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Show Protect Your April 21, 2000 Volume XIII, No. 8 Future Dollars & Sense C!3bancorp 5 A whole Has golf finally gained coolness million Americans say status? Twenty-fiv- e Rodney B. Swearingen Durango, CO Vice President Investments it one thing's for sure - this isn't just your father's game anymore. has. 1 Piper Jaffray. new ball of wax But Written by Missy Votel Employees of a business that has a 401 (k) plan or salary reduction SEP may be allowed to contribute as much as 1 5 percent of their income, up to $10,000 annually (further restrictions may apply to some employees). In addition, many companies match employee 40 k) contributions. Employees contribute to a 40 1 (k) directly from their paychecks, before income taxes are withheld. Flan Today for a Comfortable Tomorrow Employees of government, nonprofit, religious, charitable, public safety or scientific organizations can participate in a 403(b) retirement plan, which is similar to the 402(k) but with unique features. If you leave an employer and receive your retirement funds, you can postpone and possibly reduce the tax that you would otherwise pay by transferring the assets directly into another employers plan or a IRA rollover. Inless you can make a direct rollover of your pension plan assets into another qualified account, without physically receiving a cheek, your former employer must withhold 20 percent of the money qgainst taxes. It may be tempting to actually hold a check in hand, but it will make it much more difficult to do a complete rollover. self-direct- Financial independence by the time we retire is a realizable goal for most of us. However, experts warn that Social Security and company pension plans arc playing less and less a role in achieving this objective. As a result, a growing number of Americans are establishing and contributing to retirement plans of their own. 7 The List A listing of the area's courses and what they have to offer Written by Missy Votel Standing tall At 24, female golf prosets sights on big time Written by Missy Votel 10 Nine the hard way Local man builds his dream course from the ground up Written by Amy Maestas DEPARTMENTS 4 tax deferred retirement fund can allow your savings to grow free of taxes until withdrawn, enabling your assets to grow faster than in a taxable account. For example, a A The view from here 1 Whats more, when you contribute to some types of retirement plans, the amount you contribute may be tax deductible. For instance, a $2,000 deductible contribution for a person in the 28 percent federal tax bracket would result in a $5(10 lax savings. And that doesn't include money saved on state and local taxes. can contribute up to $2,000 annually to an IKA; couples can set aside up to $4,000. IRAs arc tax You A wicked game deductible for anyone who is not covered by an employer-sponsore- d retirement plan. Further more, even if you or your spouse is covered, IRA contributions may still be deductible if you meet certain annual income restrictions. Written by Karen Anesi 14 Happenings Guide Guide to Four Corners arts, entertainment best bets and more On the cover: The rare and elusive Chip the Rodent was recently spotted up to his old tricks. Photographed by: Jerry McBride Photo illustration by: $20,000 annual retirement investment that earns i) percent each year would growr to over $ 1 1 ,000 in 20 years; the same investment in an account taxed at 28 percent annually would reach approximately $77,000 during the same period. Missy Votel ed The amount that you'll have accumulated by retirement depends in part upon how the assets within your account are invested. You can choose from a wide range of investments, including stocks, bonds, mutual funds, and international securities. Most investment professionals recommend no less than 5 percent and no more than 30 percent exposure to any one investment typo. That amount that you have in each type of investment within the retirement plan should depend on your risk tolerance, your investment goals, and market conditions. The best way to map out a plan for your till urc is to discuss your situation with a trusted investment professional. By working together, you can set up a portfolio that will help you meet your current expenses yet help insure that youll have a comfortable retirement. Kidney It. Snvaringcn is Vice ('resident with the Durango office of U.S. Rancor? fyvrJaffray Inc., a full service investment firm founded in 1SH5 Member SIPC, KYSZ, Inc. il , ,Wkt Mift.ithms iViv.vju.irjii NMkfVKH investment I'iwUk. ts are htf insured by the 11 A. are ikS teed by the I .S. Rink Xilkvial Assixiatiem cr its atfilules. and jnvuhv iiiveshikiil ndts, iih liklin ; visible Avs i the ptincifil ankHint invested. Sccunlk's wwlikts and senrkvs are iitlend lhniuh I S. Run iv; IlixrJailrjy tin .. mcmlvr SIIC and KYSL Iik. a subskhary tV I ..V Riikvj Brought to you by... U.S. BANCORP PIPER JAFFRAY, INC. OF DURANGO, CO 1199 Main Ave. Suite 201, Durango, CO 9 or (970) 385-694- Please visit us at our offices in the Bums Bank building. April 21, 2000 - Cross Currents 3 |