Retirement Planning - Individual

IRA's

The following information was drawn from Form 5305-A Section 408(a) of the Internal Revenue Code.

What is an IRA? It is an Individual Retirement Account, designed for people who do not have a retirement plan at work. The money you contribute to your IRA will reduce your income on your tax return by that same amount for the year you select, either the current year or the prior year if you make the contribution by April 15th. The maximum a person can contribute into an IRA for 2008 is $5,000 and going forwar4d the amount will be adjusted by the cost of living in $500 increments.* There are special catch-up provisions for people who have attained age 50, for 2008 that additional allowed amount is $1000.

*These contribution limits are due to sunset after 2010 unless extended by Congress.

How do I invest it? You have many options and vehicles available to invest your retirement funds, mutual funds, certificates of deposit (CD's), stocks & bonds, even a simple savings account. We would help you make a decision based on your investment tolerance and other factors pertinent to your personal situation and goals. To invest for the current year you must deposit your money into your IRA no later than April 15th of the following year.

What does it cost? The fees associated with investing vary from company to company and the type of investment you choose. There are also investment risks associated with any investment. These things should be disclosed to you when you discuss the options with your financial representative. We will give you a prospectus when you meet with us, we ask that you read it carefully and call us with any questions you have regarding your investment before making any decisions.

When can I withdraw from my investment? An IRA is designed to be there for your retirement years, so you may access it at age 59 1/2 without any penalty. However you will have to pay income taxes on the money you withdraw from your account at your then current income tax level. If you choose to take money out of your account before you turn 59 1/2 there is an additional 10% penalty that must be paid to the United States Government. After you reach age 70 1/2 you must start taking distributions from your IRA. Those rules will be given to you when you set up your account with us.

Roth IRA's

The following information was drawn from Form 5305-RA Section 408(a) of the Internal Revenue Code.

What is a Roth IRA? It is an Individual Retirement Account similar to an IRA except that you do not get to reduce your income on your tax return. You pay taxes on the money you put into your Roth IRA, but when you withdraw the funds at or after age 59 1/2 there is no tax obligation on the amount you initially put in or any of the growth it may have experienced when you make qualified distributions. The maximum a person can contribute into an Roth IRA for 2008 is $5,000. There are special catch-up provisions for people who have attained age 50, got 1008 that additional amount is $1000. Also, your contribution into a Roth IRA is not limited by your participation in another retirement plan, other than a Traditional IRA and certain income level limitations.

How do I invest it?   You have many options and vehicles available to invest your retirement funds, mutual funds, certificates of deposit (CD's), stocks & bonds, even a simple savings account. We would help you make a decision based on your investment tolerance and other factors pertinent to your personal situation and goals. To invest for the current year you must deposit your money into your Roth IRA no later than April 15th of the following year.

What does it cost? The fees associated with investing vary from company to company and the type of investment you choose. There are also investment risks associated with any investment. These things should be disclosed to you when you discuss the options with your financial representative. We will give you a prospectus when you meet with us, we ask that you read it carefully and call us with any questions you have regarding your investment before making any decisions.

When can I withdraw from my investment? A Roth IRA is also designed to be there for your retirement years, so you may access it at age 59 1/2 without any penalty. You may also access it prior to age 59 1/2 without penalty for the following qualified distributions- disability, the purchase of a first home.   If you take the money out of your account before you turn 59 1/2 for a non-qualified event there is a 10% penalty on the principal (the money your deposited) that must be paid to the United States Government. If you draw out all of the principal and then draw out the growth attained (before age 59 1/2) you will be taxed on the growth as ordinary income at your then current income tax rate.

Retirement planning can be complicated - call us today to make an appointment for a one on one chat about your options.

860-464-0121     800-696-2998

Advisory Services are provided through Creative Financial Designs, Inc., a registered Investment Adviser,  and Securities are offered through cfd Investments, Inc., a registered Broker/Dealer, Member FINRA & SIPC, 2407 South Goyer Road, Kokomo, IN 46904 (765) 453-9600       cfd Investments and Creative Financial Designs are not affiliated with         Hourglass Insurance Services

Mission Statement: To seek and find the best options available to fill our client's needs in the areas of health insurance, life insurance, annuities and long-term care insurance. Also to provide conscientious, thorough and realistic strategies to help clients achieve their goals, being especially aware of the frequent need for self directed retirement planning.

Philosophy: We are seeking to develop a long-term relationship with our clients. One based on honesty, trust and service. We only recommend to clients what we would do for ourselves if we were in the same circumstance.