Most of us are looking forward to the retirement, but the cold truth is that many people are not quite prepare for it, which is a cause for a lot of anxiety. Starting preparation as early is possible is ideal, but even later in life you can undertake some steps to make it easier and more comfortable to retire. It is also true that the solution for one person may not be preferable for someone else. … [Read more...]

One challenge during retirement is determining when to withdraw from each type of retirement account. The conventional view is to withdraw from taxable accounts first, then tax-deferred (e.g., 401(k)s), then tax-free (e.g., Roth accounts). However, this method could potentially waste tax deductions or place you in a higher tax bracket. A number of factors have to be considered in planning your … [Read more...]

There are many different retirement income strategies but three of them are more commonly used that the others. The most popular strategy is the systematic withdrawal strategy which is when a person takes out a specific amount from their fund at the end of the year and increases that amount each year. The flooring retirement strategy is based off your spending goals as well as your wants and needs … [Read more...]

In most cases, retirement contributions are made on a pretax basis, reducing taxable income in the year of the contribution. However, they can also be made with after-tax earnings. When done correctly, these amounts will be tax- and penalty-free at the time of distribution. Good record keeping is essential, especially for IRAs, which do not have the same reporting and taxing requirements as … [Read more...]

There are a few different ways that you can maximize the amount of money that you will make during your retirement. However, you should also remember that any money you withdraw from your retirement fund will be taxed and also subject to 20% withholding. A great way to maximize your income during retirement is to roll it over into an IRA. You also can cash out some of your taxable investments … [Read more...]

When it comes to your retirement income, it's important that you understand how it is taxed. Many different retirement income sources are taxed which include any income you make from investments, a portion of your social security benefits, and some of your pension income. A great way to help minimize your taxes while you're retired is to invest in a Roth account as they are not taxable during … [Read more...]

One of the most beneficial things that you can do in order to prepare yourself for retirement is to get income streams from different places. You can do this by picking up a part time job and saving that money for an emergency fund. You also can claim social security benefits when you hit a certain age which will give you a monthly payment. Finally, a pension can be very helpful as it is a regular … [Read more...]

When it comes to paying off your debt or saving for retirement, it really depends on the situation that each person is in. For example, if a person has a mountain of debt they should probably pay it down before investing in their retirement. If you don't have a bunch of debt, see what the maximum amount your employer will match in your 401K and then match what they will contribute. Finally, try to … [Read more...]

There are many different income strategies that you can use when you are set to retire. A bucket strategy is commonly used which involves dividing your retirement savings into different buckets. Typically one bucket will be used as an emergency fund and another will be used for long-term investments. Systematic withdrawals are simply taking money out of your retirement fund each year with the … [Read more...]

Authors Patti and Milledge Hart considered themselves "resolutionists" rather than retirees. The couple has written about what future retirees will wish they'd known sooner. One is that people have more time left nowadays, with the average 65 year-old living around two decades more. The Harts encourage people to start planning early for their post-career years. They also admit they underestimated … [Read more...]