Planning your Rollover

If you are getting ready to retire or sell your business, it is possible that you have accumulated some savings in a company retirement plan. This does not sound like an issue, but withdrawals from such a plan can come with a significant tax bill. In order to avoid this issue, you should consider a rollover into an IRA.

The benefit to converting your savings into an IRA is that you will not have to withdraw the lump sum immediately, which postpones your taxes, and that your savings will continue to grow free of tax. As long as you make the rollover before the 60-day cutoff, you will set yourself up for a financially healthy retirement.

There are some other factors you must consider before making this decision, as taxes are sometimes unavoidable. For example, if you receive annuity payouts during retirement, these cannot be rolled-over free of tax. Additionally, a … Read More

Retirement thoughts…

You can plan for it, dream about it and try to visualize it, but there’s no way to tell for sure what retirement will be like for you until after you’ve actually pulled the trigger and left the job. As you contemplate this major life change, remember to prepare for these potential retirement surprises.

Many retirees keep on doing what they’ve always been doing, except they don’t go to work. There’s more time for shopping, doing home repairs, seeing friends and playing golf. But after a while it begins to sink in that time is a precious resource. People begin to reflect on their lives, start to say no to activities they really don’t want to do and consciously focus on the important, more purposeful things in their lives.

Eventually the fantasy of never again having to punch a time clock or rush to the commuter train gives way to the … Read More

Retirement and Working Part Time – Know the Facts

If you start taking Social Security before your full retirement age, earning more than $17,040 from work will reduce your benefits temporarily. Once you’re on Medicare, extra income could potentially trigger surcharges for parts B and D. Also, don’t overlook your required minimum distributions from retirement accounts once you reach age 70½.

After leaving a 40 hour work week behind, many retirees end up taking on part-time work even if it wasn’t part of their initial retirement plan. Today’s retirees are active and want to continue being productive in some way, it brings them a sense of value that they had in their long-time professional career. More than half of people ages 60 to 64 were working at least part time in 2017, according to the Bureau of Labor Statistics. In the 65-to-69 crowd, nearly a third were in the workforce last year. If you find yourself among those who return … Read More