Now that you’re retired, you’re probably ready to just let loose and let the good times roll. Not so fast though, this isn’t the time to just turn off your brain and forget about any financial knowledge you have had. If you are retired, you likely have a retirement deferment account. You should consider changing the way you have it set up because at a moments notice, they can change the tax laws and you can end up losing quite a bit of money.
Key Takeaways:
- The early years of retirement lay the foundation for your remaining years. Missteps now can have ruinous ramifications.
- With future income tax rates unknown, diversify into other investments where you pay the tax upfront, and pay either capital gains tax in the future or benefit from tax-free growth and withdrawals.
- Set a baseline for going forward that you can then add inflation to test the sustainability of that ‘burn rate’ against your retirement assets
“Many people underestimate the impact of stealth risks and costs like inflation and how they affect future purchasing power of expenses they can’t even anticipate yet.”
Read more: https://www.newsday.com/business/coronavirus/retirement-planning-steps-mistakes-avoid-1.49394717
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