• shannonmcginley8

Do's and Don’ts of Retirement Income Planning

Since saving for retirement requires a lot of time, energy, and thought, it’s never too early to get high return investment advice in 10924 from an experienced financial expert. Retirement income planning can be overwhelming because it involves complex, individualized, and interrelated considerations. Although each situation is unique, learning the basic do’s and don’ts is a must.



What are the Do’s and Don’ts of Retirement Income Planning?


DO Diversify


You’ll want to diversity accounts from which you can draw your income, including Roth, IRA, taxable, 529, and Healthcare Savings Account.


Aside from gaining tax control, diversification also allows you to maximize our progressive tax system. For example, taking distributions from traditional IRA accounts makes sense because these are taxable as income. Likewise, since Roth IRAs have less tax impact, you can use them for additional distributions.


DO Make Estate Planning Goals


Keep in mind that when it comes to gifting to your heirs, not all account types are created equal. For instance, choosing traditional IRA accounts for your inherited assets will cause your beneficiaries will be compelled to take required distributions that will add to their taxable income per year. Alternatively, since Roth IRAs grow tax-free over a lifetime, they’re considered a valuable vehicle for wealth accumulation.


DON’T Miss Low Tax Year Opportunities


If you’ve spent a certain number of years without earned income from employment before Social Security and required minimum distributions, you can pay taxes at a lower rate. To avoid wasting low tax year opportunities, it’s best to convert a portion of your IRA account to Roth IRA so that you can create taxable income today and tax-free growth down the road.


DON’T Overlook Mandatory Income Sources


It’s best to start an income plan with spending RMDs (Required Minimum IRA Distributions). In most cases, traditional retirement accounts compel owners to take annual distributions and pay taxes on those throughout their retirement.


It won’t make sense to take RMDs, pay your taxes, reinvest them, and fund your retirement needs from other types of accounts. Remember to spend RMDs first.



Do You Need High Return Investment Advice 10924?


At 1879 Advisors, we understand the importance of having the right retirement income strategy to secure your sustainable retirement. Schedule an appointment with our team of financial experts today.

Recent Posts

See All