In a sense, you have been planning for your retirement ever since you started working. Maybe you’ve been contributing to a 401(k) plan, or maybe you’ve been socking away money in an IRA, but without a doubt, you’ve been looking forward to your golden years. And I want you to enjoy those years without worrying about having to take out a reverse mortgage on your house.
Some IRA planning and investment strategies may appear easy to execute, but errors can lead to unexpected taxes or penalties, loss of the IRA’s tax-exempt status, and even disinherited beneficiaries. Where can things go wrong? Here are five common IRA misconceptions, as well as tips for making a more informed choice.
If you’re like most people, you’ve saved for retirement in multiple ways, including employer plans and individual retirement accounts (IRAs). As you approach retirement, it may make sense to consolidate all of your savings into one account to achieve a coordinated investment plan.Why consolidate?Consolidating your retirement accounts offers several potential benefits:
For years, you have tucked away a portion of your income, saving and investing along the way. But now that you’ve grown your assets, it’s time to start drawing on your accounts. While this may appear to be a simple matter of selling a particular stock, there is something of an art to taking distributions. Determining which assets to liquidate, and when to do so, requires careful analysis of
When you leave a job, you have several options for dealing with the funds in your 401(k) or other employer-sponsored retirement account. One option is an indirect rollover. With this method, you receive a distribution check from your employer and then have 60 days to deposit the funds into an IRA or your new employer’s plan.