Three Key Elements of a Solid Retirement Plan
A good plan isn’t just about the size of your nest egg. It’s also about how you manage these three things: taxes, investment strategy and income planning.
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A good plan isn’t just about the size of your nest egg. It’s also about how you manage these three things: taxes, investment strategy and income planning.
The extra time, thanks to SECURE 2.0, can be used to plan Roth conversions, consider tax breaks like QCDs and reduce taxable accounts sooner at lower tax rates.
You’re not alone. Uncertainty related to interest rates, government debt, long-term care and market volatility is making everyone uneasy. What can you do?
If you’re worried about the markets being down when it’s time for retirement, consider dividing your assets among different baskets to boost your confidence.
If tax rates go up in the future (such as when provisions in the TCJA sunset), that could lead to a bigger tax hit, depending on the types of accounts you have. Conventional wisdom about putting money in qualified accounts (401(k), 403(b) and IRA are examples) for decades has been to defer your tax liability on those assets for as long as possible and get growth in those accounts unhindered by taxes. If you can wait and pay Uncle Sam later, why pay him now?As the qualified accounts grow, so does