Question: I am considering adding an immediate annuity to my retirement portfolio. My research suggests these annuities make sense, but I wonder whether it would be better to purchase it from my 401(k) or my Roth IRA. What would you suggest? More
As you pull together your records to prepare this year’s tax return, it might mark the first time in a while that you’ve really examined your finances.
If you are one of the many retired Baby Boomers, perhaps the amount of your interest income caught your eye. You were probably surprised, because if you’ve got $100,000 of your retirement assets in a bank savings account, the tally of monthly interest amounts to a little more than $20 per month. For the year, you earned around $250.
Your money isn’t working for you.
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A generation ago, retirees could rely on workplace pensions, along with Social Security payments, to provide guaranteed income that would meet most, or perhaps all, of their living expenses.
That doesn’t happen anymore. When you plan your retirement, you must take responsibility yourself to create a pension substitute from a mix of options that you can combine and customize to meet your needs. Often advisors unfortunately limit those options to investments like stock and bond mutual funds – combined with a “withdraw until it runs out” strategy. That’s very far from a pension. More
A radio show I heard recently referred to an observation from the author Kurt Vonnegut, who long ago suggested that the U.S. government create a new cabinet post called “Secretary of the Future.”
The czar would predict what the country needs to do to prepare for 20 to 50 years out. The show’s host asked the audience for topics that would most likely contribute to the country’s health.
Everyone’s goal is to pay as few taxes as possible, but when planning for retirement many investors and even their advisors neglect a basic concept:
Die broke in your IRA or 401(k) account and
die rich in your personal investment account.
The tax rules dictate where to die broke and where to die rich. With a little planning and asset management, anyone can do it. Instead of fighting the tax code, take advantage of it by putting each of your retirement investments – stocks, bonds or income annuities – in the account that benefits you most.
With smart allocations, you will realize potentially huge gains. More