Your Retirement – Did You Know?

Herb White - Weighing Your Financial OptionsSo much has changed since the days when your parents were planning their retirements—and it can be challenging to keep track of what’s new that could affect you. Most everyone knows about the prospect of longer life expectancies and how that will impact their retirements, but are unfamiliar with the other factors that could make a big difference to them down the road. Let’s take a look at some of these overlooked issues.

You know that you need to make your money outlast you in retirement. BUT, did you know…

Your income expenses won’t stay the same over time in retirement? In actuality, retirees’ expenses dwindle over the years rather than staying the same. That means that in general we need more in the beginning of retirement and less later. Our parents didn’t take that into consideration. But that is a significant factor in your planning, especially when you are planning the amount of funds to withdraw and when, and also for your estate planning strategies.

You know that putting off retirement will mean a larger Social Security payout down the road, BUT, did you know…

Putting off signing up for Medicare can mean paying more for medical insurance later? If you delay signing up for Medicare at age 65, significant penalties will apply.

You probably know that rolling over your qualified employer-sponsored retirement accounts into a tax-deferred IRA will make managing your investments easier in retirement, BUT did you know…

It can make a big difference which accounts you tap into first? Tax issues can be involved. Ask your tax or financial advisor for help on this one.

You know that in general you need to begin tapping into your IRAs and employer-sponsored plans starting at age 70-1/2, BUT did you know…

If you are still working at age 70, you need not start withdrawing money from your current employer’s 401(k) retirement plan until you retire? If you own 5 percent of that company, however, you do need to start withdrawing beginning at 70-1/2 even if you are still working.

But, if you convert to a Roth IRA, you don’t need to make any withdrawals during your lifetime. This may be a consideration if you are planning wealth transfers to relatives.

You know the ideal asset allocation for your portfolio in light of your retirement, BUT did you know…

Those investments still need careful watching during your retirement? Often a portfolio can become out of balance, which may cause a significant loss to that portfolio. Annual reviews of your portfolio and asset allocation are just as important in retirement as they were before. Ask your financial professional for advice on enrolling in a program that can automatically rebalance your portfolio.

You may know that beneficiaries are commonly named on financial products and designating them is a good way for them to avoid probate at your death. BUT, did you know…

Beneficiary designations on retirement accounts don’t carry over when you roll a 401(k) to a new employer’s plan or to an IRA, or when you convert a regular IRA to a Roth IRA? Also, be aware that some annuities require that you start taking distributions at age 85.

Most retirees know they should draft a durable power of attorney and a living will, BUT, did you know…

The “durable” power-of-attorney is unlike the “ordinary” power-of-attorney, which becomes inoperative upon the incapacity of the principal. The durable power-of-attorney provides that those powers granted to the agent will not be affected by the subsequent disability or incapacity of the principal or by the lapse of time.

Source/Disclaimer: This communication is not intended to provide legal or tax advice and should not be treated as such. Each individual’s situation is different. You should contact your legal and/or tax professional to discuss your personal situation.


Tune in to “America’s Wealth Management Show” sponsored locally
by Life Certain Wealth Strategies
Saturdays from 12 noon to 1 p.m. on news radio 630 KHOW.
Provided by courtesy of Herb White, MBA, CFP®, a CERTIFIED FINANCIAL PLANNER™ with Life Certain Wealth Strategies, 8400 E Prentice Ave, #715 Greenwood Village, Colorado, www.lifecertain.com, (303) 793-3999. Securities and investment advisory services offered through Woodbury Financial Services, Inc. Member FINRA, SIPC and Registered Investment Advisor. Life Certain Wealth Strategies and Woodbury Financial Services are not affiliated entities.


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