Changes in Retirement Planning Due to COVID-19
WHAT YOU NEED TO KNOW
Watch out for bear markets. A bear market is when investment prices drop by 20% or more. If you make withdrawals while stocks are down, this can reduce the number of years your stock portfolio has. If you are planning to retire in the near future, you should carefully consider how to avoid reducing your stock portfolio. The best way to survive a bear market is to “play dead.” This means that you should put a large portion of your portfolio in money market securities, certificate of deposits, or U.S. Treasury bills.
The pandemic caused a lot of people to rethink their retirement plans. Some are thinking about retiring earlier, while others are delaying retirement. There have been changes within the retirement landscape because of the pandemic. Whether you want to retire earlier than planned or work longer than expected, here is what you need to know. Wait to claim Social Security benefits. It can be financially beneficial to delay taking these benefits until you are 70 years old. This is because, at this age, the monthly payout will be the highest. Retiring and starting Social Security doesn’t have to be done at the same time. If you’re planning to retire early, it may be tempting to take these benefits out earlier. Instead, you can wait until you hit the maximum age requirement and focus on tax planning tactics, such as Roth conversion.
should calculate your retirement numbers with a lower expected return on investment.
What if tax laws change? Both federal and state taxes could change in the future. There are a few strategies you can use to prepare yourself in case this occurs. The best way to save on taxes is by paying taxes. It’s best to pay income taxes at 37% than have thresholds be lowered and rates increased in the future. You can also lower your overall taxes by switching your IRAs to Roth IRAs. The Roth conversion helps spread income taxes over several years. Have any questions about retirement planning or about finances? Allow DuPont Wealth to assist you! Call us at 614-408- 0004 . We will be happy to help!
Expect lower returns. To predict what the annual return of
investment funds will look like for the next 10 years, the current yield of a bond is a good place to look. The current yield is less than 1.5%. Some calculators who specialize in retirement income predict that the bond will return to 5%. But in any case, you
SUDOKU
CHICKEN AND LEEK FILO PIE
Inspired by GoodHousekeeping.com
INGREDIENTS
3 oz unsalted butter, divided 2 large leeks, finely sliced 2 large carrots, finely chopped
14 oz chicken stock, warmed
chicken, cut into chunks
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2 tsp Dijon mustard
2 tbsp chopped fresh parsley 12 sheets frozen filo pastry, thawed
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3 tbsp heavy cream 12 oz cooked
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1 tbsp flour
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DIRECTIONS
1. Preheat oven to 350 F. 2. In a pan over low heat, melt 1 oz butter. 3. Add leeks and carrots and cook for 15 minutes, until softened but not colored. 4. Stir in flour and cook for 1 minute. 5. Gradually add chicken stock, stirring until sauce is smooth, then let simmer for 10 minutes. 6. Stir in mustard and heavy cream, then add cooked chicken and parsley. Transfer to a large ovenproof dish. 7. In a pan, melt remaining butter. 8. Put a single filo sheet on a board and brush with melted butter. Scrunch up pastry sheet and place on top of chicken mixture. Continue until pie is covered. 9. Bake for 20–25 minutes, until the filo is golden and chicken mixture is bubbling.
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