Threats to Retirement Finances – What’s Cutting into Your Savings
Threats to Retirement Finances – What’s Cutting into Your Savings?
There could be many threats to retirement finances, so what’s cutting into your savings? When it comes to a well funded retirement you need a strategy that build your assets at the same time it helps to protect them against taxes, inflation, and the general costs of living. Roland goes over the different ways these can threats to retirement finances.
Today we’re discussing how retirement expenses that could be cutting into your Financial Security in retirement.
When it comes to a well funded retirement you need a strategy that build your assets at the same time it protects them against the assaults of taxes, inflation, and the general costs of living. There are many ways these can pose potential threats to your financial security in retirement. Inflation that can erode your buying power. As prices go up your income may not be able to keep pace. According to US Inflation Calculator dot com, The annual inflation rate for the United States was 4.2% for the 12 months ending April 2021. This is according to U.S. Labor Department data published in May. This marks the largest increase since 2008.
Not to mention, Estate Taxes that can gobble up large amounts of what you leave to your heirs. An Article published by Cerulli Associates, estimates that nearly 45 million U.S. households will transfer more than $68 trillion over the next 25 years, Baby boomers hold the bulk of the wealth, thanks to a decade of stock market and real estate growth. So, Estate planning is critical because important changes have occurred and here’s what families should know as they weigh options to transfer wealth.
Here’s a sneaky one, Withdrawal Penalties. Did you know you may have to pay a penalty if you take too little from your traditional IRA? This is in addition to Income Taxes which can be your single largest expense, even after you retire. And what about, Local Taxes? Some Places are much more expensive to live in because they have higher taxes.
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