Why Do People Put Off Saving for Retirement?
A lack of money is but one answer.
Common wisdom says that you should start saving for retirement as soon as you can. Why do some people wait decades to begin?
Nearly everyone can save something. Even small cash savings may be the start of something big if they are invested wisely.
Are Your Beneficiary Designations Up to Date?
Who should inherit your IRA or 401(k)? See that they do.
Here’s a simple financial question: who is the beneficiary of your IRA? How about your 401(k) or annuity? You may be saying, “I’m not sure.” It is smart to periodically review your beneficiary designations.
What Should You Keep?
Even with less itemizing, there are still tax documents you want to retain for years to come.
Fewer taxpayers are itemizing in the wake of federal tax reforms. You may be one of them, and you may be wondering how many receipts, forms, and records you need to hold onto for the future. Is it okay to shred more of them? Maybe not.
How much attention do you pay to this factor?
Will you pay higher taxes in retirement? Do you have a lot of money in a 401(k) or a traditional IRA? If so, you may receive significant retirement income. Those income distributions, however, will be taxed at the usual rate. If you have saved and invested well, you may end up retiring at your current marginal tax rate or even a higher one. The jump in income alone resulting from a Required Minimum Distribution could push you into a higher tax bracket.
Are the days of itemizing over? Not quite, but now that H.R. 1 (popularly called the Tax Cuts & Jobs Act) is the law, all kinds of itemized federal tax deductions have vanished.
In the realm of financial planning, time is our most valuable asset. It’s available to all of us, providing each individual with the same opportunity to optimize its value in building wealth. It’s the only resource we all have over which we have some degree of control.
Have you ever stopped to wonder why 60 is considered retirement age? Some public services - like the police force in certain countries - require you to stop working at 60.
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