Race to Retirement

June 27, 2017

One of the biggest races in America is the Kentucky Derby. People from all around the country gather to watch the nation’s strongest horses compete. Just like the Kentucky Derby, your retirement is one big race… only your competing against yourself. Just as jockeys and trainers train for years before the Kentucky Derby, you should be planning your retirement years in advance. However, there are a few things that can change the course of your retirement, such as: lower interest rates, changes in tax plans, Social Security income being reduced, and losing your pension.

As people plan for retirement, it is inevitable that something will happen to change their plans. When something like this happens, it doesn’t mean you’re out of the race. .At Ashton Associates, we believe that we can help our clients regardless of their financial position and get them on track. That is the great thing about meeting with advisors. Unlike a retirement calculator, we can give you individual help and advice to overcome any road blocks and create a plan that is personalized just for you.


Losing Your Pension

What if you’re informed today that you’re losing your pension? Losing your pension is a real scenario. These days, it is rare to find businesses that provide pension plans for their retirees; however, it is still common for government employees to receive pension plans. Many corporations will “allow” (or force) their employees to opt out of this income stream for a lump sum of money. That’s when they come to our office looking for financial help. Often time this lump sum is larger than retirees expect, and they need help learning how to turn these funds into an income stream and self-fund their retirement. Don’t let losing your pension, derail you from your retirement goals and dreams.


Taxes and Your Retirement

What do you need to know about taxes and your retirement account? At 70 ½, you will be required to pay a Required Minimum Distribution (RMD) on your 401k and IRAs. Fortunately, you have different options to help make RMDs easier to swallow and to ease the pain of taxes.

  1. Qualified Charitable Distribution

Find a charity in your area! Since the money your taking out has to be spend anyway, give it to a charity and you don’t have to report that income as taxable.

  1. Vacation

RMDs are required of everyone after 70 ½. Instead of dreading it, you can put those RMDs towards a fun vacation or spending time with grandchildren. Enjoy your retirement!

It’s never too late to start planning for your retirement.  Just like in the Kentucky Derby, preparation is key when it comes to retirement. There will be changes in the economy and in your personal finances, but stay focused; keep talking to your planner. It’s about being in the winner’s circle at the end of the race, which is a successful and happy retirement.

If you would like to learn more about annuities and retirement planning, contact Ashton and Associates at questions@retirementbrothers.com.