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.
Whether it is for greater investment flexibility, starting a new job, or retiring, rolling a 401(k) plan over into an IRA is usually a route that many individuals take. While in most scenarios, this is a prudent step to take, there are a couple of reason why one should consider leaving a 401(k) where it is.
In order to help combat the COVID-19 pandemic, the $2 trillion+ federal aid package includes several provisions intended to help ease the financial burden that retirees and working individuals may face during these uncertain times. While the biggest provision is a $1,200 stimulus check, there are other provisions under the CARES Act that one should be aware of.
There is no denying the tax-free benefits of Roth IRAs. Whether in the form of a direct contribution or a conversion, adding money into a Roth IRA is generally a good idea. With a conversion, however, there are a few caveats to keep in mind as it may not always be the best move.
For working and retired individuals, Social Security is a major piece of the retirement puzzle. This stream of guaranteed income is an ever-changing program that is tweaked annually to ensure that one can continue to rely on the benefits being a staple of financial support. On an annual basis, the following are some of the changes that are made:
A few weeks ago, the SECURE Act was passed which has made some significant changes that can affect one’s financial planning strategies. Below are several important provisions you should keep in mind going forward:
It is usually recommended that individuals name beneficiaries on their IRAs as it is an effective and simple estate planning strategy. Once a beneficiary inherits an IRA, however, there are various factors to consider when thinking about what to do with these assets, especially when it comes to distributions.