchase of Home

It is better to purchase a home during the period when you are earning well. This would help you to reduce the rental expenses during the time of your Retirement. There are lots of Banks that offer Home Loans which you could avail to fulfill your dreams of owning a Home.

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