Call Us at 1-877-95-IRAMD [1-877-954-7263]

Tax Free Retirement

Saturday, November 20, 2010 | Posted in General

Tax Free Retirement

Tax-Free Retirement Strategy

If you found that the way you had been acquiring or building wealth up to this point in your life was not the best or most efficient way, how soon in your life process would you want to know and change that? If we could show you a way to build (or continue to build) a Roth benefit without market risk or contribution limits, would you want that?

Who would benefit most from this strategy? Let’s explore tax-free retirement opportunities for:

            1) Business owners

            2) Physicians

            3) High-income earners (and everyone else)

            4) Children and grandchildren

Our Tax-Free Retirement strategy will help you structure, prioritize, and access your SMART $$ LIST.  Maximize your results through…

            1) Free Money

            2) Tax-Free Money

            3) Tax-Deferred Money

            4) Taxable Money

For instance, if you’re a business owner or physician, here is a question for you….

            If we could show you a way to put away money for the future (i.e. retirement), that would grow tax-free in a principal protected market linked environment, that you could access tax-free… and oh, by the way, has no contribution requirement for your employees, would you want that?

Why equity-indexed life insurance may be the perfect retirement solution for business owners:

            Reason #1 – Business owners need life insurance to cover their business debt and to provide for their families if they were to die. Therefore, owning a life insurance policy is not an extra, but rather something that should be a standard part of all business owners’ portfolios.

            Reason #2 – The business itself usually provides plenty of deductions during the accumulation phase of business owner’s lives, so the desire for additional tax deductions such as a tax-qualified plan is often minimized. Conversely, once retired, business owners often find themselves with little or no tax write-offs since the business has been sold – maximizing the desperate need for tax advantaged income in retirement.

            Reason #3 – Since life insurance is not considered a tax-qualified plan according to the IRS, there is no requirement for the business owner to fund a similar plan for his or her employees.           

            Reason #4 – There is no limit as to how much can be contributed in any given year (or saved within) a life insurance contract – other than what the contract itself specifies. Since business income can change dramatically over the years, this flexibility can be a huge advantage.

            Reason #5 – It’s simple and easy. There are no separate record keeping or tax forms required. As a matter of fact, Uncle Sam doesn’t even know when an individual policy exists. There is no reporting requirement.

            Reason #6 – It provides instant liquidity (for pennies on the dollar) to the owner’s heirs or estate if the owner decides to keep the business until his or her death.

            Reason #7 – Did we mention principal protected, market linked, TAX-FREE income that never even appears on your tax return in retirement?

Why equity-indexed life insurance may be the perfect retirement solution for physicians:

            Reason #1 – Many doctors make more than $160,000 per year, which is the phase-out limit for being able to contribute to a Roth IRA. Therefore, physicians have no tax-free retirement option available other than life insurance. And even for those who make less than the phase-out limit, a Roth only allows a few thousand dollars per year for the contribution amount.

            Reason #2 – Doctors are specialists. They have given their lives to be the best at what they do – and they are. However, this level of specialty often leaves little time for less urgent activities such as retirement planning.

            Reason #3 – Doctors are sometimes taken advantage of by sales people in the financial realm hocking half-baked, poorly formed investment strategies promising outlandish returns.

            Reason #4 – Doctors generally need a lot of life insurance for three reasons. One, they need to protect a large income for their families. Two, they may carry high debt, due to large medical school bills and low wages during residency and internship years. Three, doctors as a group have one of the lowest life expectancies of any profession.

Why equity-indexed life insurance may be the perfect retirement solution for everyone else:

            Question #1 – Are you someone who wants to receive tax-free income during retirement?

            Question #2 – Are you someone who wants/needs to save more per year than what a Roth IRA allows?

            Question #3 – Are you someone who is currently investing in a tax-qualified plan above the company matched contribution?

            Question #4 – Are you someone who is contributing to a deferred compensation plan?

            Question #5 – Are you someone who has a need for life insurance protection?

            Question #6 – Are you someone who makes more than $160,000 per year?

            Question #7 – Are you someone who has a desire to multiply your assets for the benefit of your family, or a cause you believe in?

If you found yourself answering yes to two or three of the above questions, then it is likely that this is a retirement/income planning strategy that will serve you very well.

To say it bluntly, a properly structured equity-indexed life insurance policy may provide the most tax-advantaged, cash accumulation, living benefits, low maintenance, fully liquid, principal protected saving strategy on the planet.

If you think income tax rates will be higher in the future, or you have concerns about market volatility, call us. We may have a solution that will help you keep the government out of your pocket in retirement, and eliminate your concerns about market instability.

Call me for your complimentary retirement checkup!

Mike Habib, EA at 1-877-95-IRAMD [1-877-954-7263]

Also online at http://www.iramd.com                                                                       

CA License #0G78926

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Friday, August 13, 2010 | Posted in General

Stretch IRA

Stretch IRA

The stretch IRA is one of the best kept secrets of individual retirement account. The main objective of this IRA is to maximize the time of tax deferral. It is possible to defer taxes to the next generation with the help of stretch IRA.

The beneficiaries of the survivors of the IRA owner can further defer taxes as the assets of the IRA can be distributed as per the wish of the actual deceased owner. The benefit of the deferral period helps the beneficiaries to arrange for the payment of applicable taxes.

Stretch IRA is a popular way to handle estate related issues that may arise after the death of an individual. It reduces the possible legal problems. Creating a stretch IRA is simple and its benefits are many. Like any other individual retirement account, you can easily create a stretch IRA.

However, in the stretch IRA, the owner would need to specify who would inherit the assets of the stretch IRA. When there are several beneficiaries available for the stretch IRA, the owner can decide the percentage of the funds that each beneficiary would receive.

Benefits of Stretch IRA

If you use the stretch IRA option, you can get several benefits.

  1. As the owner of the stretch IRA account, you can be sure that all the assets (cash) will be distributed according to your wish among the beneficiaries.
  2. You can let the money in the stretch IRA account be distributed over a period of time. So, you can structure the stretch IRA in such a way that your beneficiaries (children, family, and friends) receive the money annually for a period of time. This ensures financial security for your children or beneficiaries.

When you structure a stretch IRA, it is good to inform each beneficiary, who were supposed to get the money from your IRA account, about the structure of your stretch IRA account. Let them know about the IRA account well in advance. This is necessary because it will help them to prepare for their own finances to accommodate the taxes that will come due when the period of deferral is completed.

The Stretch IRA Strategy

Creating a stretch IRA account can be a very good strategy for extending the tax-deferred IRA assets across multiple generations.

When Should You use a “Stretch” IRA?

If you have enough money to cover your expenses after retirement and you would not need all the assets in your IRA for such expenses, then you can go for the stretch IRA strategy. You get tax deferral for a certain period, during which the assets in the IRA account will grow tax-deferred.

You can use stretch IRA as an important estate-planning tool.

How Do You Stretch a Traditional IRA?

It is possible to stretch a traditional IRA.

If you want to stretch your traditional IRA, it is possible to do so. If your spouse is the beneficiary of your traditional IRA, it is possible for her/him to roll the balance into his or her own traditional IRA after your death and then he/she can name a younger beneficiary.

After that, your spouse may take required minimum distributions (RMDs) after deciding the life expectancy. Your spouse can delay RMDs until he or she reaches 70½, if he/she is under age 70½ when you die. After the death of your spouse, it is possible for the second generation beneficiary to transfer the assets to an inherited IRA. After that, the beneficiary can take RMDs over his or her own life expectancy.

It is possible for you to name a younger non-spouse beneficiary directly. The beneficiary then can decide to transfer the assets to an inherited IRA and take RMDs.

Call us for your free personal case analysis at 1-877-95-IRAMD.

Stretch IRA, Ed Slott, Ed Slott Stretch IRA, Roth IRA, IRA Rollover, Multi Generational IRA LOS ANGELES COUNTY:

Acton - Agoura Hills - Alhambra - Altadena - Arcadia - Artesia - Avalon - Azusa - Baldwin Park - Bell - Bellflower - Beverly Hills - Burbank - Calabasas - Canoga Park - Canyon Country - Carson - Castaic - Cerritos - Chatsworth – City of Industry -Claremont - Compton - Covina - Culver City - Diamond Bar - Downey - Duarte - El Monte – South, - El Segundo - Encino - Gardena - Glendale - Granada Hills - Hacienda Heights – Harbor City - Hawaiian Gardens - Hawthorne - Hermosa Beach - Huntington Park - Inglewood - LA Los Angeles - La Canada Flintridge - La Crescenta - La Habra Heights - La Mirada - La Puente – La Verne - Lawndale – Long Beach – Lynwood - Malibu - Manhattan Beach - Marina del Rey - Maywood - Mission Hills - Monrovia - Montebello – Monterey Park - Montrose - Newhall - North Hills - North Hollywood - Northridge - Norwalk - Pacific Palisades – Pacoima - Palmdale - Palos Verdes - Panorama City - Paramount - Pasadena - Pearblossom - Pico Rivera - Playa del Rey – Playa Vista - Pomona - Rancho P.V. - Redondo Beach - Reseda - Rosemead - Rowland Heights - San Dimas - San Fernando – San Gabriel - San Marino - San Pedro - Santa Clarita - Santa Fe Springs - Santa Monica - Sherman Oaks - Sierra Madre – Signal Hill - South Gate - South Pasadena - Stevenson Ranch - Studio City - Sun Valley - Sunland - Sylmar - Tarzana – Temple City - Topanga - Torrance - Valencia - Valley Village - Van Nuys - Venice - Walnut - West Covina - West Hills – West Hollywood/LA Los Angeles - Westlake Village - Whittier - Wilmington - Winnetka - Woodland Hills .

Stretch IRA, Ed Slott, Ed Slott Stretch IRA, Roth IRA, IRA Rollover, Multi Generational IRA ORANGE COUNTY:

Aliso Viejo – Anaheim – Anaheim Hills – Balboa Island – Brea – Buena Park - Capistrano Beach – Corona del Mar – Costa Mesa – Cypress – Dana Point – Foothill Ranch - Fountain Valley – Fullerton – Garden Grove – Huntington Beach – Irvine – La Habra – La Palma - Ladera Ranch – Laguna Beach – Laguna Hills – Laguna Niguel – Laguna Woods – Lake Forest - Los Alamitos – Midway City – Mission Viejo – Newport Beach – Newport Coast – Orange – Placentia – Rancho St. Margarita – San Clemente – San Juan Capistrano – Santa Ana – Seal Beach – Silverado – Stanton – Sunset Beach – Surfside – Trabuco Canyon – Tustin – Villa Park – Westminster – Yorba Linda .

Stretch IRA, Ed Slott, Ed Slott Stretch IRA, Roth IRA, IRA Rollover, Multi Generational IRA RIVERSIDE COUNTY :

Aguanga – Anza – Banning – Beaumont – Blythe – Cabazon – Calimesa – Canyon Lake – Cathedral City – Coachella – Corona – Desert Center – Desert Hot Springs – Hemet – Homeland – Idyllwild, Indian Wells – Indio – La Quinta – Lake Elsinore – Mecca – Menifee – Mira Loma – Moreno Valley, Mountain Center – Murrieta – Norco – North Palm Springs – Nuevo, Palm Desert – Palm Springs, Perris – Rancho Mirage – Riverside – San Jacinto – Sun City – Temecula – Thermal - Thousand Palms – White Water – Wildomar – Winchester .

Stretch IRA, Ed Slott, Ed Slott Stretch IRA, Roth IRA, IRA Rollover, Multi Generational IRA SAN BERNARDINO COUNTY :

Adelanto – Angeles Oaks – Apple Valley – Barstow – Big Bear City – Big Bear Lake – Bloomington, Blue Jay – Cedar Glen – Cedarpines Park – Chino – Chino Hills – Colton – Crest Park – Crestline, Daggett – Fawnskin – Fontana – Forest Falls – Grand Terrace – Green Valley Lake – Helendale – Hesperia – Highlands – Hinkley – Joshua Tree – Lake Arrowhead – Landers – Loma Linda - Lucerne Valley – Lytle Creek – Mentone – Montclair – Morongo Valley – Needles - Newberry Springs – Ontario – Oro Grande – Phelan – Pinon Hills – Pioneertown - Rancho Cucamonga – Redlands – Redlands – Rialto – Rim Forest – Running Springs - San Bernardino – Sky Forest – Sugarloaf – Trona – Twentynine Palms – Twin Peaks – Upland, Victorville – Wrightwood – Yermo – Yucaipa – Yucca Valley .

Stretch IRA, Ed Slott, Ed Slott Stretch IRA, Roth IRA, IRA Rollover, Multi Generational IRA SAN DIEGO COUNTY :

Alpine – Bay Park – Bonita – Bonsall – Borrego Springs – Boulevard – Campo – Carlsbad - Chula Vista – Clairemont – College Grove – Coronado - Del Mar – Descanso – Downtown – Dulzura, East San Diego – El Cajon – Encanto – Encinitas – Escondido – Fallbrook – Grantville – Hillcrest, Imperial Beach – Jacumba – Jamul – Julian – La Jolla – La Mesa – Lakeside – Lemon Grove - Linda Vista – Logan Heights – Mission Village – National City – Normal Heights – North City West, North Park – Ocean Beach – Oceanside – Pacific Beach – Palomar Mtn – Paradise Hills - Pauma Valley – Pine Valley – Point Loma – Potrero – Poway – Ramona – Ranchita - Rancho Bernardo – Rancho Penasquitos – Rancho Santa Fe - San Carlos – San Diego - San Marcos – San Ysidro – Santa Ysabel – Santee – Scripps Ranch – Solana Beach - South San Diego – Spring Valley - Spring Valley – Tierrasanta – University City – Valley Center, Vista – Warner Springs .

Stretch IRA, Ed Slott, Ed Slott Stretch IRA, Roth IRA, IRA Rollover, Multi Generational IRA VENTURA COUNTY :

Bell Canyon – Camarillo – Fillmore – Moorpark – Newbury Park – Oak Park – Oak View – Ojai Oxnard – Piru – Port Hueneme – Santa Paula – Simi Valley – Somis – Thousand Oaks – Ventura Westlake Village .

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Saturday, July 31, 2010 | Posted in Featured

Tax Planning For A Financially Secure Retirement

The one thing that is likely to be important, but overlooked, during the entire process of your pre-retirement planning, is tax-planning for a financially secure retirement. It is easy to save on the taxes and to enhance your total retirement income, simply by keeping informed, doing a little judicious research, and taking the right steps.

  • Consider a rollover of retirement funds from an IRA to a Roth IRA
  • Defer income or accelerate deductions to qualify for the Roth IRA conversion
  • Consider a rollover employer stocks and bonds to IRA
  • Calculate the tax payable on lump sum distribution from the retirement plan
  • Maximize tax deferral through various distribution methods for your IRA and annuities
  • Take the required minimum distributions from your IRA in lowest tax years
  • Avoid penalty tax on the distributions from your IRAs
  • Use disability insurance premiums to maximize the non-taxable part of disability benefits
  • Create separate IRA accounts for beneficiaries to maximize tax deferrals
  • Reduces or eliminate federal estate taxes on IRA benefits
  • Use charitable beneficiary designations to eliminate taxes on IRA benefits

The various strategies for tax-planning for a financially secure retirement, some of which are explored below, are fairly simple, and can make a substantial difference to your finances in your retirement. For example:

You can avail quite a solid long-term tax saving if you transfer funds from a traditional IRA to a Roth IRA. You can save on taxes because you are in a lower tax bracket while making the transfer than the point where you would withdraw the funds. You can also transfer high-income assets to the Roth IRA, or pass your IRA funds to your heirs if there is a lot remaining after you die.

In addition, you can gain long-term tax savings due to tax rate differential. Consider making the transfer from IRA to Roth IRA in the particular year when you have a tax loss or fit into a low tax bracket, for some reason. Although the amount transferred, or a part of it, is taxable income, it can be offset against your tax losses.

Alternatively, you may have to pay taxes on the funds you transfer at lower tax rates than those that will apply to future distributions from the IRA, giving you substantial long-term tax savings using the tax rate differential and the tax-free distribution of earnings from the Roth IRA.

Long-term tax savings can also be accumulated by transferring high income assets. Regular IRAs generally have assets that may have a high income potential. Transfer those assets to the Roth IRAs. Even if you have to borrow money to pay the tax on the transfer, the rate of earnings from the transferred assets is higher, than the interest rate on your loan, so there will be a substantial long-term tax saving.

Borrowing from a home equity line of credit can add to your savings, since it qualifies for deductions on the interest you pay on the loan.

You can also use low-yielding liquid funds for paying the tax on the transfer to the Roth IRA.

If you don’t use your IRA funds during retirement, transfer them to a Roth IRA, before your heirs inherit it. The advantage would come from the fact that Roth IRAs do not have to make distributions during your lifetime, while traditional IRAs make minimum distributions when you reach the age of 70 ½. Transferring to a Roth IRA avoids the tax you would pay on distributions.

Do some research, get some help, and take the right steps for tax-planning for a financially secure retirement.

For your free consultation, contact Mike Habib at 1-877-95-IRAMD (877-954-7263)

Tax planning, IRA Help, retirement planning, financial planning in LOS ANGELES COUNTY:

Acton - Agoura Hills - Alhambra - Altadena - Arcadia - Artesia - Avalon - Azusa - Baldwin Park - Bell - Bellflower - Beverly Hills - Burbank - Calabasas - Canoga Park - Canyon Country - Carson - Castaic - Cerritos - Chatsworth – City of Industry -Claremont - Compton - Covina - Culver City - Diamond Bar - Downey - Duarte - El Monte – South, - El Segundo - Encino - Gardena - Glendale - Granada Hills - Hacienda Heights – Harbor City - Hawaiian Gardens - Hawthorne - Hermosa Beach - Huntington Park - Inglewood - LA Los Angeles - La Canada Flintridge - La Crescenta - La Habra Heights - La Mirada - La Puente – La Verne - Lawndale – Long Beach – Lynwood - Malibu - Manhattan Beach - Marina del Rey - Maywood - Mission Hills - Monrovia - Montebello – Monterey Park - Montrose - Newhall - North Hills - North Hollywood - Northridge - Norwalk - Pacific Palisades – Pacoima - Palmdale - Palos Verdes - Panorama City - Paramount - Pasadena - Pearblossom - Pico Rivera - Playa del Rey – Playa Vista - Pomona - Rancho P.V. - Redondo Beach - Reseda - Rosemead - Rowland Heights - San Dimas - San Fernando – San Gabriel - San Marino - San Pedro - Santa Clarita - Santa Fe Springs - Santa Monica - Sherman Oaks - Sierra Madre – Signal Hill - South Gate - South Pasadena - Stevenson Ranch - Studio City - Sun Valley - Sunland - Sylmar - Tarzana – Temple City - Topanga - Torrance - Valencia - Valley Village - Van Nuys - Venice - Walnut - West Covina - West Hills – West Hollywood/LA Los Angeles - Westlake Village - Whittier - Wilmington - Winnetka - Woodland Hills .

Tax planning, IRA Help, retirement planning, financial planning in ORANGE COUNTY:

Aliso Viejo – Anaheim – Anaheim Hills – Balboa Island – Brea – Buena Park - Capistrano Beach – Corona del Mar – Costa Mesa – Cypress – Dana Point – Foothill Ranch - Fountain Valley – Fullerton – Garden Grove – Huntington Beach – Irvine – La Habra – La Palma - Ladera Ranch – Laguna Beach – Laguna Hills – Laguna Niguel – Laguna Woods – Lake Forest - Los Alamitos – Midway City – Mission Viejo – Newport Beach – Newport Coast – Orange – Placentia – Rancho St. Margarita – San Clemente – San Juan Capistrano – Santa Ana – Seal Beach – Silverado – Stanton – Sunset Beach – Surfside – Trabuco Canyon – Tustin – Villa Park – Westminster – Yorba Linda .

Tax planning, IRA Help, retirement planning, financial planning in RIVERSIDE COUNTY :

Aguanga – Anza – Banning – Beaumont – Blythe – Cabazon – Calimesa – Canyon Lake – Cathedral City – Coachella – Corona – Desert Center – Desert Hot Springs – Hemet – Homeland – Idyllwild, Indian Wells – Indio – La Quinta – Lake Elsinore – Mecca – Menifee – Mira Loma – Moreno Valley, Mountain Center – Murrieta – Norco – North Palm Springs – Nuevo, Palm Desert – Palm Springs, Perris – Rancho Mirage – Riverside – San Jacinto – Sun City – Temecula – Thermal - Thousand Palms – White Water – Wildomar – Winchester .

Tax planning, IRA Help, retirement planning, financial planning in SAN BERNARDINO COUNTY :

Adelanto – Angeles Oaks – Apple Valley – Barstow – Big Bear City – Big Bear Lake – Bloomington, Blue Jay – Cedar Glen – Cedarpines Park – Chino – Chino Hills – Colton – Crest Park – Crestline, Daggett – Fawnskin – Fontana – Forest Falls – Grand Terrace – Green Valley Lake – Helendale – Hesperia – Highlands – Hinkley – Joshua Tree – Lake Arrowhead – Landers – Loma Linda - Lucerne Valley – Lytle Creek – Mentone – Montclair – Morongo Valley – Needles - Newberry Springs – Ontario – Oro Grande – Phelan – Pinon Hills – Pioneertown - Rancho Cucamonga – Redlands – Redlands – Rialto – Rim Forest – Running Springs - San Bernardino – Sky Forest – Sugarloaf – Trona – Twentynine Palms – Twin Peaks – Upland, Victorville – Wrightwood – Yermo – Yucaipa – Yucca Valley .

Tax planning, IRA Help, retirement planning, financial planning in SAN DIEGO COUNTY :

Alpine – Bay Park – Bonita – Bonsall – Borrego Springs – Boulevard – Campo – Carlsbad - Chula Vista – Clairemont – College Grove – Coronado - Del Mar – Descanso – Downtown – Dulzura, East San Diego – El Cajon – Encanto – Encinitas – Escondido – Fallbrook – Grantville – Hillcrest, Imperial Beach – Jacumba – Jamul – Julian – La Jolla – La Mesa – Lakeside – Lemon Grove - Linda Vista – Logan Heights – Mission Village – National City – Normal Heights – North City West, North Park – Ocean Beach – Oceanside – Pacific Beach – Palomar Mtn – Paradise Hills - Pauma Valley – Pine Valley – Point Loma – Potrero – Poway – Ramona – Ranchita - Rancho Bernardo – Rancho Penasquitos – Rancho Santa Fe - San Carlos – San Diego - San Marcos – San Ysidro – Santa Ysabel – Santee – Scripps Ranch – Solana Beach - South San Diego – Spring Valley - Spring Valley – Tierrasanta – University City – Valley Center, Vista – Warner Springs .

Tax planning, IRA Help, retirement planning, financial planning in VENTURA COUNTY :

Bell Canyon – Camarillo – Fillmore – Moorpark – Newbury Park – Oak Park – Oak View – Ojai Oxnard – Piru – Port Hueneme – Santa Paula – Simi Valley – Somis – Thousand Oaks – Ventura Westlake Village .

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Saturday, July 31, 2010 | Posted in Promo

Most Common Pre-Retirement Planning Mistakes Baby Boomers Make

Most Common Pre-Retirement Planning Mistakes Baby Boomers Make

Just investing in a retirement plan does not guarantee that you will be financially secure at your retirement. One misstep in planning for your retirement could land the baby boomer in a heap of trouble and push your retirement back by years. To make sure that you are in the perfect position to retire when you want to, and on your own terms, diligent planning is as essential as is avoiding the most common pre-retirement planning mistakes that baby boomers make. If you make these common retirement planning mistakes, you may be headed for trouble.

  • Don’t forget to take complete advantage of your company retirement benefits, and invest as much as you can afford into your company retirement plan.
  • Don’t withdraw money from your retirement plan or you will lose valuable interest which is almost impossible to replace. Some retirement plans do allow hardship withdrawals and loans, but find out about the loss of interest, penalties and early withdrawal fees that may be involved.
  • Don’t forget to actively monitor all your investments, to keep yourself aware of discrepancies and know how well your investments are performing.
  • Don’t rely solely on Social Security to provide your entire retirement income. Back it up with other means of income such as a company pension plan and personal savings.
  • Don’t rely on your partner’s retirement plan. The partner with the retirement plan may die, divorce or have an extended illness that would end up compromising single spouse retirement plans. Make sure each person has a separate retirement plan.
  • Don’t forget to review your retirement plan on a regular basis. Review asset allocation, balances, goals, etc to make the most of your retirement plan.
  • Avoid poor asset allocation.
  • Don’t put all your investments in one stock. Diversify investments so that if one failure does not wipe out your entire retirement fund.
  • Carefully check out your broker and your financial advisor before you trust your retirement savings to them. Research credentials and track records.
  • Don’t rely heavily on your company stocks. Although it is a good way to save for your retirement, diversify your portfolio beyond company stock. A good mix of investments is essential for a good retirement account.
  • Don’t forget to take retirement planning seriously. Your retirement plan should be a priority even when you are young and at the beginning of your career. Starting early allows you to stash away a large investment and might even enable you to retire early. Think about the life style you want after retirement, and don’t postpone planning until after all your current commitments are paid for.
  • Don’t forget to figure out the numbers. There is no set formula to determine how much money you will need. The amount depends on the lifestyle you want, your current capability to save, and your investments. Roughly, to generate an income of $50,000 per year during your retirement, it is necessary to accumulate $1 million in the fund.
  • Don’t send your money to the wrong people. Retirement may seem far away, while college looms large but remember that there are other ways to help finance an education.
  • Don’t spend extra income on paring down mortgage debt. Build a nest egg instead.
  • Don’t forget to insure your savings. Long-term-care insurance is one of the most essential kinds of coverage.

In short, take your retirement planning seriously and keep your goals in sight, always. Don’t make the most common pre-retirement mistakes that baby boomers make.

For your Free Consultation, call Mike Habib at 1-877-95-IRAMD (877-954-7263).

Tax planning, IRA Help, Estate Planning and financial planning serving: Pasadena, Glendale, Los Angeles, Beverly Hills, Long Beach, Irvine, Santa Ana, Riverside, San Bernardino, Ventura, San Diego

Boomers Tax planning, Boomers IRA Help, Boomers Estate Planning and financial planning serving LOS ANGELES COUNTY:

Acton - Agoura Hills - Alhambra - Altadena - Arcadia - Artesia - Avalon - Azusa - Baldwin Park - Bell - Bellflower - Beverly Hills - Burbank - Calabasas - Canoga Park - Canyon Country - Carson - Castaic - Cerritos - Chatsworth – City of Industry -Claremont - Compton - Covina - Culver City - Diamond Bar - Downey - Duarte - El Monte – South, - El Segundo - Encino - Gardena - Glendale - Granada Hills - Hacienda Heights – Harbor City - Hawaiian Gardens - Hawthorne - Hermosa Beach - Huntington Park - Inglewood - LA Los Angeles - La Canada Flintridge - La Crescenta - La Habra Heights - La Mirada - La Puente – La Verne - Lawndale – Long Beach – Lynwood - Malibu - Manhattan Beach - Marina del Rey - Maywood - Mission Hills - Monrovia - Montebello – Monterey Park - Montrose - Newhall - North Hills - North Hollywood - Northridge - Norwalk - Pacific Palisades – Pacoima - Palmdale - Palos Verdes - Panorama City - Paramount - Pasadena - Pearblossom - Pico Rivera - Playa del Rey – Playa Vista - Pomona - Rancho P.V. - Redondo Beach - Reseda - Rosemead - Rowland Heights - San Dimas - San Fernando – San Gabriel - San Marino - San Pedro - Santa Clarita - Santa Fe Springs - Santa Monica - Sherman Oaks - Sierra Madre – Signal Hill - South Gate - South Pasadena - Stevenson Ranch - Studio City - Sun Valley - Sunland - Sylmar - Tarzana – Temple City - Topanga - Torrance - Valencia - Valley Village - Van Nuys - Venice - Walnut - West Covina - West Hills – West Hollywood/LA Los Angeles - Westlake Village - Whittier - Wilmington - Winnetka - Woodland Hills .

Boomers Tax planning, Boomers IRA Help, Boomers Estate Planning and financial planning serving ORANGE COUNTY:

Aliso Viejo – Anaheim – Anaheim Hills – Balboa Island – Brea – Buena Park - Capistrano Beach – Corona del Mar – Costa Mesa – Cypress – Dana Point – Foothill Ranch - Fountain Valley – Fullerton – Garden Grove – Huntington Beach – Irvine – La Habra – La Palma - Ladera Ranch – Laguna Beach – Laguna Hills – Laguna Niguel – Laguna Woods – Lake Forest - Los Alamitos – Midway City – Mission Viejo – Newport Beach – Newport Coast – Orange – Placentia – Rancho St. Margarita – San Clemente – San Juan Capistrano – Santa Ana – Seal Beach – Silverado – Stanton – Sunset Beach – Surfside – Trabuco Canyon – Tustin – Villa Park – Westminster – Yorba Linda .

Boomers Tax planning, Boomers IRA Help, Boomers Estate Planning and financial planning serving RIVERSIDE COUNTY :

Aguanga – Anza – Banning – Beaumont – Blythe – Cabazon – Calimesa – Canyon Lake – Cathedral City – Coachella – Corona – Desert Center – Desert Hot Springs – Hemet – Homeland – Idyllwild, Indian Wells – Indio – La Quinta – Lake Elsinore – Mecca – Menifee – Mira Loma – Moreno Valley, Mountain Center – Murrieta – Norco – North Palm Springs – Nuevo, Palm Desert – Palm Springs, Perris – Rancho Mirage – Riverside – San Jacinto – Sun City – Temecula – Thermal - Thousand Palms – White Water – Wildomar – Winchester .

Boomers Tax planning, Boomers IRA Help, Boomers Estate Planning and financial planning serving SAN BERNARDINO COUNTY :

Adelanto – Angeles Oaks – Apple Valley – Barstow – Big Bear City – Big Bear Lake – Bloomington, Blue Jay – Cedar Glen – Cedarpines Park – Chino – Chino Hills – Colton – Crest Park – Crestline, Daggett – Fawnskin – Fontana – Forest Falls – Grand Terrace – Green Valley Lake – Helendale – Hesperia – Highlands – Hinkley – Joshua Tree – Lake Arrowhead – Landers – Loma Linda - Lucerne Valley – Lytle Creek – Mentone – Montclair – Morongo Valley – Needles - Newberry Springs – Ontario – Oro Grande – Phelan – Pinon Hills – Pioneertown - Rancho Cucamonga – Redlands – Redlands – Rialto – Rim Forest – Running Springs - San Bernardino – Sky Forest – Sugarloaf – Trona – Twentynine Palms – Twin Peaks – Upland, Victorville – Wrightwood – Yermo – Yucaipa – Yucca Valley .

Boomers Tax planning, Boomers IRA Help, Boomers Estate Planning and financial planning serving SAN DIEGO COUNTY :

Alpine – Bay Park – Bonita – Bonsall – Borrego Springs – Boulevard – Campo – Carlsbad - Chula Vista – Clairemont – College Grove – Coronado - Del Mar – Descanso – Downtown – Dulzura, East San Diego – El Cajon – Encanto – Encinitas – Escondido – Fallbrook – Grantville – Hillcrest, Imperial Beach – Jacumba – Jamul – Julian – La Jolla – La Mesa – Lakeside – Lemon Grove - Linda Vista – Logan Heights – Mission Village – National City – Normal Heights – North City West, North Park – Ocean Beach – Oceanside – Pacific Beach – Palomar Mtn – Paradise Hills - Pauma Valley – Pine Valley – Point Loma – Potrero – Poway – Ramona – Ranchita - Rancho Bernardo – Rancho Penasquitos – Rancho Santa Fe - San Carlos – San Diego - San Marcos – San Ysidro – Santa Ysabel – Santee – Scripps Ranch – Solana Beach - South San Diego – Spring Valley - Spring Valley – Tierrasanta – University City – Valley Center, Vista – Warner Springs .

Boomers Tax planning, Boomers IRA Help, Boomers Estate Planning and financial planning serving VENTURA COUNTY :

Bell Canyon – Camarillo – Fillmore – Moorpark – Newbury Park – Oak Park – Oak View – Ojai Oxnard – Piru – Port Hueneme – Santa Paula – Simi Valley – Somis – Thousand Oaks – Ventura Westlake Village .

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Saturday, July 31, 2010 | Posted in Promo

How to select a Financial Advisor

Financial Planning Advisor

Financial planning basics

Financial planning is something that practically every individual has to conduct in order make the most of their income and efficiently allocate some of it for future use. A financial plan takes into consideration current expenses in relation to short-term and long-term savings as in the case of investments.

While financial planning is an important activity, not everyone is adept with it. And many simply do not have the time to sit down and manage their finances at a deeper level than just keeping tabs of their income and expenditures. This is where a financial planning advisor comes into the picture.

Selecting a financial planner

A financial planner is a financial professional trained to help individuals and businesses allocate their income efficiently so they get the most out of it. He provides relevant advice on investments, the most effective ways to save money, protect the investment choices and get better returns.

The thing about financial services is that there are no educational requirements or certifications – and this is why many people can just call themselves a “financial advisor” even if they have zero experience.  If you’re going to seek the assistance of somebody for organizing your finances, it’s best to make sure that you’re really working with someone who knows what he’s doing.

A good and reliable financial planning advisor must have a license that bears certification for helping his clients. When selecting a financial advisor, you need to go over your candidate’s credentials to make sure he’s the best qualified for the job.

Experience is also important. You want to work with a financial planning advisor who has been in service for a long time. This means that he is adept at providing financial advice. It also pays to inquire about the type of services that he offers and, of course, how much he charges for his services.

You want to know how the financial planner expects to be compensated. There are financial planners who charge a flat rate or an asset-based one for their services. Others do not charge separate fees and are typically compensated according to commissions through the sale of insurance and investment products. Others are compensated through both ways.

At IRA MD, we provide our clients both financial & tax planning, most financial advisors ask their clients to check their investment choices with their tax advisor, but the client almost never does! Many investors loose a large portion of their investment account because of bad financial advice that was not tax efficient resulting in a financial disaster.  After all, you want your finances handled by someone who can take care of them properly through financial and tax planning together.

Planning services: Why work with a tax and financial planner?

It would serve your best purposes if you hired a financial planning advisor who does both financial planning and tax planning. Investments and savings are governed by the most complex tax laws. The best way to get the most out of your investment and financial moves is by working with somebody who also understands the taxation side of these decisions.

Financial planners who know how to factor in the tax benefits of every investment decision can help individuals make the right choices. Enrolled Agents, for instance, can make for great financial planners because they can also help you with your taxes. They can help you prepare your income tax returns according to your investment  portfolio to ensure that you’re making the most out the tax shelter features of certain financial decisions such as investing in annuities or creating a retirement plan.

Financial planner, Financial advisor, financial planning company, financial planning firm LOS ANGELES COUNTY:

Acton - Agoura Hills - Alhambra - Altadena - Arcadia - Artesia - Avalon - Azusa - Baldwin Park - Bell - Bellflower - Beverly Hills - Burbank - Calabasas - Canoga Park - Canyon Country - Carson - Castaic - Cerritos - Chatsworth – City of Industry -Claremont - Compton - Covina - Culver City - Diamond Bar - Downey - Duarte - El Monte – South, - El Segundo - Encino - Gardena - Glendale - Granada Hills - Hacienda Heights – Harbor City - Hawaiian Gardens - Hawthorne - Hermosa Beach - Huntington Park - Inglewood - LA Los Angeles - La Canada Flintridge - La Crescenta - La Habra Heights - La Mirada - La Puente – La Verne - Lawndale – Long Beach – Lynwood - Malibu - Manhattan Beach - Marina del Rey - Maywood - Mission Hills - Monrovia - Montebello – Monterey Park - Montrose - Newhall - North Hills - North Hollywood - Northridge - Norwalk - Pacific Palisades – Pacoima - Palmdale - Palos Verdes - Panorama City - Paramount - Pasadena - Pearblossom - Pico Rivera - Playa del Rey – Playa Vista - Pomona - Rancho P.V. - Redondo Beach - Reseda - Rosemead - Rowland Heights - San Dimas - San Fernando – San Gabriel - San Marino - San Pedro - Santa Clarita - Santa Fe Springs - Santa Monica - Sherman Oaks - Sierra Madre – Signal Hill - South Gate - South Pasadena - Stevenson Ranch - Studio City - Sun Valley - Sunland - Sylmar - Tarzana – Temple City - Topanga - Torrance - Valencia - Valley Village - Van Nuys - Venice - Walnut - West Covina - West Hills – West Hollywood/LA Los Angeles - Westlake Village - Whittier - Wilmington - Winnetka - Woodland Hills .

Financial planner, Financial advisor, financial planning company, financial planning firm ORANGE COUNTY:

Aliso Viejo – Anaheim – Anaheim Hills – Balboa Island – Brea – Buena Park - Capistrano Beach – Corona del Mar – Costa Mesa – Cypress – Dana Point – Foothill Ranch - Fountain Valley – Fullerton – Garden Grove – Huntington Beach – Irvine – La Habra – La Palma - Ladera Ranch – Laguna Beach – Laguna Hills – Laguna Niguel – Laguna Woods – Lake Forest - Los Alamitos – Midway City – Mission Viejo – Newport Beach – Newport Coast – Orange – Placentia – Rancho St. Margarita – San Clemente – San Juan Capistrano – Santa Ana – Seal Beach – Silverado – Stanton – Sunset Beach – Surfside – Trabuco Canyon – Tustin – Villa Park – Westminster – Yorba Linda .

Financial planner, Financial advisor, financial planning company, financial planning firm RIVERSIDE COUNTY :

Aguanga – Anza – Banning – Beaumont – Blythe – Cabazon – Calimesa – Canyon Lake – Cathedral City – Coachella – Corona – Desert Center – Desert Hot Springs – Hemet – Homeland – Idyllwild, Indian Wells – Indio – La Quinta – Lake Elsinore – Mecca – Menifee – Mira Loma – Moreno Valley, Mountain Center – Murrieta – Norco – North Palm Springs – Nuevo, Palm Desert – Palm Springs, Perris – Rancho Mirage – Riverside – San Jacinto – Sun City – Temecula – Thermal - Thousand Palms – White Water – Wildomar – Winchester .

Financial planner, Financial advisor, financial planning company, financial planning firm SAN BERNARDINO COUNTY :

Adelanto – Angeles Oaks – Apple Valley – Barstow – Big Bear City – Big Bear Lake – Bloomington, Blue Jay – Cedar Glen – Cedarpines Park – Chino – Chino Hills – Colton – Crest Park – Crestline, Daggett – Fawnskin – Fontana – Forest Falls – Grand Terrace – Green Valley Lake – Helendale – Hesperia – Highlands – Hinkley – Joshua Tree – Lake Arrowhead – Landers – Loma Linda - Lucerne Valley – Lytle Creek – Mentone – Montclair – Morongo Valley – Needles - Newberry Springs – Ontario – Oro Grande – Phelan – Pinon Hills – Pioneertown - Rancho Cucamonga – Redlands – Redlands – Rialto – Rim Forest – Running Springs - San Bernardino – Sky Forest – Sugarloaf – Trona – Twentynine Palms – Twin Peaks – Upland, Victorville – Wrightwood – Yermo – Yucaipa – Yucca Valley .

Financial planner, Financial advisor, financial planning company, financial planning firm SAN DIEGO COUNTY :

Alpine – Bay Park – Bonita – Bonsall – Borrego Springs – Boulevard – Campo – Carlsbad - Chula Vista – Clairemont – College Grove – Coronado - Del Mar – Descanso – Downtown – Dulzura, East San Diego – El Cajon – Encanto – Encinitas – Escondido – Fallbrook – Grantville – Hillcrest, Imperial Beach – Jacumba – Jamul – Julian – La Jolla – La Mesa – Lakeside – Lemon Grove - Linda Vista – Logan Heights – Mission Village – National City – Normal Heights – North City West, North Park – Ocean Beach – Oceanside – Pacific Beach – Palomar Mtn – Paradise Hills - Pauma Valley – Pine Valley – Point Loma – Potrero – Poway – Ramona – Ranchita - Rancho Bernardo – Rancho Penasquitos – Rancho Santa Fe - San Carlos – San Diego - San Marcos – San Ysidro – Santa Ysabel – Santee – Scripps Ranch – Solana Beach - South San Diego – Spring Valley - Spring Valley – Tierrasanta – University City – Valley Center, Vista – Warner Springs .

Financial planner, Financial advisor, financial planning company, financial planning firm VENTURA COUNTY :

Bell Canyon – Camarillo – Fillmore – Moorpark – Newbury Park – Oak Park – Oak View – Ojai Oxnard – Piru – Port Hueneme – Santa Paula – Simi Valley – Somis – Thousand Oaks – Ventura Westlake Village .

 

 

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Saturday, July 31, 2010 | Posted in Promo

Estate Tax Planning

Estate Tax Planning

What is an estate tax? Estate tax is a tax on your estate assessed after your death. When you die, your assets and any properties you leave behind are part of your estate. The IRS taxes your estate before the assets can even be transferred to your heirs and loved ones. The tax bill will depend on when you dies and the size of your estate. In 2009 the exclusion amount is $3.5 million, in 2010 no estate taxes will be due, in 2011 estate taxes will be due on any estate worth more than $1 million. The tax rate ranges from 41% on estates over $1 million to as high as 60% on estates between $10 million to $17,184,000, estates over $17,184,000 would be taxed at 55%. That’s exactly why you need estate tax planning!

What are the goals of estate tax planning? There are 3 main reasons to seek estate planning:

1. To lower the value if your gross estate,

2. To maintain the state’s eligibility for as many credits as available,

3. To maximize the deductions your estate will be eligible for.

Consulting a competent estate tax planner can make sure that the strategies you use will actually work when your taxes are assessed to your estate.

Life insurance planning. Life insurance should be a vital and integral part of your estate tax planning. Many families with closely held businesses utilize life insurance proceeds to pay any gift or estate taxes due to the retransfer of the business so they won’t be forced to sell the business when one of the owners die.

Why is life insurance so important? The first thing your financial advisor will usually work on is to review your life insurance policies. This is so critical for  a number of reasons.

Estate Liquidity: all estates, regardless of their size, will need cash to pay any taxes, administrative expenses and any debt left by the decedent. Cash will also be much needed to keep the family business operating during probate. Life insurance quickly fills any cash gap!

Replacement of income: life insurance proceeds can fund a much needed income stream for your family after your death.

Wealth accumulation: life insurance can significantly increase your family’s wealth after your death.

Debt retirement: major debts such as mortgages and other debts can be retired using life insurance proceed so the family will not be forced to move out of their home or make unwise decisions as a result of your death.

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement LOS ANGELES COUNTY:

Acton - Agoura Hills - Alhambra - Altadena - Arcadia - Artesia - Avalon - Azusa - Baldwin Park - Bell - Bellflower - Beverly Hills - Burbank - Calabasas - Canoga Park - Canyon Country - Carson - Castaic - Cerritos - Chatsworth – City of Industry -Claremont - Compton - Covina - Culver City - Diamond Bar - Downey - Duarte - El Monte – South, - El Segundo - Encino - Gardena - Glendale - Granada Hills - Hacienda Heights – Harbor City - Hawaiian Gardens - Hawthorne - Hermosa Beach - Huntington Park - Inglewood - LA Los Angeles - La Canada Flintridge - La Crescenta - La Habra Heights - La Mirada - La Puente – La Verne - Lawndale – Long Beach – Lynwood - Malibu - Manhattan Beach - Marina del Rey - Maywood - Mission Hills - Monrovia - Montebello – Monterey Park - Montrose - Newhall - North Hills - North Hollywood - Northridge - Norwalk - Pacific Palisades – Pacoima - Palmdale - Palos Verdes - Panorama City - Paramount - Pasadena - Pearblossom - Pico Rivera - Playa del Rey – Playa Vista - Pomona - Rancho P.V. - Redondo Beach - Reseda - Rosemead - Rowland Heights - San Dimas - San Fernando – San Gabriel - San Marino - San Pedro - Santa Clarita - Santa Fe Springs - Santa Monica - Sherman Oaks - Sierra Madre – Signal Hill - South Gate - South Pasadena - Stevenson Ranch - Studio City - Sun Valley - Sunland - Sylmar - Tarzana – Temple City - Topanga - Torrance - Valencia - Valley Village - Van Nuys - Venice - Walnut - West Covina - West Hills – West Hollywood/LA Los Angeles - Westlake Village - Whittier - Wilmington - Winnetka - Woodland Hills .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement ORANGE COUNTY:

Aliso Viejo – Anaheim – Anaheim Hills – Balboa Island – Brea – Buena Park - Capistrano Beach – Corona del Mar – Costa Mesa – Cypress – Dana Point – Foothill Ranch - Fountain Valley – Fullerton – Garden Grove – Huntington Beach – Irvine – La Habra – La Palma - Ladera Ranch – Laguna Beach – Laguna Hills – Laguna Niguel – Laguna Woods – Lake Forest - Los Alamitos – Midway City – Mission Viejo – Newport Beach – Newport Coast – Orange – Placentia – Rancho St. Margarita – San Clemente – San Juan Capistrano – Santa Ana – Seal Beach – Silverado – Stanton – Sunset Beach – Surfside – Trabuco Canyon – Tustin – Villa Park – Westminster – Yorba Linda .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement RIVERSIDE COUNTY :

Aguanga – Anza – Banning – Beaumont – Blythe – Cabazon – Calimesa – Canyon Lake – Cathedral City – Coachella – Corona – Desert Center – Desert Hot Springs – Hemet – Homeland – Idyllwild, Indian Wells – Indio – La Quinta – Lake Elsinore – Mecca – Menifee – Mira Loma – Moreno Valley, Mountain Center – Murrieta – Norco – North Palm Springs – Nuevo, Palm Desert – Palm Springs, Perris – Rancho Mirage – Riverside – San Jacinto – Sun City – Temecula – Thermal - Thousand Palms – White Water – Wildomar – Winchester .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement SAN BERNARDINO COUNTY :

Adelanto – Angeles Oaks – Apple Valley – Barstow – Big Bear City – Big Bear Lake – Bloomington, Blue Jay – Cedar Glen – Cedarpines Park – Chino – Chino Hills – Colton – Crest Park – Crestline, Daggett – Fawnskin – Fontana – Forest Falls – Grand Terrace – Green Valley Lake – Helendale – Hesperia – Highlands – Hinkley – Joshua Tree – Lake Arrowhead – Landers – Loma Linda - Lucerne Valley – Lytle Creek – Mentone – Montclair – Morongo Valley – Needles - Newberry Springs – Ontario – Oro Grande – Phelan – Pinon Hills – Pioneertown - Rancho Cucamonga – Redlands – Redlands – Rialto – Rim Forest – Running Springs - San Bernardino – Sky Forest – Sugarloaf – Trona – Twentynine Palms – Twin Peaks – Upland, Victorville – Wrightwood – Yermo – Yucaipa – Yucca Valley .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement SAN DIEGO COUNTY :

Alpine – Bay Park – Bonita – Bonsall – Borrego Springs – Boulevard – Campo – Carlsbad - Chula Vista – Clairemont – College Grove – Coronado - Del Mar – Descanso – Downtown – Dulzura, East San Diego – El Cajon – Encanto – Encinitas – Escondido – Fallbrook – Grantville – Hillcrest, Imperial Beach – Jacumba – Jamul – Julian – La Jolla – La Mesa – Lakeside – Lemon Grove - Linda Vista – Logan Heights – Mission Village – National City – Normal Heights – North City West, North Park – Ocean Beach – Oceanside – Pacific Beach – Palomar Mtn – Paradise Hills - Pauma Valley – Pine Valley – Point Loma – Potrero – Poway – Ramona – Ranchita - Rancho Bernardo – Rancho Penasquitos – Rancho Santa Fe - San Carlos – San Diego - San Marcos – San Ysidro – Santa Ysabel – Santee – Scripps Ranch – Solana Beach - South San Diego – Spring Valley - Spring Valley – Tierrasanta – University City – Valley Center, Vista – Warner Springs .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement VENTURA COUNTY :

Bell Canyon – Camarillo – Fillmore – Moorpark – Newbury Park – Oak Park – Oak View – Ojai Oxnard – Piru – Port Hueneme – Santa Paula – Simi Valley – Somis – Thousand Oaks – Ventura Westlake Village .

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