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NEWSLETTER
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REPORTS
SMART MONEY STRATEGIES FOR EVERY AGE
Your 20s & 30s
Establishing Your Financial Foundation
Your 40s & 50s
The Peak Earning Years of Middle Age
Your 60s & up
The Retirement Years
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by Jordan E. Goodman |
Today may not be your actual birthday, but this year could be bringing you or someone in your life a financial birthday. As you go through life, you have various financial rights and responsibilities at different ages. Perhaps you will have one of these birthdays sometime this year, so you should know what to expect:
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Age 14
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The Kiddie Tax disappears. After age 14,you pay income tax at the
child's tax rate, no matter how much income is earned. Under age
14, you pay tax at the parent's rate on any income over $1500.
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Age 17 |
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Your parents lose the child tax credit. Under that
age your parents can claim $600 off their taxes. This is also the
last year that you can contribute to the Coverdell education savings
account up to $2000 a year.
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Age 18 or 21
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The age of majority in your state, which means you can do
whatever you want with money in a Uniform Gift to Minors Act
(AGMA ) account in your name.
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Age 50
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First year you can contribute the extra catch-up $500 into an IRA
and/or a 401k. That means you can contribute $3500 instead of
$3000 if you are merely 49. These catch-up amounts will rise in
coming years, eventually to $1000 a year.
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Age 59 ½
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First time you can take withdrawals from a 401k, IRA or other
retirement plan without a 10% penalty.
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Age 60
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Age at which a surviving spouse can get Social Security benefits
based on the deceased spouse's work record.
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Age 62
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The first age at which you can start collecting
Social Security, though you are penalized as much as 20% for
starting to take benefits so early.
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Age 65 |
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First age when you can retire and get full
Social Security benefits.
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Age 70 |
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Age at which you can delay taking Social Security to get the
maximum benefit. Benefits don't increase any more if you wait
longer, so start collecting now.
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Age 70 ½
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Age at which you must start taking minimum distributions from
your retirement plans like IRAs and 401ks,or you get heavy
penalties.
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Whatever birthday you celebrate this year I wish you the best year
ever and a solid financial future.
Happy Birthday!
Please come get your birthday present from me.
Jordan E. Goodman is America's Money Answers Man. He is a regular contributor to Public Radio International's
The Marketplace Morning Report and appears frequently on NBC's The Today Show, PBS, MSNBC, CNN, CNBC, and Nightline. For 18 years, Mr. Goodman was on the editorial staff of Money magazine, where he served as Wall Street correspondent, in addition to his role as weekly financial analyst on NBC News at Sunrise for 9 years.
He is the author of Everyone's Money Book (over 200,000 copies sold) with 6 special focus editions on College, Credit, Financial Planning, Real Estate, Retirement Planning and Stocks, Bonds and Mutual Funds and the co-author of Barron's Dictionary of Finance and Investment
Terms.
His website MoneyAnswers.com
is full of resources, tips and strategies you can use to build a solid financial future.
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Copyright © 2003 Amherst Enterprises. All Rights Reserved Worldwide. |
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