Tuesday , May 18 2021
Home / Tag Archives: retirement

Tag Archives: retirement

10 Social Security Mistakes That Can Devastate Retirement Income

Social Security, even with all its problems, is unquestionably an important component of retirement income for millions of American retirees. For about half of seniors, Social Security is 50% of their income, and 1 in 4 seniors say it makes up at least 90% of their income. There are more parts to Social Security than most people realize. Only in the last 10 years, Social Security planning has become widely discussed. And even with all the information available, retirees are making common...

Read More »

6 Tax Breaks Retirees Often Don’t Think About

Let’s update some two-thousand-year-old tax advice—Give to Caesar what belongs to Caesar, but don’t give him more than that. Today, tax deductions and credits help determine how much Caesar gets. As an old guy told me a long time ago, “If it’s in the IRS code, it’s there to be used.” Unfortunately, there are tax breaks available to retirees that get overlooked. Here are some of the most common.   Higher standard deduction For years, the IRS has provided a higher standard deduction for...

Read More »

4 Social Security Planning Steps BEFORE You’re Ready to Retire

Social Security is an important part of almost every retirement plan, whether you’ve saved enough or not. That’s why it’s important to know as much about your Social Security situation as possible. And you don’t want to wait until you’re about to retire to gather the facts and take appropriate steps. Social Security planning needs to start 5 years before your target retirement date.   Check your estimated benefit amount The easiest way to check Social Security’s estimate of how much...

Read More »

States with the Biggest and Smallest Retirement Tax Bite

Remember that sage financial warning, “It’s not how much you make. It’s how much you keep.” Truer words were never spoken when it comes to retirement income. And taxes, federal and state, are one of the biggest determinants in just how much retirees have to live on. Here are some taxes you’re likely to see in retirement, who’s doing the taxing, and how friendly—or unfriendly—they are to you.   Social Security For many, Social Security is a major portion of retirement income. The myth is...

Read More »

Retirement Exit Strategy Checklist

Retirement. It’s a magic word and it’s supposed to be a magic time in your life. You’ve planned for it, worked for it, anticipated it, and expected a great life that comes after it. Today, people are retiring at a rate 27% higher than 10 years ago. Much of the increase is because of unplanned, early retirement due to declining health of the worker, leaving the workforce to care for a family member, taking an early retirement package because of worry about future employment, or they’re being...

Read More »

The Insatiable Appetite to Tax Social Security Benefits

First, it was 10%, then 20%, and today more than 50% of U.S. retirees pay taxes on their Social Security benefits, and the number is expected to go even higher. The cause seems to be that one government hand doesn’t know, or care, what the other government hand is doing. The rub comes because income tax brackets are adjusted for inflation each year. But income thresholds determine if you pay taxes on Social Security, and how much, haven’t been adjusted for inflation since 1984 when benefits...

Read More »

IRA Required Minimum Distributions Get Smaller – By a Little

It’s a tiny little gift from the IRS, but it’s still a gift. Beginning January 1, 2022, Required Minimum Distributions on IRAs, qualified retirement plans, and annuities will be less. It’s your reward for living longer. RMDs have to be taken by people turning age 72 after 2019. Older taxpayers were required to begin RMDs the year after they turned 70 ½. How much they were required to take was based on life expectancy tables that had been in place at the IRS for a long time. But people are...

Read More »