We frequently remind our readers to budge carefully and save for retirement, because planning for the future is indeed important. But today, let’s talk about a different decision you will need to make once you’ve reached retirement: How do you plan for distributions from your retirement account(s), in a way that best benefits you? At that point your focus shifts from saving money, to withdrawing and using it. You might already know that retirement accounts typically allow you to begin distributions at age 59 ½. However, most people are still working at that age, and in most cases should leave
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Ask yourself this question: “What type of people are able to create long-term wealth?” The answer might seem obvious to you, and it does indeed appear to be a matter of common sense. Most people will answer something along the lines of the following statement: “People who earn higher incomes are more able to save and prepare for the future”. That’s half true. “Able”, yes. But do higher earners actually accomplish that goal? Consider this fact: Seventy-eight percent of NFL players file for bankruptcy or experience serious financial crises at some point, and they are certainly not the only high
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For many of us, income taxes eat up a significant portion of our budgets and the more money you make, the higher your taxes in most cases. This can present a dilemma when you’re planning for retirement, and need to save as much of your income as possible. That’s why tax planning should be fully integrated into your overall financial plan. Luckily, there are ways to hedge against income taxes and lower your overall burden to some degree. Make sure you’re evaluating all of your potential opportunities for savings. We’ve included some of the more common ones below. Identify your
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Hard work and diligent planning have paid off, and you’re getting ready to retire. If you’re feeling secure and confident, we congratulate you. But we also feel it’s our duty to warn you of the many theoretical scenarios that can quickly undermine that confidence. Unfortunately, con artists often target retirees, and even if you manage to dodge them, it’s easy to make mistakes. Since prevention is always the best “remedy” for any problem, we recommend that you include these steps in your retirement plan now – before you even retire. Consider a durable power of attorney. A durable power of
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