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How to make it, spend it, and invest it

24 Jul 2019

Should clients use retirement savings for an emergency? By Paola Peralta

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Post by MoneyRadio Staff

Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.

Should your clients use retirement savings for an emergency?
Tapping into retirement savings to cover unforeseen expenses should be an option of last resort, as the funds are earmarked for your clients’ financial security in the future, according to an article in Bankrate. Borrowing against a 401(k) plan or taking an IRA withdrawal is essentially not entirely a wrong move because the interest they pay on the loan will go back to their retirement account. “However, you have to realize that there are consequences and penalties, and you miss out on time in the market,” according to a financial planner.

Clients might want to say ‘I don’t’ when it comes to taxes
From a tax perspective, couples may be better off staying single than getting married because of so-called marriage penalties associated with the current tax code, according to this article in The Wall Street Journal. Filing as singles could mean bigger tax savings than when clients file as married couples, especially for spouses who both earn an income. Contribution limits in a Roth IRA could also shrink for couples after marriage.

Retirees are advised to tap into their Roth accounts last to minimize hefty tax bills associated with 401(k) distributions.

How talking to family about money helps clients 
Discussing money matters with family members can be difficult, but it is integral to helping clients achieve financial wellness, according to an expert in Kiplinger. To open the topic with loved ones, clients may start with talking about bills not getting paid on time or setting up a family meeting a financial advisor. “Talking with our aging parents and our children about money and the future is critical to their financial wellness — and our own,” the expert says.

Common mistakes to avoid with clients’ retirement money
Filing for Social Security benefits early is a mistake that clients should avoid to protect their retirement savings, according to an article from Yahoo Finance. They should also avoid cashing out their retirement plans ahead of time, remaining heavy on stocks as they approach retirement and making substantial withdrawals in the early part of their golden years. Seniors should consider the impact of inflation on their income, include health care expenses in their budget and feel free to dip into their savings when needed.

Paola Peralta

Paola Peralta is a reporter with Financial Planning.

This article is suggested reading by Secured Financial Services, LLC and President and Chief Executive Officer of Secured Financial Solutions, LLC, Anil Vazirani. Please visit https://secured-financial-solutions.com/

Retire and Stay Retired Safe! Smart! Secure!

Based in Scottsdale, Arizona, Secured Financial Solutions is one of the leading financial service firms in Arizona, catering to the financial planning needs of retirees and pre-retirees.

One of the benefits you can count on when working with one of our financial advisors is an outstanding personal relationship with an advisor. As a client, you will deal directly with a financial advisor who will take the time to understand your situation, objectives, estate planning, and retirement planning needs as well as your risk tolerance. We work directly with other advisors as well as CPAs, attorneys and trustees, to ensure that the investments we make will align with your estate plans, and that you are not faced with heavy tax burdens.

You can expect Secured Financial Solutions to develop comprehensive solutions to your complex wealth management and estate planning needs. Our one-on-one approach helps you achieve your financial planning goals, including maximizing your estate, retirement planning, minimizing your tax obligation, and continuing your family legacy. Our investment advisors will work with your CPA, attorneys, and other trusted professionals to help you make intelligent choices that align with your financial and personal goals.

This article is suggested reading by Secured Financial Services, LLC and President and Chief Executive Officer of Secured Financial Solutions, LLC, Anil Vazirani. Please visit https://secured-financial-solutions.com/

Retire and Stay Retired Safe! Smart! Secure!

Based in Scottsdale, Arizona, Secured Financial Solutions is one of the leading financial service firms in Arizona, catering to the financial planning needs of retirees and pre-retirees.

One of the benefits you can count on when working with one of our financial advisors is an outstanding personal relationship with an advisor. As a client, you will deal directly with a financial advisor who will take the time to understand your situation, objectives, estate planning, and retirement planning needs as well as your risk tolerance. We work directly with other advisors as well as CPAs, attorneys and trustees, to ensure that the investments we make will align with your estate plans and that you are not faced with heavy tax burdens.

You can expect Secured Financial Solutions to develop comprehensive solutions to your complex wealth management and estate planning needs. Our one-on-one approach helps you achieve your financial planning goals, including maximizing your estate, retirement planning, minimizing your tax obligation, and continuing your family legacy. Our investment advisors will work with your CPA, attorneys, and other trusted professionals to help you make intelligent choices that align with your financial and personal goals.