It is important to review the details and structure of your debt, your cash flow, your income tax situation, and your long-term goals in creating a roadmap for both managing your debt and providing a secure retirement.
In the article "401k Rollovers: To Roth or Not to Roth – 7 Fiduciary Questions" appearing in Fiduciary News, Steve Martin, JD, CPA, CFP®, provided insight on the pros and cons of converting 401k to the Roth IRA. Steve explains how a tax bomb may be waiting for those individuals that have relatively higher amounts in Traditional IRAs in their later retirement years due to the Required Minimum Distributions.
For future and current retirees, the question is “How much can I safely withdraw from my retirement savings each year?” While the debate rages, here is a fresh look and a simple rule of thumb.
Working during retirement has both financial and non-financial benefits. However, before you go down this route, take into account various considerations.
Although most people 50 and older have personally saved a certain amount for retirement, fewer than half (45%) have calculated how much they will need to live comfortably in retirement and far fewer have looked at the related issues surrounding their wealth.
Establishing a savings plan for 2017 should be done at the beginning of the year. Thoughtful consideration should be placed in determining the type of savings you make to your employer-sponsored retirement plans.
While most spring cleaning projects are likely focused on your home, you could take this time to evaluate and clean up your personal finances as well.
Oasis Wealth's Founder and Wealth Advisor, Steve Martin, provided his wisdom in an article in the National Federation of Independent Businesses site that dealt with working with business owners planning for retirement. In this Karen Sams April, 2017 article titled "Retirement Planning Musts for Small Business Owners" in the NFIB, Steve stresses the importance of tying the analysis of the business income and the business sale with the personal retirement analysis. Steve stressed that the "analysis should include cash flow and net worth projections, estimated living expenses, income taxes incurred upon the sale of the business and throughout retirement, and major purchases in retirement."
