Your Golden Years should be the best years of your life. Go places you’ve always dreamed of going, accomplish goals you never got around to and live each day the way you pictured you would. Making the decision to enter retirement is exciting, however many people misjudge the requirements for their future and make risky assumptions once they are actually retired. In this episode of “Your Money, Your Wealth,” CFP® Joe Anderson and CPA “Big Al” Clopine help you understand retirement spending, proper tax planning and other crucial factors that should be reevaluated with regard to your retirement decisions.
0:34 “The good news is that people are actually starting to plan; the bad news is that they’re not using the right numbers”
2:52 “Most people think they are going to spend less in retirement but our experience is that they’ll probably end up spending more because they have more time for travel and other things like that”
3:14 “People don’t realize that when they pull money out of their 401(k)s, when they get money from their pension plans, Social Security it’s all taxed at ordinary income rates”
5:59 “Research from Boston College shows that half of all American households will not have enough money in retirement to maintain their standard of living before they retired”
7:55 “Take a look at what your income sources are in retirement, such as Social Security, such as pension plans, maybe you have a real estate portfolio, maybe you might even work part time”
15:12 “There are three different pools of money that you can invest in, and they’re all taxed differently. You have a tax-free pool, a taxable pool and you have a tax-deferred pool”
15:53 “A lot of you retirees have our biggest assets in this [tax-deferred] pool”
17:57 “Where do you think tax rates are going? If you think they’re going up, it’s a good idea to start loading money up here [in the tax-free pool] because then any future dollar is not going to be taxed”
18:43 “Have some diversification on how you’re pulling your money out”
20:44 “People are retiring probably earlier than they should, if you wait until 66, 70, you’re going to be a lot better off”
21:09 “Half of people are forced into early retirement”
23:41 “If I’m fully funding my 401(k) plan, you can still contribute to a Roth IRA as long as your adjusted gross income allows you to”
