Photo by rawpixel on Unsplash
Adding money to your IRA or retirement account is the relatively easy part of accumulating assets in tax-deferred retirement plans. The hard part comes later in life when money comes out of those accounts.
Get it right and you will enjoy (figuratively speaking anyway) the lowest possible tax bill. Get it wrong and the taxes and penalties can be hefty.
According to the IRS all IRA owners, and many 401k owners as well, must begin taking Required Minimum Distributions (or RMDs) by April 1 of the year afterthe year they turn 70 ½.
Failing to do so could result in a penalty of 50% of the RMD amount. This is in addition to any tax you may owe on that distribution and any interest you might have incurred by not taking your RMD when you should have.
Here is how it works:
Last week I wrote about what it means to be an Ed Slott trained IRA advisor. Since then, I have learned that Ed Slott’s program “Retire Safe and Secure” will air on our local, Twin Cities Public Television stations this weekend!
If you want to learn how to avoid the most common tax mistakes people make with their retirement accounts, or why a Roth IRA is so important, or how to take your IRA from “forever taxed to never taxed” you will want to watch or record Ed’s show this weekend.
Ed Slott has been a huge supporter of Public Television for many years and is one of PBS’ all-time largest fundraisers. His programs have raised over $50 million in donations supporting PBS stations across the country. This weekend you can watch him on your local station.
Times and dates are listed below. Check with Twin Cities PBS for more information or click here.
- Retire Safe & Secure with Ed Slott | Friday, Jun 8 at 6pm TPT LIFE
- Retire Safe & Secure with Ed Slott | Saturday, Jun 9 at 11:30am TPT 2
- Retire Safe & Secure with Ed Slott | Saturday, Jun 9 at 9:30pm TPT LIFE
- Retire Safe & Secure with Ed Slott | Sunday, Jun 10 at 3am TPT LIFE
- Retire Safe & Secure with Ed Slott | Saturday, Jun 30 at 7pm TPT LIFE
Now this is must see TV.
Looking for an Ed Slott trained “Elite IRA Advisor”? Call me at 651.379.3935 or email me directly at email@example.com
Ed Slott’s Elite IRA Advisor Group is solely an indication that the financial advisor has attended training provided by Ed Slott and Company. Ed Slott is not affiliated with Royal Alliance Associates, Inc.
IRA mistakes are expensive and often irreversible.
Imagine inheriting a large IRA and “rolling” it over into your own IRA only to find out that the IRS has a very specific protocol regarding inherited IRAs and that you got it ALL wrong.
Worse still, the financial advisor you worked with and got paid to help you, he got it wrong as well!
Oh and this mistake, it can’t be fixed.
Or how about these scenarios…
Most market forecasters predict “increased volatility, but positive returns” for stocks in 2018. However, the truth is that no one knows when the next major market selloff will occur, how long it will last or how steep it will be.
If the last few weeks have reminded us of anything, it’s that markets can change suddenly and go down quickly.
During the crash of 2007/2008, markets saw gut wrenching declines of more than 50%. Since then the S&P, Dow Jones Industrial Average and other major markets have rallied into one of the longest running bull markets of all time. But this too shall end.
If the next major market decline were to happen tomorrow, how much money could you lose in the next market crash?
To find out, read on…
Photo by Matthieu Da Cruz on Unsplash
Imagine an investment that offers you a predictable, consistent income that rises over time. One that, while not guaranteed, is reliable and has been used by countless others to generate income during retirement.
What is the source of this idyllic income stream? Dividends. More specifically, dividends from publicly traded companies or mutual funds that own them.
To learn more about what a dividend is, click here.
If you ate cereal for breakfast, drank a soft drink at lunch, and drove to the store to pick up a few things on your way home from work, odds you consumed several products that were made by companies that have been distributing cash to shareholders via dividends for many years.
Dividends might not be the sexiest investment you will ever own, but they should play a vital role in your retirement income plan.
Below are 3 big reasons why dividends should be part of your retirement income plan: