One of my favorite topics is financial and retirement planning.
Regardless of where you’ve heard it, it seems that most experts agree that the majority of us have about 40 productive years in life before we start to approach retirement. As Ed Slott, PBS presenter and author of “How to Parlay your IRA into a Family Fortune,” says, it’s hard for the average person to figure out the Retirement Puzzle. Many of us have enough trouble making money, let alone saving money, investing money, keeping and protecting money, and a few even have problems giving money away, like the Warren Buffets’ and the Bill Gates’ of the world.
But as Ed points out, you need to have a plan, and you need to begin with the end in mind. He goes on to talk about the Silent Retirement Killers:
- Saving Money
Although this may be hard for some of you to believe, the good news is that these are all under our control.
The Largest Expense: Taxes
First, let’s take a look at our number one expense: Taxes. We should all try to move our money from forever taxed accounts to never taxed accounts. Two of the best ways to do this is with IRA accounts and life insurance.
Take the Roth IRA—it may make more sense to convert your IRA to a Roth right now. Pay the tax now. It may be better to pay tax on the seed instead of on the crop. If you’re like me, you believe taxes today are probably lower than they will be in the future. Plus, I would rather pay the tax on a lower balance today, than a larger one in the future. …read more