If you’ve spent decades building up your retirement savings in tax-deferred accounts, you may have heard the term Required Minimum Distribution (RMD). But what exactly does it mean for you, and why is it so important to plan for it? Let’s break it down. What is an RMD? An RMD is the minimum amount you must withdraw each year from certain retirement accounts once you reach a specific age. These are required for accounts like traditional [...]
You’ve worked hard and saved diligently, and now you're in retirement or on the doorstep of it. You’ve run the numbers. You might even have a sizable nest egg. So why do you still feel uneasy? That lingering anxiety is more common than you think, even among those who appear to be financially prepared for retirement. And it often comes down to one surprising truth: saving enough isn’t the same as having a plan to make [...]
Understanding the Shift from Accumulation to Income As a financial advisor, one of the most common questions I hear—especially from clients entering retirement—is: “What should I actually do with these savings I’ve amassed for retirement?” It’s a great question. And it usually signals something deeper: the start of the distribution phase of retirement. You’ve spent years in the accumulation phase working, saving, and investing. But now, the mindset begins to shift. It’s no longer just about [...]
Most retirees don’t fear market crashes or inflation nearly as much as they fear one very real possibility: running out of money. And yet, many financial plans focus on growing your nest egg, not preserving and distributing it over a retirement that could span decades. The Longevity Problem This is the core of longevity risk1—the risk of outliving your assets. Thanks to advances in medicine and healthier lifestyles, it’s now common for people to spend 25 [...]
Birthdays in retirement aren’t just a reason to celebrate—they’re also checkpoints that can unlock new financial opportunities (or trigger important deadlines). From Social Security eligibility to Required Minimum Distributions (RMDs), several key ages mark turning points in your retirement journey. Here are four birthday milestones every retiree should know—and what they mean for your financial strategy. Age 59½ – Penalty-Free Access to Retirement Accounts Reaching age 59½ marks the first major turning point in retirement account [...]
Navigating the intricacies of retirement accounts can often feel like charting unfamiliar territory. Whether you're adjusting your investment portfolio or considering contributions and withdrawals, understanding the tax implications is crucial to maximizing your retirement savings. Let's delve into how transactions within Individual Retirement Accounts (IRAs) and 401(k) plans are taxed and how these differ from contributions and withdrawals. Internal Transactions: Selling Stocks Within IRAs and 401(k)s Imagine your retirement account as a greenhouse nurturing your investments. [...]
Retirees aiming to reduce their taxes in retirement can benefit from strategic conversions and transfers between traditional and Roth Individual Retirement Accounts (IRAs), especially when considering the timing and financial landscape. Identifying optimal windows for Roth conversions can lead to potential tax advantages and could contribute to retirement income. Here are key opportunities to consider: During Market Downturns Market declines can present a prime opportunity for Roth conversions. When the value of your traditional IRA decreases [...]
Catching up on retirement savings can feel daunting, especially if you've started late. However, with strategic planning and commitment, you can build a comfortable nest egg for your future. Here are four actionable steps to help you enhance your retirement savings in 2025. Leverage Catch-Up Contributions For individuals aged 50 and above, the IRS allows additional "catch-up" contributions to retirement accounts. In 2025, you can contribute an extra $7,500 to your 401(k), 403(b), or similar employer-sponsored [...]
The most pressing question regarding retirement is, "What amount should I have in savings?" This concern might cross your mind a lot. It could even be a source of significant stress for you. The idea of laboring well into your 70s or 80s is not appealing, so how can you make sure that your savings are enough? Begin from this point: work with a professional to find out the yearly amount you anticipate will be necessary [...]
Retirement is often viewed as a static phase of life, but the reality is far more dynamic. As retirees progress through their golden years, their spending habits and budgetary needs can evolve significantly. Understanding these changes is crucial for effective retirement planning and ensuring financial stability throughout this important life stage. The Early Years The initial years of retirement are often characterized by increased spending. Many retirees, newly freed from work commitments, indulge in activities they've [...]