Many individuals find themselves in a situation where they wonder if they should stay in place or move during retirement. For individuals that do decide to move during retirement, there will be a lot of costs, financial and emotional, to consider. That said, the biggest question to answer first is, “Where do I go?”
While the main point of a Roth IRA is to help you save for retirement (along with any other type of retirement savings account), life can take a sharp turn where you may be faced with the option to withdraw from a Roth IRA, which can result in potential taxes and/or penalties. Here we will go over what rules to keep in mind.
In this current low-rate environment, the decision to refinance to a lower rate and/or a lower term mortgage can be a relatively simple choice to make. Potentially saving tens of thousands of dollars in interest payments over the life of the mortgage is a huge benefit to homeowners.
You cannot time the market but you can time your retirement withdrawals. Sequence risk is the potential danger to periodically withdrawing funds from your retirement savings just as the market is experiencing negative performance. Individuals who are about to retire face the greatest sequence risk.
The triple tax savings benefits of Health Savings Accounts (HSA) make it an attractive savings option, not only for medical expenses but for potential retirement savings.
Social Security benefits are a staple of funding one’s retirement needs. However, these benefits along with your life savings may not be enough to fund your retirement or perhaps you never want to stop working which is why some individuals may choose to continue working and take Social Security benefits.
Retirement Planning Considerations: Tax Planning and Long-Term Planning
Planning for retirement is a complex process. There are various factors to consider to confidently answer the simple question, “Do I have enough to retire?”. The factors that go into answering this question will be different from person to person, however there are some overarching factors that everyone will need to consider.