Youth in Retirement

Investing, Insurance, and Health

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RETIREMENT? WHAT NEEDS TO BE DONE FOR A SUCCESSFUL RETIREMENT

If one does not plan well, he will often fail, and emphasis need to be laid to ensure that however tough it could become, one has a solid plan that needs to be made early enough to be able to enjoy life when retirement strikes.

There is always a dark cloud that hovers around making people fail to plan early enough and as such cause pain in the latter years when the time is already far much gone. But in spite of all the challenges that one may experience while planning for retirement, one thing that remains constant is pressing on and planning effectively on what the future is going to hold.

 

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Some of the things one need to take into account are to ensure that the following points have been laid down and the ways to achieve them have been identified.

  1. Making sure that realistic goals have been set- Without a set goal, one is bound to fail. The fact that retirement is about resting at home and doing nothing, this has never been practical because from experience seniors are still working hard to meet their daily needs and investing in new businesses which promote the growth of the economy.
  2. Have a budget that will support in making decisions- Budgets are sometimes hard to put in place, but it is very important to have one as you plan for retirement since it will help in knowing where to put much emphasis on and know the kind of investment one would wish to venture in upon retirement. Do not spend all the money earned during the youthful time. Invest it in savings plans and all will be well as you start retirement with some good money to keep you moving.
  3. Taking charge of any extra money that one may earn during official duties- This includes the bonuses that you during an annual event. One should make sure that such kind of money is invested in the retirement fund and this will help increase the savings that could support in investments or future use -.

Conclusion

Once the age of retirement reach, there is no option than to take it positively and move on to the next phase of life with a positive attitude but of course with great plans that will help a person become effective and relevant to the society.



Retirement Fees that you must not pay, know how to avoid

Retirement benefits come with complex numbers and rules that the fees get triggered instantly. However, people following the rules carefully accumulate account balance during retirement and also get from Social security the required money. Here are few retirement penalties that require careful planning to avoid them.

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IRA penalties for early withdrawal

  • There is early withdrawal penalty of 10 percent for IRA distributions before 59 ½ years and before age 55 401(k) distributions. This penalty is applied apart from the income tax regularly that is due on withdrawal. There are various ways to access the money early. For instance a 401(k) loan is eligible to employees so that they borrow from their vested account balance up to 50 percent and this can be up to $50,000 without tax consequences or penalties, but keep a watch for the loan fees or due, in case you are leaving your job.
  • There are exceptions to early IRA withdrawal penalty. If the money is used for paying large medical bills, first home purchase, college costs or health insurance, the penalty is not applicable. People setting up annuity regular payments from the account are not charge the penalty of 10 %.  Even specific groups can avoid penalty such as disabled people and military reserves members on active duty.
  • Roth IRA owners can also opt for early withdrawal without any penalty levied, provided they do not withdraw surpassing the contributed amount to the account.
  • Skipping minimum distribution also calls for a penalty. Withdrawals annually from the retirement traditional accounts is needed after 70 ½ years. For people who are 70 ½ and older, are expected to take RMDs and by December 31, from the traditional 401 (k), income tax is taken on each withdrawal. The penalty is on missing the minimum required distribution is 50% of the money that must have been withdrawn and adding to it is the income tax due.
  • Social security penalty for early enrollment. Starting social security at 62 years is possible, but on signing before the retirement age, your payments get reduced. It is age 66 or 67 typically. In case you start collecting at age 62 the benefits, after retirement, you will get monthly payments smaller by 25 percent and after full retirement at 67 years, it will be smaller by 30 percent. If you are between 67 and 70 years, you may suspend temporarily the payments to social security that allows earning retirement credits and you also get 8 percent social security benefit with each year before 70 years.



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