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27 Jun 2019

The unexpected downsides of early retirement By Graison Dangor

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Post by MoneyRadio Staff

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

The unexpected downsides of retiring early
Clients aiming to retire early should be wary of potential downsides , according to the author of this article in CNBC, who retired at age 24 with $3 million. Early retirees are likely to suffer from identity crises, doubt their decision and may be treated as misfits by others. They may also not be as happy as they anticipated and could experience severe boredom, according to the article.

How much do seniors have in their 401(k)s?
Average Americans aged 65 and older hold about $192,877 in their 401(k) plans while the median value is around $58,035, according to a Vanguard report cited in this article in Fox Business. Income, age and job tenure have the biggest impact on 401(k) account balances.

Common IRA mistakes clients make
It might be tempting for a client to borrow from their IRA or even sell property to it, but if they do they could be penalized, according to an article in Forbes. Other costly mistakes include contributing more than the maximum amount, not accounting for the income cap on Roth contributions, and not taking required minimum distributions on time. It is also a bad idea to use IRA assets as loan collateral because of the hefty interest involved, the article says.

Clients may not be aware of these retirement costs
Clients could put their retirement plans at risk if they fail to prepare for Medicare premiums and deductibles — as well as long-term care costs, according to this article in the Motley Fool. If clients are stashing money in a 401(k) or traditional IRA, remind them that they will need to pay income taxes on the money they withdraw during retirement. They may not have quite as much cash to spend as they think.

Graison Dangor is an associate editor of Financial Planning. Follow him on Twitter at @graisondangor.

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.

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