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Month: June 2015

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Smart Retirement Investment Withdrawal Strategies

Smart Retirement Investment Withdrawal Strategies

Saving for retirement can be complicated. However, if you think the tough decisions are over once you’ve collected your final paycheck, you’re wrong. Tapping into those retirement savings takes just as much careful planning. Withdraw too much too soon and your nest egg will shrink too quickly. Use too little and you may be unnecessarily forgoing a comfortable lifestyle. Then there are the tax implications of every withdrawal decision… you get the picture.

Fortunately, we’re here to help. Consider the following money-saving withdrawal strategies. And please don’t hesitate to contact us for assistance with any aspect of retirement planning.

Strategy 1: Curbing Taxable Income

Not only does keeping taxable income low mean you’ll pay less of it in taxes, but it can also lead to savings in other areas—like healthcare. If you buy health insurance through an exchange, a lower income will qualify you for a larger subsidy. That can mean saving a bundle on your premiums. Talk to your financial advisor about the income limits and available subsidies in your state.

Strategy 2: Delaying Benefits

Even if you choose to retire early, delaying the collection of Social Security benefits until you’ve reached official “full retirement” age can be a very smart strategy—especially if you have plenty of other retirement savings. Sure, depending on your actual age, you may have to pay income taxes on withdrawals from tax-deferred accounts. However, your Social Security benefits will increase approximately 8 percent for every year you delay your claim. Talk to your financial advisor about the best time to begin collecting on Social Security.

Strategy 3: Plan for Withdrawals in Advance

Maybe you want to keep working until you’re 75. That doesn’t matter to your IRA and 401(k) accounts. As soon as you turn 70.5, you have to begin taking mandatory withdrawals from these tax deferred accounts and paying associated income taxes. If your tax bracket is likely to be higher at that time than it is when you’re in your 60s, you might be better off making larger withdrawals earlier. Your financial advisor can help you weigh the costs and benefits.

Strategy 4: Don’t do Anything without a Financial Advisor

A knowledgeable financial advisor is essential no matter what your strategy. He or she can help you move money around to reduce your future taxes on savings and earnings as well as plan your withdrawals to enable you to retain subsidies, keep your Medicare premiums low and live the retirement lifestyle you desire.

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Five Factors that Increase Senior Fall Risks

Every year, millions of older Americans are injured—or even killed—by falls. They’re the leading cause of both fatal and nonfatal senior injuries according to the Centers for Disease Control and Prevention (CDC), with direct medical costs of 34 billion in 2013. Lacerations, hip fractures and head traumas are a common result of falls, as are spine, ankle, pelvis, forearm, and hand fractures.

Fortunately, most falls are preventable. While trip hazards can be eliminated, and grab bars, railings and improved lighting in seniors’ homes can reduce their chances of falling, other factors must also be addressed. If you’re over the age of 65—or love someone who is—consider these five contributors to senior fall risk.

  1. Prescription Drugs – Many prescriptions used to treat chronic conditions common in senior citizens—including sedatives and anti-depressants—increase fall risk by reducing mental alertness, causing fainting while standing, and interfering with balance. Additionally, the more prescriptions a senior takes, the greater the likelihood of adverse interactions that can lead to a fall. Review all of your prescriptions and over the counter medications with your primary care physician and specialist doctors.
  1. Weak Muscles – As we age, we naturally begin to lose muscle tone, strength, bone mass and flexibility. These weaknesses can increase the severity of the injuries sustained in a fall, but regular exercise can improve them. Whether you’re in good health or suffer from a medical condition that makes it more difficult to exercise, talk to your physician about an appropriate workout program. Regular activity will increase your strength, muscle tone, bone mass and balance.
  1. Vision Impairment – Cataracts and glaucoma can alter depth perception, reduce visual acuity and peripheral vision, and increase susceptibility to glare. While not all age-related eye diseases are avoidable, regular eye exams can reduce the impact they have on your life, reducing your risk of a fall.
  1. Home Hazards – Loose rugs, steep stairs, slippery bathtubs, unstable furniture and poor lighting—all of these things increase tripping and falling hazards. Investing in grab bars, railings, lighting and other safety aids inside and outside your home is worth the cost if it helps you avoid even one expensive hospital stay or the loss of your independence. Keep in mind, 20 to 30 percent of seniors who fall sustain injuries that make it hard for them to live on their own.
  1. Chronic Conditions – Parkinson’s, heart disease and other chronic health conditions can also increase your risk of falling. Talk to your doctor about the disease process and steps you can take in addition to treatment to minimize associated hazards.