Over the last couple of weeks, our family, like many others across the nation, gathered to celebrate July 4th – Independence Day. Invariably, when the discussion turns to me, family and relatives ask benign questions about the investment world, stock and bond markets, when is the next correction coming, etc.
Everything was going fine until my son-in law, a veteran who served in Afghanistan, asked me “What’s this thing about a $400,000 Roth IRA that’s available to the family if a soldier dies in the line of duty?”
I had to admit that I had never heard of such a thing, but promised to get back to him with an answer. I immediately started researching what it was all about. Here is what I discovered.
In 2008, then-President George W. Bush signed
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The beneficiaries of service members who are killed in the line of duty are typically eligible to receive two forms of compensation. One is a death benefit from a Servicemember’s Group Life Insurance (SGLI) policy that automatically pays a maximum of $400,000 to the beneficiary of each deceased service member. The other is a military death gratuity that pays $100,000, also automatically. The HEART Act allows, if desired, for beneficiaries to lump both of these amounts together. Please note that these contributions are permitted above and beyond the standard amounts that may be contributed to them.
Therefore, thanks to the HEART Act, a total of $500,000 ($400,000 from SGLI and $100,000 military death gratuity) can now be contributed to a Roth IRA and then be withdrawn tax-free at retirement by the beneficiaries. This is a tremendous opportunity to grow a significant sum into an even much greater one,
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Families who receive the death-related benefits have a choice to roll over a portion of their funds to a Roth IRA, and reserve the rest for everyday needs or unforeseen expenses. That said, not rolling over a significant portion of the death benefits might not be in the beneficiary’s best interest. It is unlikely that, in my opinion, the widow or widower will ever receive another single opportunity that has the potential to make such a difference in his or her family’s financial future.
In reading several different reports on the HEART Act, a common thread I came across is that it has been underutilized since inception in 2008. I’m sure some of it has to do with the fact that many military families, (like many other families), typically do not have the financial knowledge to properly take advantage of this great benefit. Finding a knowledgeable financial advisor is key in providing education and guidance in order to take advantage of this once-in-a-lifetime opportunity.
So, thanks to my son-in-law, I realized once again that it never too late to learn something new like the HEART Act, and that maybe someday I’ll be able to help a military family make the best of a tragic
Throughout the book, Patrick Kelly explain the benefits of tax-free retirement. He laid down the foundation of having a joyful and peaceful retirement. He explains two great products for “Tax-Free Retirement”: Roth IRA and Universal Life Insurance. Depending on income and how long a person will take to retire, one may be more suitable than the other. The Roth IRA is suitable for individuals that want to save less than $4000 per year, is not looking for life insurance, or someone that is close to retirement. The Roth IRA has no required contribution and the premium is always accessible making it perfect for people with unstable income or close to retirement. Furthermore, another solution that Kelley provides for “Tax-Free Retirement” is Universal
... (as they were not taxed while contributing to the traditional IRA), this option still may have the greatest tax benefits in the future.
The dreaded day arrived too soon. There I stood four months pregnant, feeling both scared and worried, on a warm sunny August day getting ready for our tearful goodbye. Being a military spouse, you know that you will...
The story of Jason Poole as presented by Grady is a clear picture of the ravage of the potentials of soldiers in the face of war, and the wrong priorities of the American government in spending billions of dollars for the war that have no clear advantage for them or the American people, that is worth dying for. The sending of potential young men and women in Iraq to sustain its war lacked the basic objective that warrant their sacrifices, as well as the billions of dollars spend in pursuing such unclear purpose that is wrongly labeled “war on terror.” As per records, American fatalities in Iraq as of January 20 stood at two thousand two hundred twenty five (2, 225), while casualties numbered at 16, 472 (The New York Times, par. 8). Grady cited that medical treatments for brain injuries in Iraq alone would cost fourteen billion dollars.
As men and women serve this country we often forget the importance of what they did and how we give back to them for what they have experienced. Through student surveys that have been gathered, it has been proven in the course of knowledge that 80% of all thirty students surveyed that say they know of someone who is or was a veteran and only 57% of those Veterans receive help. Richelle E. Goodrich stated, “Have you ever stopped to ponder the amount of blood spilt, the volume of tears shed, the degree of pain and anguish endured, the number of noble men a...
Declaring Independence On May 10, 1775, the Second Continental Congress met in Philadelphia. The Congress dealt with the military crisis the colonies were in with England. It organized forces around Boston into the Continental Army and appointed George Washington to commander-in-chief. The Battle of Bunker Hill was the first major battle fought in the war.
American colonists were faced with a decision: continue to be a part of Great Britain or secede and become an individual country. The latter was what the majority of colonists favored, and thus making it no surprise that they managed to accomplish this – justified in doing so - and venture out on their own, as their own. Great Britain owned the colonies and the American colonists were proud to be in unity with this colony known as the mother country, until conflicts climaxed and Americans felt there were no other options than to rule their own. The British taxed Americans unconstitutionally, violated their rights, and forced them to rely on Britain to convert their natural resources into usable goods to raise the influx
The term revolutionary is defined as a dramatic change in government that can occur through force and violence, or in a peaceful manner, such as the election of 1800. Therefore, the American War for Independence was, by clear definition, a revolution. Though not a typical social revolution, as the British government was not entirely destroyed in Europe, it was a revolution in the sense that it created a new government for the Colonies. The American War for Independence was an attempt by the thirteen North American colonies to become independent of the Europeans and their government, the British royalty (Textbook) . The war was prefaced by nearly ten years of extreme tension between the colonials and the British, following attempts at taxing the colonies, as well as not allowing the colonists any sort of representation in the British government (Textbook). A war such as this was inevitable noting all of the outrage and hostilities coming from both the British and the colonies. To the colonists, this war was of great importance, as they were
It was once assumed that the government would provide services for veterans, but nonprofit organizations and communities have been picking up the slack to help veterans get back on their feet after returning home. The government is dependent on nonprofit organizations to supply veterans and their families with the necessary goods and services. The Wounded Warrior Project (WWP) is an organization that provides services for veterans and their families. The WWP focuses on mind, body, economic empowerment, and engagement, all things that help veterans through post-war symptoms (The Wounded Warrior Project). The government is recommending giving less housing allowances, limiting pay raises, and having higher fees for health care benefits; other cuts would include stores being unable to give discounts to military families (Nissenbaum and Barnes). The amount of money veterans receive for housing, health care, and retirement is being cut left and right by the government and the money is being used and put towards other departments. In California, The County Veterans Service Officers Inc. plays a very important role in verterans’ lives (California Association of County Veterans Service Officers, Inc.) Many organizations help veterans who are in need of services because our government is not always able to provide...
Veteran’s healthcare has recently been the subject of much discussion within American political circles. However, most ordinary Americans know little of this burning issue. Although support for veterans has risen to its highest levels compared to other times in American history, veterans need more than support to survive; they ne...
Everyone knows someone who has been touched by the recent Veterans Affairs Scandal. Someone in your family or a friend may have served our country only to come home and be delayed medical attention when they arrive at their local VA. This has personally touched my family; my spouse is a Marine Veteran. He needed to see a doctor and I asked him to make an appointment with the VA in Gainesville, since most of the cost would be covered; he laughed at me. He proceeded to tell me that the last time he went to the VA, he arrived prior to seven am and waited almost eight hours to see the doctor and the doctor walked in, told him he thinks he has this condition, wrote him a prescription and walked out within five minutes. My spouse looks at the VA not as a hospital but as a Band-Aid clinic. This experience is not uncommon at most VA’s given the recent accusations that the VA has a “secret wait list”.
There are millions of veterans that come back from overseas disabled, whether that means physically or mentally. The transition from military life to civilian life can be difficult for any soldier no matter how long they serviced their country. A growing number of veterans are in need of services for different disabilities. These disabilities happened or were aggravated during military service. These veterans are protected under the American Disability act.
...ation, planning, and considerations, retirement funds can be extremely low and can therefore cause severe hardship. It may cause retirement to be pushed back past the age of 70 to have access to enough funds. It could also bear stress to other family members, children for example, which would have to help out financially and delay their retirement plans. Utilizing the proper education, research tools, guidelines, and determination retirement plans can be set in place early to leave room to fluctuate over time. It is no one else’s responsibility but one’s own to prepare for their future, and therefore should take matters in their own hands. The question now is, are you prepared for retirement, and if not what steps are you going to take?
Some people say that the definition of independence is a complex word and idea to try to define. In al truth independence is a perplexing word to try to define. This is because everybody has their own speculations of what independence is. Very infrequently are their two people that have the same perception of what the definition of independence is. What I perceive the definition of independence is the absolute freedom to do what you want, and to not be held back by any rules or laws of government or man, but by the rules and laws of nature and your own self concise. My view of independence may greatly differ form your beliefs on the definition but in this paper I will try to show exactly what my perspective on the definition of independence is by my experiences, my beliefs, my thoughts, and research on the subject at hand.
Line of inquiry: Millennial’s finances are better than people have assumed, more specifically their retirement savings.