A Tax Trap That Catches Many By Surprise
Tax planning through retirement is important; and failing to do it through all four stages of retirement can prove costly because some of the tax traps are permanent. Here’s an example:
Tax planning through retirement is important; and failing to do it through all four stages of retirement can prove costly because some of the tax traps are permanent. Here’s an example:
Social Security claiming decisions aren’t as simple as they may appear. The decisions you make for yourself can impact your spouse, your future taxes, and even the bite Medicare premiums take from your Social Security benefits.
We all know the Fed target is 2% inflation; but, since COVID-19 and all the accompanying spending, it’s been tough going for the Fed. While the rate of inflation has been slowly declining, it’s still stubbornly around 3% – and with people living longer, it can still spell disaster for those facing retirement, especially with longer life expectancies.
Retirement milestones should actually begin the day you leave school and enter the workforce; but few people think about retirement at that age. They’re too busy starting careers. If they achieve early success, they won’t even be worried about retirement. It’s been my experience that it’s after age 50 they come through my door. By that time they’re done with stock tips and chasing rainbows. Age 50 has a way of making all of us start thinking.