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 72 you are required to take a distribution from a Traditional 401k/IRA or from a Roth 401k (RMD's are not required for Roth IRA's). 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.• There is no requirement that any...

If you have given any thought to a savings goal for a comfortable retirement, you have also probably wondered how long it might take to reach that goal. That can depend on many factors but using the Rule of 72 is a quick and easy way to determine how long it may take for your savings to double using a specific rate of return, and then you can extrapolate from there. Contrary to what it may seem, the Rule of 72 has nothing to do with your age, or with Required Minimum Distributions (RMD's) that typically start at age 72....

The state of retirement planning in the U.S., per the 2021 Northwestern Mutual Planning & Progress Study and the 2021 Schwab Modern Wealth Survey:• The Good - 91% of those with a financial plan are confident about reaching their retirement goals.• The Bad - Only 22% will make the effort to create a financial plan. 67% of those without a plan are uncertain about reaching their retirement goals. • The Ugly - Of the 78% without a financial plan, 60% think creating a plan is too complicated or they don't have the time to create one, 56% don't know how much to...

Are you one of the 82% of households (per a Fidelity study) that doesn't have a written financial plan? Maybe you think that you don't need one. Maybe you have a DIY spreadsheet/back-of-the-napkin plan that you think is sufficient. Or, maybe you trust generic advice and benchmarks to guide you. If that's the case, with respect, I propose that you are doing yourself a disservice. Regardless of your net worth or stage of life, having a comprehensive financial plan is a crucial step in assessing your current and future financial health and it provides a roadmap to becoming financially secure....

With all of the available advice about saving for retirement, one topic that doesn't get the attention it deserves is just how to prioritize using (i.e., spending) the different sources of funds that you have worked so hard to accumulate. After decades of saving, careful thought needs to be applied to determining just how to maximize the effectiveness of those funds, how to preserve them for as long as possible, and how to minimize the "loss" to taxes. Most people have a combination of taxable accounts (which include income from interest/returns on cash savings, Social Security, pensions, etc.), tax-deferred 401k/IRA...