Financial Power Blog — Retirement Planning

What are RMDs?

What are RMDs?

RMDs are your required minimum distribution is the minimum amount you must withdraw from your account each year. You generally have to start taking withdrawals from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account when you reach age 72 (70 ¬Ĺ if you reach 70 ¬Ĺ before January 1, 2020). Roth IRAs do not require withdrawals until after the death of the owner. If you have an IRA, you will probably need to take a distribution at some point in the future. This means that according to the IRS's life expectancy estimates, you will need to withdraw a...

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Benefits from Social Security

Benefits from Social Security

A lot of people ask "what is social security and what does that have to do with me" well, it has something to do with all of us. If you work for a company, social security is coming out of your check and if you are self employed, you are paying into social security when you file your taxes.  So what happens when you pay into it? You get a check during your retirement age. Now I can't say if Social Security will be around forever, but currently you're are paying into social security so here's the deal, Social Security benefits are...

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How Much Money Do You Really Plan to Spend in Retirement?

How Much Money Do You Really Plan to Spend in Retirement?

What kind of retirement savings will you need to have? Many individuals these days are asking this question. Given the complexity of the question, finding the solution is not always simple. In this post, we'll go over the most important things to think about when estimating how much money you'll need for retirement. Read on, please!   1. Inflation: One of the most crucial elements to take into account when estimating your retirement needs is inflation. Since living expenses tend to rise with time, you will require more money to maintain your present quality of life. As a result, it's crucial...

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Retirement Mistakes to Avoid

Retirement Mistakes to Avoid

Only 36% of adults think that they are on track to retire. Planning for retirement might boost your confidence for the future. Once your plan is in place, you will be certain that your family and you will be taken care of. Here are some retirement mistakes that people don't take into account when planning for retirement.    Not Taking Longevity into Account   People frequently misjudge how long they will live. Over 78 years is the average life expectancy in the US, with over 80 years for women. Of fact, a lot of Americans fall within those averages and, because to...

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