What You Need to Know About Withdrawing Money in Retirement Wealth From Wisdom Radio Highlights
Do you have a strategy in place for every withdrawal you make from your retirement accounts? Well, it turns out a lot of people don’t, and that is a costly mistake. In this month’s Wealth From Wisdom Radio highlights, co-hosts Ron Carson and Paul West discuss what you need to know about withdrawing money and how you can maximize the money you earned over a lifetime. We all know how easy it is to contribute to your IRA and 401(k). Whether you contribute through your employer or independently, it’s all relatively straightforward. Things change when it comes to withdrawing money from these accounts. It can get confusing, especially if you don’t have a strategy. Without a strategy, you can trigger an avalanche of taxes, penalties, and fees, not to
mention higher taxes on Social Security (remember it’s another account you’ve contributed to). The last thing you want is a financial surprise that could lead you to a lower standard of living. Many people don’t take the time to think about this holistically. Are you going to be one of the few who take the time to develop a holistic strategy so you only pay the minimum required by law? Or are you going to end up contributing more than you really need to? Right now, a lot of baby boomers are grappling with required minimum distributions (RMDs). It’s the amount you must take from your saved retirement funds, required by law. The first baby boomers are turning 70 1/2 — the age when RMDs kick in. The penalty
of not complying is 50 percent of what you were required to take.
When you save and sacrifice your entire life, this can be a huge blow to your savings. People pay huge penalties for skipping their RMDs. But why do RMDs even exist in the first place? Well, the IRS still wants to collect taxes. They don’t want people to put money away in tax-deferred accounts forever and never pay anything. Strategize to avoid this, just as you can avoid the many taxes and penalties attached to the account resulting from a mistake. For more strategies, click over to wealthfromwisdomradio.com to listen to the podcast dated 05/27/2017!
... Cover article continued.
PASTA WITH TURKEY AND BROCCOLI
For instance, when it comes to finances, a long-term mindset helps you weather volatility.
Earlier this year, the markets were hit with wave of volatility, which was completely normal. We witnessed one of the largest point drops in history. If you look at the big picture, though, it was far from the largest percentage drop in history. The markets are a very different landscape than they were 25 or even 10 years ago. When it comes to the financial pillar of your life, we don’t want you to worry about the short-term volatility of the markets. That’s why we do what we do. We’re here to help you navigate the ups and downs so you can focus on what’s important to you. We want you to find balance in your life. Before I sign off for the month, I do want to mention that April is Financial Literacy Month. As a member of the Society for Financial Awareness (SOFA), I like to remind everyone
INGREDIENTS •
• •
2 cloves garlic, chopped 1/2 teaspoon crushed red pepper
3/4 pound pasta (shells or orecchiette) 2 cups broccoli florets 3 tablespoons olive oil 1 pound ground turkey
• • •
• •
Salt
Parmesan cheese
INSTRUCTIONS 1. Cook the pasta according to package directions. Add broccoli when pasta is 1 minute from done. Drain both and return to pot. 2. Heat 1 tablespoon olive oil in a skillet over medium-high heat. Add the turkey, garlic, crushed red pepper, and a pinch of salt. Cook while breaking up meat with a wooden spoon for 3–5 minutes. 3. Combine turkey with pasta and broccoli mixture, adding the remaining olive oil as you stir. Serve in bowls topped with Parmesan cheese.
www.CornerstoneWealthGroup.com | 3 to do what they can to be as financially aware as possible. It’s always important to monitor your financial situation, ask questions, and stay informed. – Scott Ford
(Recipe inspired by realsimple.com)
Made with FlippingBook HTML5