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Category: Retirement
When To Take Social Security
Financial planners will often advise waiting until age 70 to max out the potential amount of your Social Security checks. This may be a good policy but there are many variables that affect when you should claim. Amassed wealth for retirement, personal health, job security and/or burnout are some of the top reasons people may choose to apply before age 70.
Nervous About Retirement?
‘Mary Dovel, CPA/PFS, managing partner at Telos Family Office in Charlotte, N.C., and a member of the AICPA Personal Financial Planning (PFP) Executive Committee advises that for the best outcomes when planning for retirement, “Clients are much happier when they have clarity and fewer decisions.”’
They recommend following these steps:
Start With an Overview
Consolidate and Automate
Talk About Worst Case Scenarios
Consider Test Runs
Calming nervous clients nearing retirement Read the full article, HERE.
Retirement Mistakes to Avoid
You’ve enjoyed the celebrations and a few days of “sleeping-in,” and now you’re ready to start your retired life. Evan T. Beach from Kipplinger recommends these easy steps to help start your retirement in the right direction and keep it on track for years to come.
Avoid purchasing big ticket items or taking extravagant trips. See if you can actually plan these investments while you are still working in order to preserve retirement funds. It will also keep you from tapping into social security and retirement funds too quickly which can help with your tax rates later in life. Be sure to work with your financial planner to adjust your investment strategy, be careful not to lose touch with former co-workers and other acquaintances, and create a daily schedule for yourself. All of these things are an important part of maintaining an active life in retirement.
Read more here: Five Mistakes to Avoid in Your First Year of Retirement
Retirement Savings Rescue
As the COVID-19 pandemic continues, the IRS has developed procedures for individuals to take early distributions from their retirement plans under Section 2202 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136. The rules to qualify for these disbursements are fairly generous. For more details and to see if you qualify, read this article from The Tax Adviser. Early distributions from retirement plans related to COVID-19
Living Off Your 401K?
Recently unemployed? Considering dipping into your 401K to stay afloat? Here are some options to consider. Fees are waived for withdrawals made from 401K accounts. Taxes must be paid but can be spread over three years. These are some of the most lenient restrictions ever imposed. Even if you decide not take money out of your account, you may want to consider moving your 401K into an IRA. Mark Miller for the New York Times in his article, Lost Your Job but Still Have a 401(k)? Here’s What to Do With It, offers advice and tips on best managing your retirement funds and money for daily living during this turbulent time.
Retirement?
As clients approach the presumed age of retirement, some are beginning to question this expectation. In her article, Why retire? 10 reasons clients should keep working, Ann Marsh for financialplanning.com offers ten valid reasons why you might want to continue working, drawn from money management professionals. One sites this article as well, Voices The worst retirement advice I ever gave. What will you do when the time comes?
Retirement Ready?
Does the thought of retirement make you nervous or are you still in the stage where you’re throwing out all the mail you get from AARP? Peter Finch for the New York Times offers a detailed, five-year plan to help you prepare. Finch explores the process by breaking each year down into easy steps, ranging from calculating self-worth/future needs, to recognizing health insurance options, investigating reverse mortgages, and considering long term care.
Countdown to Retirement: A Five-Year Plan
Grandparent’s Gift
Are you interested in saving money for your grandchildren? David LaMartina for ThinkAdvisor examines this subject in his article, Investing for Grandchildren (There are a few well-established ways advisors can help clients invest in their grandkids futures without putting client’s own retirements at risk.) In this article, he examines best practices for maintaining your own retirement and savings while setting aside specific funds for grandchildren in a variety of ways. Everything from 529 plans to inventive uses of life insurance polices.
The New Pension Plan
With such a variety of retirement plans, many current workers will not have an actual pension. Ann Carrns, for the New York Times suggests a variety of ways to make your savings work for you in her article, No Pension? You Can ‘Pensionize’ Your Savings.
Her top recommendations include working longer, delaying Social Security payments, and, creating a budget for the amounts that you are required to withdraw from your retirement accounts.