Many workers assume that once they retire, they’re spending naturally go down. This notion is so widely accepted that it’s not uncommon for workers and financial professionals to account for a reduction in spending when trying to calculate a retirement savings goal.
However, the assumption that spending will naturally decrease in retirement is not always correct. In fact, many retirees find that their spending actually goes up after they stop working. If you’re relying on a reduction in spending to meet your retirement goal, you may have to take some proactive steps to make it happen. To do that, it’s important to understand some of the factors that can inflate retirement spending.
Changing jobs can be exciting and stressful. Maybe you’re in the early stages of sending out resumes and interviewing. Or you could already be transitioning to your new position. Either way, amid the upheaval, you’ll want to think about your retirement savings and how your job switch could affect it.
Some people think estate planning is only for the wealthy. While it’s true that only the wealthiest among us usually face estate taxes, estate planning is still something everyone should consider. That’s especially true if you have assets that you would like to pass on to your loved ones.
Are you one of the millions of Americans with retirement money in a traditional IRA? The IRA has long been a popular retirement accumulation vehicle. Many choose to save in a traditional IRA because it may offer tax deductions for contributions, and it allows for tax-deferred growth while the funds are in the account.
Traditional IRAs are also popular choices for those who are switching jobs and need to do something with the 401(k) balance at their former employer. You can roll your 401(k) balance into an IRA without facing any kind of taxes or penalties.
It’s that time of year again. The holidays are over, and the New Year has begun. If you’re like many Americans, this is also the time of year when you evaluate your life and vow to make positive and impactful changes.
Common resolutions include things like losing weight or quitting a bad habit like smoking. You may resolve to keep in better contact with family and friends or perhaps perform better at work. As you’re sorting through potential resolutions, don’t forget about retirement planning. Nearly two-thirds of Americans say they are concerned about not having enough money to retire.1 If you’re part of that group, consider making 2017 the year you finally get back on track.