The Complete Retirement Planner Blog

Required Minimum Distributions (RMD's) are often resented because they are seen as "forcing" you to sell securities from 401k/IRA savings and creating unwanted tax liability on the distribution. Perhaps a little planning and a different perspective might help. It is true that starting at age 73 (age 75 if born in 1960 or later) you are required to take a distribution from a Traditional 401k/IRA. However, there are three things to keep in mind that may make this transaction more palatable: • You know in advance how much the distribution will be, since it is based on an I.R.S. schedule.• There is...

According to this year's Fidelity Retirement Study, the difference between having a written financial plan, and not having one, magnifies a significant gap between those who have long-term financial confidence that their savings will support them during retirement (~81%) and those who either have ongoing financial concerns that they won't or who are completely unsure (~45%). A whopping ~31% have no idea how much they will even be able to save before retiring. For those without any semblance of a plan, not establishing at least a target savings balance, a Social Security claiming strategy, or a tentative withdrawal rate, only...

These are the basics regarding Social Security:Social Security Full Retirement Age (FRA) is age 67 for those born in 1960 or later, and age 66 if born before 1960. You will receive your "full" benefit (estimated on your S.S. statement) at your FRA (age 66 or 67). But once you reach age 62, you have the option to claim a reduced benefit (a "full" benefit is reduced by ~30% if you claim at age 62, or ~7% for each year that you claim earlier than your FRA). Whether you claim early, or wait until age 70 to claim (maximizing your...

One of the most essential components of any financial plan is the inflation rate. We hear about it so often in the news that it is often taken for granted, or glossed over a bit when planning, but it's impact on a long-term plan can not be overstated. While the actual rate fluctuates gradually from month to month, year over year changes can be more significant, and both will affect monthly and yearly expenses. While you can't accurately predict an annual outcome (much like not being able to predict stock market returns), the best way to incorporate inflation into a...

Prioritizing the order of funds used in retirement is an important consideration as it can have a significant impact on how long savings may last, and offer ways to minimize the "loss" to taxes. One way to do this is to model different scenarios in your financial plan. Many financial articles suggest using savings in the following order during retirement:1) Taxable accounts 2) Tax-deferred accounts (Traditional 401k/IRA)3) Tax-free accounts (Roth 401k/Roth IRA) But the truth is, using one fund type at a time is as over-simplified and misleading as using generic benchmarks or retirement calculators to determine how much to save...