Earning an income comes with taxes, and your investment incomes are no different. As your portfolio grows into retirement, it’s important to consider the difference between retirement pre-tax income and retirement after-tax income. A savvy advisor will consider your future tax liabilities to be an integral part of your overall retirement strategy.
There are questions to ask that can help you determine if you’re ready for life’s “second act.”
Although your wish may be to fully fund your child's education, don't allow that goal to put your own retirement at risk.
Many seniors look forward to retirement, especially those who wrap up their careers feeling overworked and overwhelmed. But while the freedom associated with retirement is certainly something positive to anticipate, many Americans who go into retirement excited about that prospect wind up cash-strapped and miserable early on.
“How am I doing?”
How to Avoid Retirement Woes
There’s a pretty good chance that your parents and grandparents retired just because they turned 65. Today’s retirement is a bit more complicated than that. While age is still an important factor, your ability to connect your financial resources to your lifestyle goals is what will truly determine if you’re ready to retire.
Most people are familiar with the basic concepts of life insurance and understand that some level of protection is a necessary part of modern financial life. The question of what life insurance can actually accomplish, when considered as part of an overall financial plan, is more involved and worth a closer look.
401(k) plans were established by Congress to encourage individual savings towards retirement. Offered through employers, the plans are generally available to eligible employees who are allowed to contribute a percent of their salary to the plan.
Life is full of uncertainty and the best laid financial plans must account for the unexpected.