5 Tips to Turning on Your Retirement

By Brent Shaw, Modern Woodmen, Fraternal Financial | m.brent.shaw@mwarep.org

More and more people have been asking, “Okay, I’m retired. Now what?” While this is an exciting time for most, stressful topics can still linger. Balancing having enough money to last and using your nest egg to enjoy your Golden Years can be made easier with these tips.

  1. Know the Rules
    Just as important as how much you have saved is how you properly use those funds. If your retirement is in a Traditional IRA or a company’s group retirement plan, like a 401k, you will eventually be required to take minimum distributions from your account. The balance of your pre-tax retirement accounts and your life expectancy is used to calculate what the IRS calls the Required Minimum Distribution, or RMDs. To avoid a massive 50 percent penalty from the IRS, you will have to start taking your RMDs the year you turn 72. * Due to the COVID-19 pandemic and economic slide, Congress has suspended all 2020 RMDs, and you may even be able to return distributions you have already taken this year. The rules can change, so work with your tax or financial professional to stay up to date on what best suits your accounts.

To read more, pick up a copy of the September/October issue of LiveIt magazine.