34 THE QUEENS COURIER • SENIOR LIVING • NOVEMBER 23, 2017 FOR BREAKING NEWS VISIT WWW.QNS.COM
senior living
Why IRAs are an important part
of the retirement planning mix
Th ere are so many questions people
have - no matter their age or stage in life
- about saving for retirement: When is
the right time to start saving? How much
should I be putting aside? What are the
savings vehicles I should be using?
While the answers vary for everyone,
depending on their individual situation
and goals, there is one way to save for
retirement that truly works for everyone.
An IRA is an investment option available
to anyone who wants to start saving,
and is a great way to either supplement
an employer-sponsored retirement
plan - such as a 401K - or for people who
may not have access to such a plan. IRAs
are a “bucket” that holds diff erent assets
for investment growth and can include
stocks, bonds, CDs and more.
Th ey are easy to open at your credit
union or bank, and are oft en available
in plans that range from high to low risk,
with as much or as little hands-on management
as you’d prefer.
Th ere are several diff erent types of IRAs
to choose from, but it might be worth
getting help when it comes to deciding
which is your best option.
“It’s important to work with a fi nancial
adviser to determine the best IRA plan for
you based on your age, retirement goals,
current income and employment status,”
said Ryan Blankenship, associate director
of deposit products at Bellco Credit
Union. “For those who may not have
a fi nancial planner, credit unions typically
off er investment planning services
through partner organizations as part of
the credit union membership.”
Th e three main types of IRAs are
Traditional, Roth and SEP:
Traditional IRA: Th is investment helps
you save on taxes, since all of your contributions
are tax deductible. When you
withdraw funds for retirement, they are
taxed at your current income tax rate, but
there are penalties for drawing money
before age 70 1/2.
Roth IRA: A Roth IRA provides a bit
more fl exibility. Contributions are made
with your post-tax income, which means
you can’t deduct them on your annual
income tax. A benefi t, however, is that
you are able to draw money earlier without
paying a penalty, so long as you don’t
withdraw more than you’ve personally
contributed. Any interest that you earn
on your Roth IRA is not accessible until
age 70 1/2 without penalty.
Simplifi ed Employee Pension (SEP)
IRA: SEP IRAs are available to business
owners and are a great option for people
who are self-employed to save for
retirement. Contributions are tax deductible,
and money can be withdrawn at any
time. Any withdrawn funds are subject to
income tax as well as an additional 10 percent
tax if drawn before age 59 1/2.
One important note is that each of these
IRA types has eligibility requirements
and contribution limits. For example, if
you have a 401K through your employer,
there are limits to how much you can
contribute to an IRA.
No matter which you choose, IRAs can
be a powerful way to save for retirement,
no matter how far off that may be.
Courtesy BPT
Turning 65? Choosing the right Medicare
Part D plan starts with 4 simple rules
If you’re turning 65 in 2017 or 2018,
you’re one of 10,000 people who become
Medicare-eligible each day. Choosing
Medicare prescription drug coverage can
be confusing, especially for the fi rst time.
You may have questions about which
plan fi ts your healthcare needs and budget
or how to enroll. Th e good news is, it
doesn’t have to be overwhelming if you
know these four rules.
Rule #1: Lower premium plans may
mean higher costs. Plans with a lower
premium may end up costing more in the
long run if they have higher drug copays,
which can really add up.
Rule #2: Not every plan covers every
drug. Drug lists (formularies) can change
every year and so can the drugs you take.
Be sure to check your plan’s formulary
each year to make sure any medications
you take are covered.
Rule #3: Check that there are pharmacies
close to you. Th at way, it’s easier
to fi ll your prescriptions. Select a plan
with a wide range of “preferred” pharmacies,
which typically off er lower co-pays
than standard pharmacies in the network.
Also, see if using a home delivery pharmacy
or a 90-day supply could lower your
costs even more.
Rule #4: Look for 24/7 access to pharmacists
and Medicare experts who can
answer questions about your medicines
and off er drug safety tips, money-saving
alternatives and expertise in drugs to treat
specifi c conditions.
Also, remember to check the Medicare
Part D plan’s Star Rating. Th is is the
overall quality and performance rating
(out of 5 stars) based on member satisfaction
surveys and other measures by
Th e Centers for Medicare & Medicaid
Services (CMS).
For more information, please
visit www.Medicare.gov or www.
RoadmapForMedicare.com. To talk to
an Express Scripts Medicare adviser, call
1.866.544.3794, 8 a.m. to 8 p.m., 7 days a
week (TTY users: 1.800.716.3231).
Courtesy BPT