As far as we're concerned, 56+ is the new 40. Even better? You're on your way to that stage of life where you're nearing retirement, shifting your priorities to spending more time with grandchildren or traveling the world. This is the time where you are wiser, more resilient, more financially-stable, and (hopefully) in an overall state of contentment.
While you may be entering a new stage of exploration, you're most likely well aware that your financial objectives will shift from accumulation to safeguarding and preservation. Whether or not you currently work an advisor, a review of your finances is a great way to ensure your portfolio still aligns with your long-term goals.
Depending on your employer plan, you may be eligible for an in-service distribution if you are age 59 1/2 or older. This option may allow you to transfer up to 100% of your employer plan assets into a new or existing IRA account.
How do you know if you can take an in-service distribution? Ask your plan sponsor or ask us to initiate a conference call with you, us, and your plan sponsor.
Running comparisons of when to take/how much SS is expected in retirement, products that may be viable retirement income options, review of portfolio and risk tolerance (should be more conservative at this stage).
Full-time retirement may not be your cup of tea. Did you know that reportable income may allow you to continue to make Roth IRA contributions or participate in a 401(k) plan?
Working part-time may even postpone when you start to take Social Security until age 70. Discuss your options with a Georgia Services specialist and always consult with a tax professional in regards to potential implications.
Required Minimum Distributions (RMDs) are calculated by life expectancy charts that the IRS publishes each year.
As a result of the SECURE Act of 2019, the following RMD rules apply:
If you reach age 70 ½ in 2020 or later you must take your first RMD by April 1 of the year after you reach 72.
Failure to do so will result in a steep tax penalty of 50% applied to the RMD amount not withdrawn for that year.
For all of life's blessings, we as humans sometimes face unexpected and devastating life events. The emotional toll of losing your beloved partner is painful enough, but the surviving partner must now also deal with the financial aftermath.
Topics to consider, financial next moves, reorganizing and re-titling accounts/registrations.