I think of creating retirement income plan in terms of funnels and buckets. The funnel is the decision-making process. The buckets are where your various accounts are placed and invested for income. First, the funnel. Start wide at the top with the overall retirement projection. This informs how much you can safely spend in…
Welcome back. For those of you who have stuck with this series, you are rounding 3rd base! Almost through the quick tutorial to help decide what order to tap your savings for retirement. Withdrawal Method #3: Pro Rata. Take withdrawals each year proportionately from the 3 types of accounts. Example: Joe and Sue have 50%…
Welcome back to the bite-size tutorial series about retirement withdrawal methods. This week we look at Method #2. Method 2: Tax-Deferred accounts first, Taxable (aka non-retirement accounts) second, Roth last. Pros: Spreads taxes owed on deferred accounts over a longer period of time. Get ahead of Required Minimum Distributions, possibly keeping yourself in a lower…
In last week’s blog, I introduced some thoughts and methods of tapping into your savings to create a retirement paycheck. This week, we will look at the Method #1. This is the first method just because it’s kind of the standard one people default to. It’s not necessarily the best for you. Method 1: Taxable…
Retirement in America is not for wimps. For most people, gone are the days when you hang up your tools one day and then go home to a steady pension for the rest of your life. Nowadays, we must consider Social Security claiming strategies, required minimum distributions rules, ever shifting tax brackets, and changing…
This blog is thanks to an alert reader who asked me the question about why all financial planners are not required to be fiduciaries. I’m ALWAYS looking for blog topics, so please e-mail me your questions! First, what is a fiduciary? In financial services, being a fiduciary means that your advice ALWAYS benefits the client…
This week I’m thrilled to share the expertise about life insurance of Ladicia Grosch, COO and Principal of Bridge Life, LLC. Ladicia partnered in creating Bridge Life in 2012. She has worked in the wealth transfer and life insurance industry for over eighteen years. Ladicia oversees company operations including compliance, human resources, financials, technology, and…
For those of you reading this to learn more about the Queen of Soul, Irma Thomas, get used to disappointment. If, however, you are hoping for a riveting read about Medicare premiums, you are in luck! IRMAA stands for Income-Related Monthly Adjustment Amount. It is the calculation that has people with higher means paying more…
…in the first year? That is a question. Not THE question – surely there are more important questions in life. But, with the new SECURE Act 2.0 moving the Required Minimum Distribution start date out yet another year, that old question may pop up again. To recap, the rule has always been that in the…
As the parent or grandparent of young children, you might be thinking about the best way to save for college. 529 plans, introduced in the 1990s, are a great way to shelter investment for college from taxes. BUT, as with all things there are drawbacks. One worry clients routinely express is, what if they overfund…
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