The 4 Elements of Money: How You Withdraw Money Part Four
IN OUR FINAL INSTALLMENT OF “FOUR ELEMENTS OF MONEY,” we are discussing withdrawing funds. Of all the topics we’ve covered, this one is the most overlooked aspect of successful financial management. Taking money out of investments and selling assets is not
as straightforward as a trip to the ATM. You need to put the same thought into withdrawing money as you do into making, saving, and investing it. In the simplest terms, withdrawal is when you remove funds from an account like a 401(k) or pension. The two most
tax status. If you are in a tax-deferred retirement plan, you pay taxes when you withdraw funds. The lower your tax bracket, the less you will pay, so you want to withdraw when your tax bracket is lower than when you invested. Tax- exempt accounts, like a Roth IRA, allow for withdrawal of principal with no tax payment because you’ve already paid the tax when you deposited the funds. Selling assets is another form of withdrawal, including real estate. Of course, you may choose to pass on your assets to future generations or make donations to nonprofits, but that decision is yours to make. You can’t approach financial planning exclusively from a front-end perspective. If you don’t consider how you will withdraw funds, you could end up losing hard earned gains. Withdrawal may be the last “Element of Money,” but it’s certainly not the least important.
important factors to consider when doing this are 1) minimum amounts, and 2) potential penalties. For some accounts, you need to be a certain age to withdraw money without incurring an additional tax penalty. For others, you will need to withdraw a minimum amount every year. This is known as a Required Minimum Distribution (RMD). RMDs should always be withdrawn before taking money from other accounts.
Another consideration when it comes to withdrawing funds is
Train Your
DAD’S WHISKEY BURGER
BRAIN!
Celebrate Dad all month long with a burger he’s sure to love!
DIRECTIONS:
1. Cook bacon until crisp. Remove and cool. Reserve 2 tablespoons bacon fat. 2. In a large skillet, combine olive oil and bacon fat, then add onions. Cook over low heat. Add salt and turn onions often for 30–40 minutes until caramelized. 3. Place whiskey and chopped garlic in a shallow dish and add hamburger patties. Marinate for 15 minutes, then flip and marinate another 15 minutes. 4. Grill burgers over medium-high heat until cooked to desired doneness. 5. Add two slices of cheese to each burger in the last minute of grilling. 6. Put hamburgers on buns, then top with a large spoonful of caramelized onions. Top with bacon.
• 4 (6–6 ½ ounce) hamburger patties • ¼ cup whiskey • 3 garlic cloves, chopped • 4 strips bacon • 8 thick slices INGREDIENTS:
cut in half, and thinly sliced • 2 tablespoons olive oil • 2 tablespoons
reserved bacon fat
• 1 teaspoon salt • 4 hamburger buns
American cheese
• 2 large Vidalia onions, peeled,
www.AnnVanderslice.com | 3
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