There are advantages and disadvantages to using a trust as an estate planning tool. Depending on your goals, the use of a trust can be an effective way to achieve your estate planning objectives. Trusts are usually categorized in one of two ways: 1. Inter Vivos Trust (Living Trust) An inter vivos, or living, trust
You may find that you have accumulated a number of workplace retirement accounts over the years. Consider consolidating these assets into a single rollover IRA to simplify your life and help you take better control of your financial future. Thanks to favorable tax laws, your retirement plan assets can be as mobile as you are.
By the numbers The IRS requires an employer to withhold 20% for federal tax purposes when an employee takes a 401(k) distribution in cash. Employees younger than 59½ may be penalized an additional 10% by the IRS. If you separate from service after age 55, this penalty does not apply. When employees roll their assets
Key points Work closely with your financial advisor to establish spending priorities and determine the best options for managing retirement assets. Apply for unemployment benefits immediately. There are strict deadlines that can’t be missed. If possible, don’t let health insurance lapse. Without insurance, a health crisis could seriously jeopardize your financial stability. Consider deferring debt payments
There is a good chance your 401(k) is one of your single largest assets. And the decisions you make about it can have a lasting impact on you and your family. Key Points Your 401(k) may be your single largest retirement asset. The wrong decision can result in substantial taxes, penalties and an unnecessary reduction
When you take a distribution from your company’s retirement plan — at retirement or when you change jobs — you may find yourself with a sizable sum of money. Key Points When changing jobs or getting ready to retire, you will need to decide what to do with the assets in your employer-sponsored retirement plan
1. Not taking advantage of the Stretch distribution option or not establishing it properly The Stretch IRA is a way for each IRA beneficiary to maximize the payout period over his or her entire life expectancy. Properly designating beneficiaries and informing them of the IRA owner’s “Stretch” intentions are key to making this strategy work.
Americans are living longer, healthier, and more active lives than past generations, and they want to ensure their healthcare and domestic needs are met. That means saving for a longer retirement is critical. Everyone has different circumstances. Fortunately, a diverse array of options is available to address your individual needs and aspirations. A skilled financial
Having the choice to retire requires financial freedom. Proactive retirement income planning can help you pursue this freedom. Here are 3 simple steps to help you start planning right away: Define your Retirement Goals Develop a Plan to Generate Income Review your plan annually Define your Retirement Goals Whether you’re looking to better your health