Retirement Planning Mistakes to Avoid
Friday November 23, 2007
With so much uncertainty surrounding Social Security, Medicare, taxes, and even how long we'll live, it is more important than ever to begin preparing for retirement. But retirement planning means more than saving a few bucks from each paycheck to put into a 401k or IRA. There are many mistakes that people make even if they are currently saving. Find out what retirement planning mistakes to avoid.
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More on retirement planning:
Comments
I totally agree and have made a very similar statement. Private retirement planning is now paramount.
Expertretirementplanning.com
We are facing the perfect storm in that whoever the next president is, tax rates will undoubtedly go up. Tax code enacted in 2001 and 2003 expires in 2010 and will capture all kinds of your income dead or alive, the largest increase since WWII. The Marginal tax rate will increase across the board from 13% by highest tax brackets to 50% by the lowest…go figure. Top tax rate on dividends will nearly triple to 39.6% from 15% most likely lowering stock performance. Capital gains will rise from 15% to 20% + state. Alternative minimum tax will bleed the middleclass yet more and capture 25 million new victims…akin to a plague. When you think about traditional tax deferred vehicles it does not make sense to defer taxes to what inevitably will be a higher tax bracket in the future at ordinary income. The answer may lie in life insurance structured for income and a self-directed solo-401(k)s since there are not income limits to ROTH on the solo-401(k). This is the dynamic duo of tax-free retirement income.
In my book “The 3 Secret Pillars of Wealth” we explore solutions to the crisis that is coming in 2016 when millions of Americans turn 70 and have to take mandatory retirement distributions (MRDs) leaving the stock market in a tizzy. The costs of funds coupled with the rising cost of fuel, food and other living expenses is shaping up for the perfect disaster unless we get educated and take action.