Will You Have Tax-Advantaged Buckets in Retirement?
You’ll likely have several sources of income in retirement that can be taxed, such as IRA distributions and Social Security benefits. But, do you have any after-tax “buckets” that you can use strategically in retirement to help reduce your tax bill? There may be a few options available to you, so know how they work. How is a Roth IRA Different from a Traditional IRA? Many people contribute pre-tax dollars to a traditional IRA during their working years. When money is distributed, it’s taxed at ordinary income rates. In contrast, a Roth IRA is funded with after-tax dollars. A […]
Why Today’s Retirees Might Fear Running Out of Money
You might have been aiming to save a certain amount for retirement – and maybe you’ve already achieved that goal. But, considering inflation, an unpredictable market, and a lack of guaranteed income once your paycheck stops, you might be reconsidering whether you’ve actually saved enough. There are a few reasons why today’s retirees might fear running out of money and why they need to have a financial plan. Inflation at 40-Year Highs Daily life is arguably the most expensive it’s been in 40 years. April’s year-over-year inflation rate was 8.3%. Gas prices recently hit a new record high of […]
Three Unexpected Taxes in Retirement
When we think of major retirement expenses, we often consider housing, healthcare, and that trip of a lifetime we’ve been dreaming about for years. But, we often fail to consider what could potentially be our biggest expense – taxes. Many of your sources of income in retirement are taxable, so don’t overlook these three unexpected taxes in retirement. Tax on Your Social Security Benefit Although you’ve paid into Social Security your entire working life, your benefit could be taxed, depending on your income. To figure out if your benefit can be taxed, add up your adjusted gross income, nontaxable […]
Why We Could See More Inflation and Market Volatility
As we saw during the COVID-19 pandemic, what happens somewhere halfway around the world can have a major impact on us. Now, the global economy faces new threats as a result of Russia’s invasion of Ukraine, including spiking energy prices, inflation, and a volatile market. Know how you could be affected and what strategies you can pursue to help protect your savings. Are You Protected from Market Corrections? We’ve seen market volatility recently and could see more depending on what happens in Ukraine and what the Federal Reserve does. Oil prices are surging and could continue to rise as […]
Where Will Your Retirement Income Come From?
Once you’ve sold your business, you’ll need to make a lump sum of savings last for the rest of your life. This can be difficult, even for those who already have a substantial amount saved. Retirement can last for decades, and the risk of running out of money is very real, especially if we see high inflation and a volatile market. So what can you do? Let’s start with some potential income sources in retirement: 1. Investment Strategy If you have a Solo 401(k), SIMPLE 401(K), IRA, or other retirement account as a business owner, you’ll need to have a plan to draw down your account in retirement. Distributions from […]
