Enjoying Retirement - The Beginning of a New Journey
You made it! You’ve worked hard and saved, and it’s finally time to start enjoying your retirement years. Remember though, retirement planning does not end when you retire – managing your retirement income is just as important as planning for it.
More years to enjoy
We’re living longer, so it’s possible you could live 20 years, 30 years, or even longer after you retire. Managing your retirement money now has become more important than ever.
Many retirees have multiple retirement accounts, and you’ll need to carefully manage how you’ll draw on these accounts.
Review your retirement assets and income
- Access to your tax-deferred assets (such as IRAs, annuities, and deferred compensation from an employer) will be subject to distribution requirements and possible tax consequences.
- Capital gains tax consequences may limit how you can make use of your personal investments and other assets.
- You will have only one opportunity to make choices affecting the amount of income you receive from Social Security, a company pension plan, and annuities.
Look at the big picture
- Begin by listing everything you have to work with -- each of your assets and how much income each is likely to produce.
- You should also make a list of the dates when you must start taking your distributions. With each asset you own, you should find out both the tax consequences and distribution options.
Use taxable assets first
If you draw down your ordinary investments and savings before your tax-deferred assets, you will be able to keep the tax-deferred assets growing longer without being affected by annual taxes. But be aware that minimum distribution requirements and possible tax consequences will affect how long you can wait to access tax-deferred assets.
Use tax-deferred assets next
Your payout decision should follow a careful analysis of your individual financial situation and needs. You need to step back and carefully consider all your alternatives and the tax consequences before you act.
Consider making the following an important part of your retirement plan too:
- Life Insurance – to pass on more to your heirs
- Long Term Care Insurance – to safeguard your assets if you need long term care services
One call to a local COUNTRY representative can help take the confusion out of managing your retirement assets and finding the right plan for you.
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