If you are retired, or getting close, it’s important to plan the best route to make your income last. One of the most important things includes, avoiding the five most common pitfalls:
Dust Off Your Estate Plan
Last quarter, we talked about establishing an estate plan. If you have one set up, it’s important to review it every three years to help ensure alignment with the law and your wishes. There are ten common pitfalls of an outdated estate plan.
Our second quarter update comes with cautious optimism about the outlook for the US economy and the markets. Continued strengthening in the US economy paired with a rebound in energy prices have led the markets to new highs despite political uncertainty across the globe. Interest rates remained unchanged in the United States, while Japanese and European banks began to feel the effects of negative interest rates. While uncertainty related to the election and interest rates could cause volatility in the markets over the next quarter, we expect the global economy to continue to strengthen gradually. (more…)
Retirement Distribution Pitfalls: Not Reinvesting RMDs You Don’t Need
Accumulation is a key facet of reaching your retirement goals. However, we tend to see far less about portfolio drawdown, or decumulation—the logistics of managing a portfolio from which you’re simultaneously extracting living expenses during retirement. This can be even more complicated than accumulating assets.
Pitfall: One of the big mistakes of retirement distribution can be not reinvesting RMDs you don’t need. Retirees may experience a situation where the amount they must withdraw from 401(k)s and IRAs for required minimum distributions can take them over their desired distribution threshold. The RMD rules require that people initially withdraw less than 4% of assets at age 70 1/2, but distributions can quickly step up into the 5%, 6%, and 7% range. (more…)
Meet Taylor J Bonnell
Tax Associate
Taylor Bonnell is a Tax Associate and prepares fiduciary, business and individual tax returns. She…