State of New Jersey

Notary Public Commission: 

Notary Public (Active)


State of New Jersey Department of Banking and Insurance Licensed Producer: Title, Life, Health 


Title Insurance Terms:


Title - The evidence of right which a person has to the ownership and possession of land. Commonly considered as a history of rights. 


Owner's Title Policy -  A policy of title insurance, which insures a named owner against loss by reason of defects, liens and encumbrances not excepted to in the policy or unmarketability of the title. The company also agrees to defend covered claims made against the title.


Encumbrance - A lien, liability or charge upon a parcel of land.


Chain of Title - A term applied to the past series of transactions and documents affecting the title to a particular parcel of land.


(from the Real Estate Dictionary provided by Old Republic Title Insurance Group  12/14)





*The opinions expressed on this website are strictly those of Malleo Financial Services, LLC and not those of any of our affiliates.


*Malleo Financial Services LLC cannot and

will not give any tax or legal advice.



The Compelling Story of IRA's

Ideally, a long-term retirement savings plan is comprised of 3 basic components:

  • Personal Savings
  • Company Pensions
  • Social Security

With the probability of Social Security becoming bankrupt within the next four decades (just read your Social Security statement if you don’t believe me), and company pension plans quickly becoming a thing of the past, personal savings must be maximized in order for us to survive in retirement.  Worse yet, most Americans aren’t saving!  In a March 2013 survey from the Employee Benefits Institute: “Retirement savings may be taking a back seat to more immediate financial concerns: Just 2 percent of workers and 4 percent of retirees identify saving or planning for retirement as the most pressing financial issue facing most Americans today.”  Clearly, we have a problem here.


The term “Personal Savings" includes both contributions to your company’s 401(k) plan (excluding matches as they vary by employer), and contributions to your personal IRA.  This article is an introduction of how IRAs work, and how they can be of benefit to you.

"IRA" stands for “Individual Retirement Arrangements” according to IRS publication 590, but we know them better as “Individual Retirement Accounts”.  An IRA is a tax-sheltered account that allows your money to accumulate without paying taxes.  All IRAs fall into two basic camps:  Traditional IRAs and Roth IRAs.  Illustrated below are the primary differences between them.


Traditional IRA

Roth IRA



Anyone under age 70½ with earned income.  Non-working spouses are eligible.

Anyone with earned income.

Non-working spouses are eligible.


Tax Deductible






Distributions taxed as ordinary income at age 59½ or later. Distributions prior to age 59½ are subject to a 10% penalty, with exceptions.

Distributions are tax-free & penalty -

free if held for at least yrs and

taken at age 59½ or later.



Must begin by age 70½

No deadline for distributions


For tax year 2016 the maximum allowable contribution for an individual to invest in an IRA is $5,500 per year or $458.33 a month.  For people age 50 and older the maximum annual limit is $6,500 per year or $541.66 a month ($5,500 + an additional $1,000 from the "catch-up" provision).  Mutual Funds are the investment vehicle of choice for most IRA's, primarily for their broad diversification and professional management.


The following is an example of how an IRA can be of benefit to you:

Let’s say that both you and your spouse each invest $5,500 a year ($11,000 total) into a diversified “Growth” oriented mutual fund portfolio.  "Growth" portfolios have both stock funds and bond funds, but are weighted more towards stocks. An example would be: 75% stocks & 25% bonds.  A realistic average annual rate of return for a diversified "Growth" portfolio over the long–term (10 years+) would be at around 9% annually.


See the chart below for a historic rate of return comparison: 


In 30 years (averaging 9%) your combined $11,000 annual investment would grow to $1,634,330 ($817,165 each) in your IRAs (tax-deferred accounts), as opposed to $1,060,540 ($530,270 each) in voluntary / Non-IRA (taxable) accounts.  By the way, those figures also assume that neither one of you took advantage of the extra $1,000 catch-up provision when you each turned 50 years old.  If your incomes allow you to qualify for Roth IRAs, then come retirement time your $1.6 million fortune could be received tax-free!  Once retired and with a more conservative allocation, even at a mere 4% annual withdrawal rate you and your spouse could be looking at a combined $100,590 tax-free (if Roth) annual income for the next 25 years. Tack on income received from any employer sponsored retirement plans or other investments, and you can have a very comfortable retirement.
With regards to Traditional IRAs, while some people with exceptionally high incomes may not qualify for the tax deduction, everyone qualifies for the tax-deferred growth. 

Contrary to popular belief, you don’t need to invest a lot of money to get a retirement plan started.  Most investment companies will allow you to open an IRA for a lump sum of about $1,000, or for as little as $50 a month.  The most important thing of all however, is to get started!



For a free consultation, please contact us for an appointment.



 *This blog is strictly the opinion of Michael A. Malleo and not those of

ASH Brokerage Corp., Quest Capital Strategies, Inc., nor any of our affiliates.

Malleo Financial Services LLC cannot and will not give any specific tax or legal advice.

Please consult your tax professional or legal professional for such advice.


*Investment decisions should be based on an individual’s own goals, time horizon, and tolerance for risk. Examples provided are for illustrative purposes only and are not intended to be reflective of results you can expect to achieve.  Past performance is no guarantee of future results. Neither asset allocation nor diversification ensures a profit or guarantees against a loss.