Products July 28, 2009

Sunwest Trust Rolls Out Individual 401(k) Services

An Albuquerque, New Mexico-based firm has launched an “Individual 401k (i401k)” for small-business owners looking for retirement plan options.  

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“The i401k gives self-employed business owners the same tax benefits that large corporations have enjoyed for years,” says Terry White, CEO of Sunwest Trust, Inc. in the announcement. 

According to the press release, with an i401k, business owners may be eligible to contribute far greater amounts to their 401ks than they could with any other type of retirement plan, and business owners can designate some or all of your deferrals as Roth contributions.  The press release also notes that, unlike a self-directed IRA, you may take loans from your i401k. 

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White notes “…the i401k is not for every small business owner and that there are restrictions and guidelines someone must follow in order to be eligible.” White recommends, those who seek to invest using the i401k, “consult a tax professional to make sure that they are making their contributions correctly and to help them fill out the form 5500-EZ when their i401k accumulates over $250,000.00.”  Additionally, to be eligible to have an i401k, you must be a self-employed business owner with no full-time employees other than your spouse.  

Sunwest Trust is an independently owned private company that offers self directed IRA custodian, escrow and now Individual 401k services. FDIC insured banks back the self directed IRA funds of their clients, according to the firm.   

More information is available at http://www.SunwestTrust.com.

 

Data & Research July 27, 2009

What Would You Give Up to Retire Earlier?

A global survey commissioned by ING DIRECT found Americans are less likely than people in other nations to sacrifice cars and pets to save money.

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While 40% of Americans said the current economic situation will cause them to retire at a later age, and of those, 34% think they will have to work 10 or more years than originally planned, 30% said their vehicle would be among the last three things they would sacrifice to save money. Italians (14%) and Spaniards (18%) were more inclined to give up their vehicles, according to a press release, while only Brits (30%) love their cars as much as Americans.

Nearly a quarter of Americans (22%) said their pets would be among the last three things they would sacrifice to save money, compared to 17% of Canadians, 15% of French, and 12% of Italian respondents.

However, almost half (46%) of U.S. respondents said they would avoid making credit card purchases to save money, and more than half (51%) said they would cook more at home or bring lunch to work.

Among U.S. respondents, having a financial buffer in case of emergency is the number one savings goal, selected by 35% of respondents. Saving for retirement ranked third, with 16% of respondents picking this as the most important savings goal.

Love Lost?

The survey suggests that love might not conquer all when it comes to the current economic recession.

Nearly three in 10 Americans (29%) said the recession has "added stress to," "strained," or even "ruined" their marriage/relationship, according to a press release (see “Love Lives not Immune to Recession”).

The survey found the current economic recession is splitting up and straining more marriages and relationships in America than in eight other major nations. Twelve percent of respondents in Germany, 24% in France, and 23% in Canada said the recession has "added stress to," "strained," or even "ruined" their marriage/relationship.

"Whether it's at home, in the boardroom or in the car showroom, people around the globe are affected by the recession," said Arkadi Kuhlmann, president of ING DIRECT USA, in the release.

The online survey was commissioned by ING DIRECT and conducted by TNS in nine countries where ING DIRECT operates, including Australia, Canada, United States, United Kingdom, France, Germany, Italy, Spain and Austria. In the United States, the survey took place between May 26 and June 9, among 1,052 adults age 18 and older.

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