How to Spend Wisely in Retirement When it comes to retirement and finances, there’s enough material about saving to fill a library. You see commercials on TV showing one tiny domino gradually becoming a massive tower, you hear advice from coworkers and family members, and you read books and articles on the topic. Much less attention, however, is paid to how to spend those savings once you’re actually retired, even though it’s a significant part of the equation. After all, it doesn’t matter how much you save if you blow it all in a year. Here are a few considerations to keep in mind as you begin chipping away at that nest egg. of increased medical costs or other later-life expenses, an escalating plan provides a financial safety net. What to Spend On Some of your spending choices Make Your Savings Last
will come down to personal preference and interests, but you might be surprised to learn that one category of spending consistently proves more fulfilling than others. Professor Michael Finke of The American College surveyed nearly 1,500 retirees and found that spending money on leisure
How Much to Spend The easiest way to budget for your retirement is with a level spending plan. In this system, you simply estimate how many years your retirement will last and divide your savings by that number. It’s better to make a generous estimate rather than a conservative one. A survey of financial planners conducted by the American Institute of Certified Public Accountants (AICPA) found that outliving savings is the No. 1 concern of those approaching retirement. Underestimating your life span is an easy way for this fear to come true. Of course, a level spending plan assumes that your financial needs won’t change over the course of your retirement. If you’re the type of person who regularly meets and exceeds your budgeting goals, you can probably make it work. If not, you may want to consider a plan that allocates more money with each passing year of retirement. In the event
activities and experiences caused the lowest rate of regret. Finke calls this “social spending” and surmises that it’s favored because it encourages older adults to get out into the world and enjoy their retirements. There is no perfect plan for how to spend your savings during retirement. But there is one very wrong way to go about it, and that’s mindlessly. However you choose to spend your savings, make sure you have a plan.
Tax Season Reminders How You Can Avoid Surprises and Confusion
Revoking Your Passport While this isn’t a new law for 2019 — it was actually introduced in December of 2015 — it’s still largely unknown. With this law, the IRS has the right to request the U.S. Department of State revoke the passports of those who owe more than $51,000 in tax-related debt, including penalties and interest. This can limit your ability to use your passport or update it in the future. Additionally, your passport can be taken away when you are not in the U.S., which could turn your European vacation into an unintentional extended stay. However, the IRS does honor a few life situations pertinent enough to not merit your passport being revoked. These include you filing for bankruptcy, working through a compromise with the IRS, or being unable to pay due to life circumstances. The IRS will also give you 90 days to find a resolution to your back taxes before they request your passport application to be denied. The best way to keep your passport and avoid more debt is to seek help. Learn more about these changes and how we can assist you by visiting LandmarkTaxGroup.com.
As we gear up for another tax season, the Internal Revenue Service (IRS) is reminding taxpayers to anticipate possible changes. As exciting as that may or may not sound, you shouldn’t spend another minute dreading your taxes this season. Prepare for your tax filing with the following reminders from the IRS: Tax Withholding Changes Due to recent reforms, how much or how little your employer withholds from your paychecks could change. For millions of taxpayers, this will be reflected in a serious shortfall of their withholding, which will affect refunds and tax fees. Because of this, the W-4 form you originally filled out when you became employed by your current company may no longer reflect your wishes for withholding, but this form can be updated. Making changes to your W-4 won’t be reflected in your 2018 taxes, but you can anticipate changes for 2019. However, in order to prevent any surprises this year, the IRS is encouraging people to utilize its Tax Withholding Calculator and its informational videos and pages found on IRS.gov.
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