Introduction : get your exit strategy ready. Understanding the basics -- Cast your retirement savings into the right role. Decide whether your primary goal is to generate income from your retirement savings or to preserve as much of its value as you can for the next generation -- Know the facts about your pension and retirement savings plans. It's easier to maximize your income, lower your taxes, and avoid penalties if you understand your pension and retirement savings plans. Get the essentials in order -- When to get started-and how. Give yourself two to five years to put your investment strategy in place, six months to one year to get paperwork in order -- Organization, consolidation, and paperwork. You need a "back-office" plan to make your job easy and convenient -- How to choose, change, and keep track of your beneficiaries. Your beneficiary form is the will for your retirement account. Keep it in a safe place. Types of retirement plans -- Your workplace pension plan. Think about your goals and your skills before you choose how you want to take retirement income from a pension plan -- Individual retirement savings accounts. Even if you have never had an IRA, chances are there could be one in your future -- Small business retirement savings plans. Similar rules, but fewer protections, apply to small business retirement plans. Know the rules for rollovers and withdrawals -- Rollovers and withdrawal options for workplace retirement savings plans. You have more options for tax savings and control if you understand the eligibility rules and deadlines -- Required withdrawals from your retirement savings plans. You're required to begin minimum withdrawals from most accounts at 70, but there are some ways to delay. Avoiding taxes and penalties -- Minimizing taxes. Your decisions about withdrawals-how much you take, when you take it, and from what accounts-affect your taxes -- Penalties-and how to avoid them. You can always get at your retirement savings penalty free, if you know the ropes -- Important dates and milestones. From age 55 to age 90, the IRS is watching you. Mark these birthdays on a special calendar. The best strategies for handling retirement assets -- Play it smart with your social security. You can receive social security income early or hold out for a higher benefit if you wait -- How to choose-and when to change your investment strategy. Your investment strategy in retirement should be realistic, optimistic, uncomplicated, and easy to execute.
How to Create Your Income Strategy. Limit your first withdrawal to 3 percent to 5 percent and raise the dollar amount you withdraw to keep up with inflation -- When an annuity makes sense. An annuity can guarantee you income for life, but costs and health of the issuer vary widely -- When a Roth IRA conversion makes sense. It's a great, tax-savvy way to pass on wealth to your heirs. But the window of opportunity for conversion may be small -- When you don't need your retirement savings for income. You need a special strategy to maximize wealth transfer and minimize taxes. Special Situations -- Early withdrawals from your retirement savings. You can get around the 10 percent penalty tax -- Company stock in your retirement accounts. You could reduce your tax bill by about a third on this asset, a very good deal if the stock has appreciated strongly -- For women only. Women fall behind during their retirement savings years and need strategies to catch up because they live longer than men -- When your partner is not your spouse. A domestic partnership agreement affords protection when you are separated by death -- When you inherit retirement assets. Two imperatives : preserve the tax-deferred growth, and don't touch a penny until you know the rules -- Your retirement assets as part of your estate. A proper beneficiary form is essential, and a trust may help you accomplish special goals.
|
