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| How to Save for Retirement (Brokerage Account vs IRA) |
| Introduction |
| There are different types of investment vehicles in the U.S., by which you can save for retirement. There is a brokerage account, for example, that is not considered to be a retirement account, but can nevertheless be used to save money for retirement. There are other accounts that are considered to be retirement accounts that are to be used for the purpose of saving money for retirement, such as an IRA or a 401(k). The 401(k) will not be discussed in this article. |
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| Brokerage Account |
A brokerage account is an investment account that permits an investor to purchase and sell different types of stocks, mutual fund, and etc. There is no restriction with respect to contribution amount, nor is there a penalty for withdrawing funds from the account early. A brokerage account is taxable, meaning that an investor will be required to pay taxes on income derived from the account, including dividends and capital gains.
While a brokerage account is not considered to be a retirement account, financial planners can suggest that you open both a brokerage account and a retirement account, such as an IRA, in order to have different vehicles for saving money for retirement.
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| IRA (Traditional IRA and Roth IRA) |
An IRA is a retirement account that has tax benefits. The two primary types of IRAs include the traditional IRA and Roth IRA. Contrary to a brokerage account, an IRA has restrictions on contribution amount as well as a penalty for early withdrawal (although the application of the penalty can differ for a traditional IRA and a Roth IRA.)
A traditional IRA account is tax-deferred, which means that contributions made to the account over the years grow tax-free. When the investor withdraws money from the traditional IRA account at 59 & 1/2 years or older, which is the age at which one can withdraw without penalty from a traditional IRA account, the investor will need to pay taxes on the withdrawal.
A Roth IRA is an account that requires taxes to be paid on contributions made to the account, but withdrawals therefrom are completely tax free. This means that an investor pays taxes each year on any contributions he/she made to the Roth IRA, but withdrawal from the account at retirement will not be taxed.
A Roth IRA is different from the traditional IRA in that a Roth IRA account has income limits, contrary to the traditional IRA. This means that if an investor begins to earn an income over these limits, he/she will no longer be able to make a contribution to his/her Roth IRA account. |
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| Conclusion |
| It is good to know about different types of investment vehicles including retirement accounts, in order to prepare adequately for retirement. |
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| New York Office Opening |
| Attorney Yuka Hongo is pleased to announce the opening of a Hongo Law Office location in New York. Beginning October 1, 2023, the new office will be located at 305 Broadway, Suite 700, New York, NY. Attorney Hongo is licensed to practice law in Hawaii and New York, as well as in California, and the District of Columbia, and is looking forward to extending her services to more New York-based estate planning and estate administration/probate clients. To schedule an appointment with the New York office, call (646) 825-6944 or send a message to yuka.hongo12@gmail.com. |
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| Client Comments |
| "Lawyers in the U.S. can be difficult to talk to at times, but I think people find it easy to talk to Ms. Hongo. I also like the fact that Ms. Hongo follows up with her clients on a timely basis." |
| Sachiko Trillo, Honolulu |
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| "Hongo Tsuji Tax & Consulting, our accounting firm, introduced me to Ms. Hongo. I consulted her with regards to estate planning, and I appreciated the fact that she took care of our documents in a timely manner." |
| K.A., Tokyo |
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| "I appreciated Ms. Hongo's professional expertise and the kind way in which she took care of our matter. I am truly happy that she helped us." |
| Mitsuko Seto, Osaka |
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| "Ms. Hongo not only prepared my trust, but also took care of legal matters involving my company. Her fee is reasonable and she follows up with you in a timely manner." |
| S. Suzuki, Company Owner |
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| "Ms. Hongo took care of our matter in a kind manner. We liked the fact that her office was located in Waikiki, near our home." |
| Sugiyama, Waikiki |
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| "I became a successor to 2 condominiums that my wife owned in Hawaii, after my wife passed away. Ms. Hongo took care of our probate matter in a short timeframe of 1 year. We feel very grateful to her." |
| Shuichi Sakamoto, Nasu |
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| "Our clients were very satisfied with Ms. Hongo's service because she was able to explain matters such as probate in an easy-to-understand manner. Ms. Hongo is someone we can rely on for any matter." |
| Noboru Ohhashi, List Sotheby's, Tokyo |
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| "Given that the U.S. real estate recording process and its pertaining laws differ from those of Japan, and it is difficult to learn about them in English, I appreciated Ms. Hongo being able to explain them to me in an understandable manner. I would like to seek her help in the future for other matters." |
| K. Iwasaki, Honolulu |
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| "Ms. Hongo helped me with the estate planning for my real estate in Hawaii. I was glad she was able to help me during her visit in Japan." |
| S.T., Kawasaki |
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| "It was our long-term goal to prepare a trust for our family. We are now able to take the next step in our lives, as Ms. Hongo applied her proficient bilingual skills to efficiently take care of our matter. We are very grateful for what she did for us." |
| A.P., Honolulu |
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| Hongo Law Office LLLC is proud to have been acknowledged as one of the "Best Probate Attorneys in Honolulu for 2023" by Expertise.com. |
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| Attorney Yuka Hongo has been named a 2023 Elite Lawyer in the area of Estate Planning in Hawaii. The award recognizes attorneys who have displayed a high level of competence in their practice. |
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| You're invited to call or email |
"If you have questions about estate planning and administration, please don't hesitate to call. I'll be glad to hear from you." – Yuka
Call (808) 237-9944 or email yuka.hongo12@gmail.com |
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| Meet Yuka Hongo, Esq. |
| Yuka Hongo is a respected estate planning attorney based in Honolulu, Hawaii. She has practiced law for 10 years and is fluent in both English and Japanese. |
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Practice Areas: Yuka represents clients in matters related to estate planning such as the preparation of trusts, wills, and Transfer on Death Deeds. She also provides a service in the area of estate administration, including probate.
Education: In 2000, Yuka graduated from Oberlin College (Oberlin, OH), where she earned a Bachelor of Arts Degree in Economics and East Asian Studies. In 2004, she graduated from Loyola Law School (Los Angeles, CA), where she earned her Juris Doctor Degree. In 2022, Yuka graduated from Keio University (Tokyo, Japan) where she earned a Master of Laws Degree.
Court Admissions and Bar Memberships: Yuka is a member of the Hawaii, California, the District of Columbia Bar, and New York Bar Associations. Yuka is a member of the International Law Section of the Hawaii State Bar.
Additional Qualifications: Yuka is a Certifying Acceptance Agent who can obtain the ITIN tax number for foreigners in the U.S. In addition, she is a life insurance agent and a licensed notary public in Hawaii. Also, Yuka is fully bilingual in Japanese and English and has in-depth experience including complicated translations working with both languages.
Multicultural Background: Yuka has experience living and working in both the U.S. and Japan and has a thorough understanding of both cultures and the people who live in both countries. In addition, she loves working with people from other multicultural backgrounds, and working on international matters.
Accounting Experience: Yuka worked for the Tokyo office of a prominent U.S. accounting firm for the past number of years and has extensive experience working with tax and legal issues that arise from cross-border transactions.
Educational Presentations: Yuka has presented seminars in Japan relating to Transfer on Death Deeds in Hawaii and trusts in the United States.
Residence & Interests: Yuka lives in Honolulu, Hawaii and is single. She enjoys scoping out new eateries and restaurants. |
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