Creating Estate Tax Savings For Your Child Using A Roth IRA Written by Richard A. Chapo
Parents must give serious thought to protecting their family through estate tax planning. While life insurance and trusts should be a part of every plan, Roth IRAs can be a simple tool for passing money to your child on a tax-free basis. Roth IRA First, we need a quick summary of Roth IRA. A Roth IRA is an after-tax retirement vehicle that produces huge tax savings because all tax distributions are tax-free. That statement can a bit confusing, so lets break it down. The downside of a Roth IRA is fact that contributions are not tax deductible as with traditional IRAs or 401(k)s. The upside of a Roth IRA, however, is that all distributions are tax-free once person reaches age of 59˝. So how can you use a Roth IRA to pass money to your child? Opening A Roth IRA For Your Child One of biggest keys to retirement planning is “time”. The more years you spend saving money for retirement, more you should have when that blessed day arrives. Imagine if you had started saving for retirement when you were 16. How much bigger would your retirement nest egg be? What if you purchased Microsoft stock in 1990 and watched it split eight times? Okay, that was painful example if you missed that opportunity. Nonetheless, why not do for your child what you didn’t do for yourself? The fundamental goal of estate planning is to pass as much of your estate as possible to your family on a tax-free basis. You can transfer relatively small amounts of money to your child now. If you have a 16 year-old child with a Roth IRA, you can contribute $4,000 in 2005. That $4,000 is going to grow tax-free for 43 years and be worth quite a bit. A ten percent return would result in account growing to roughly $200,000 and full amount would be distributed tax-free. There are other practical advantages to opening a Roth IRA for your child.
| | Chinese PregnancyWritten by Wong Yee Lee
Chinese PregnancyTraditionally in China, when once people got married, they would immediately get ready for having a baby. That is why symbolic things such as dolls or lotus seeds would be put on beds of newly weds on their wedding day so as to bring in meaning of having a baby as soon as possible. When once a married woman becomes pregnant, things for baby will start to be prepared. Prams, cot, baby clothes, etc will be readily prepared to welcome arrival of new born. From now on, health of mother is of utmost importance. Therefore, mother should reduce her workload, eat healthily, and employ prenatal education. Prenatal education has come into being for over 2000 years in China. It was believed that a good pregnant mother should eat only meat which was cut only in square cubes, sit only on properly built chairs, walk unswingingly, talk softly, etc. By doing so, foetus would be able to learn most valued virtues. Although in present days above mentioned practice is no longer common, pregnant women in China still behave very carefully so as not to do anything which affects foetus. Still now most people believe that structure of house or flat should not be changed while a woman in house is pregnant since it will cause foetus no good but harm. The first month after giving birth The first month after giving birth is very important for a mother. She needs most rest and best nutrition. Otherwise, her body will not be able to recover and can easily get ill. In this month, she can't go outdoors, can't be exposed to wind, can't wash with cold water, can't drink cold water, can't read books etc. However, if a mother really has to wash herself, she should do so by using water boiled with dried ginger skin. In some places in China, a mother must not wash her hair because otherwise she will get a chronic headache.
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