It is a fact that we will reach a point in our lives where we all need to retire from our professions. You dream of a life where you will just enjoy traveling and having fun for the remainder of your life but keep in mind that there is a cost that comes with it. Remember that you won't have regular income coming in and your expenses will just keep on pouring in. This means that we need to plan on how to save our money in a systematic way in order to enjoy it later on. Most individuals ask themselves why they need to have retirement planning. This is important because you need some sort of security when you reach the age of retirement. You can start to have one as early as your twenties. If you plan your finances at an early point in your life, you are most likely to have fewer financial commitments. You will be able to have a huge bank of resources by the time you retire when you start early.
It is always beneficial if we have extra credits for surprises. We must consider the inflations when we really want to enjoy life when we get old. What we earn now no matter how big it might be, could just be enough when our time to retire comes. Focusing on this plan would require intensive process and wise planning for years. Many people know that taking this plan seriously means being persistent with the process as well. Managing a retirement is a continuous obligation even until it is already attainable. It would require the planner's patience and wise management.
For example one advisor had both a father and son as clients. The father died leaving his IRA to his son. The advisor promptly transferred the IRA from the father's name to the son's name? Sounds o.k. to you? But it isn't o.k. If you transfer an inherited IRA to a non-spouse beneficiary without a special designation like "inherited IRA of Dad for the benefit of Son" you cause immediate income tax acceleration for the IRA beneficiary. So rather than having the ability to stretch an IRA or defer taxes for forty years, the son had to pay the taxes on the entire IRA distribution the year after his father died. Using reasonable assumptions, this mistake cost the son one million dollars over his lifetime.
Both Spouses Need to be Involved.The life expectancy for the average American man is around 76 years while the life expectancy for average American woman is around 81 years. That means the average woman can expect to be on her own for four to five years in retirement. Medical experts estimate that 50% of Americans over age 85 suffer from conditions like Alzheimer's disease that leave them unable to manage financial matters.This is why both spouses need to be active in the retirement planning process.There is a strong possibility that one of you will not be able to manage the retirement investments at some point. There is also a possibility that both of you might not be able to handle the finances at some point.
Neither of these advisors is a bad person. As far as I know they might be wonderful spouses and loving parents. In fact, they could even be excellent money managers or product experts who have given excellent investment advice to hundreds of their clients. Where they failed, however, is not taking the time to become educated about IRAs and retirement plans or not seeking any additional help when they were confronted with issues related to IRAs and retirement plans.It also grieves me to say that these types of mistakes are all too common and that terrible advice regarding IRAs and retirement plans is routinely provided to millions of clients.Avoid These Costly IRA & Retirement Planning Mistakes - Do Your Research.If you are an advisor reading this, my suggestion, would be to read, study and attend some good seminars that will bring you up to speed on IRAs, Roth IRAs, and other retirement plans--with good information you can really add value for your clients. Excellent sources for information include books by Seymour Goldberg, Ed Slott, Robert Keebler, Natalie Choate, Gregory Kolojeski, and of course my own book Retire Secure!.
You see, everyone is so sketchy with their personal information, and so busy hiding everything so that it won't get stolen from identity thieves, hackers, or the next fraudulent scam artist that they don't always give the financial planner all the information they need to make a competent decision and come up with a workable strategy. Of course, you cannot do retirement planning unless you ask all the questions, and those questions must be answered by the client truthfully and honestly. If not, everyone is wasting their time and it would be impossible to come up with the best possible plan.
Is amazing how many questions a retirement planning consultant, or financial planner must ask these days to comply with all the federal and state requirements. There are what they call; "know your customer laws," and therefore the practitioner must ask all the questions and fill out all the forms. Then there are the questions that the retirement customer asks. Sometimes they are silly things such as; "should I be buying gold?"Another challenge that retirement planners and financial consultants must deal with is that they generally work for a larger firm that also has rules to stay out of hot water with the SEC and consumer protection agencies. Often this can get in the way of asset allocation when a given client wants to play it safe for their retirement, and then gets some wild hair up their rear end to go and make a silly and non-prudent financial investment decision on their own.
Both of you should have the legal right to access the accounts. Read all of the documentation and make sure this is the case. If not get it changed so it will not be a hassle later on.If you are not married you should check with an attorney to see what your rights are in your state. The law can vary widely from state to state and some states may not recognize some living arrangements. Something to be aware of is that relatives could try to claim they have legal powers over your partner or his money if there is no formal legal marriage. It may pay to get married or set up a legal arrangement such as a domestic partnership to protect your rights.
[Retirement Planners]
It is always beneficial if we have extra credits for surprises. We must consider the inflations when we really want to enjoy life when we get old. What we earn now no matter how big it might be, could just be enough when our time to retire comes. Focusing on this plan would require intensive process and wise planning for years. Many people know that taking this plan seriously means being persistent with the process as well. Managing a retirement is a continuous obligation even until it is already attainable. It would require the planner's patience and wise management.
For example one advisor had both a father and son as clients. The father died leaving his IRA to his son. The advisor promptly transferred the IRA from the father's name to the son's name? Sounds o.k. to you? But it isn't o.k. If you transfer an inherited IRA to a non-spouse beneficiary without a special designation like "inherited IRA of Dad for the benefit of Son" you cause immediate income tax acceleration for the IRA beneficiary. So rather than having the ability to stretch an IRA or defer taxes for forty years, the son had to pay the taxes on the entire IRA distribution the year after his father died. Using reasonable assumptions, this mistake cost the son one million dollars over his lifetime.
Both Spouses Need to be Involved.The life expectancy for the average American man is around 76 years while the life expectancy for average American woman is around 81 years. That means the average woman can expect to be on her own for four to five years in retirement. Medical experts estimate that 50% of Americans over age 85 suffer from conditions like Alzheimer's disease that leave them unable to manage financial matters.This is why both spouses need to be active in the retirement planning process.There is a strong possibility that one of you will not be able to manage the retirement investments at some point. There is also a possibility that both of you might not be able to handle the finances at some point.
Neither of these advisors is a bad person. As far as I know they might be wonderful spouses and loving parents. In fact, they could even be excellent money managers or product experts who have given excellent investment advice to hundreds of their clients. Where they failed, however, is not taking the time to become educated about IRAs and retirement plans or not seeking any additional help when they were confronted with issues related to IRAs and retirement plans.It also grieves me to say that these types of mistakes are all too common and that terrible advice regarding IRAs and retirement plans is routinely provided to millions of clients.Avoid These Costly IRA & Retirement Planning Mistakes - Do Your Research.If you are an advisor reading this, my suggestion, would be to read, study and attend some good seminars that will bring you up to speed on IRAs, Roth IRAs, and other retirement plans--with good information you can really add value for your clients. Excellent sources for information include books by Seymour Goldberg, Ed Slott, Robert Keebler, Natalie Choate, Gregory Kolojeski, and of course my own book Retire Secure!.
You see, everyone is so sketchy with their personal information, and so busy hiding everything so that it won't get stolen from identity thieves, hackers, or the next fraudulent scam artist that they don't always give the financial planner all the information they need to make a competent decision and come up with a workable strategy. Of course, you cannot do retirement planning unless you ask all the questions, and those questions must be answered by the client truthfully and honestly. If not, everyone is wasting their time and it would be impossible to come up with the best possible plan.
Is amazing how many questions a retirement planning consultant, or financial planner must ask these days to comply with all the federal and state requirements. There are what they call; "know your customer laws," and therefore the practitioner must ask all the questions and fill out all the forms. Then there are the questions that the retirement customer asks. Sometimes they are silly things such as; "should I be buying gold?"Another challenge that retirement planners and financial consultants must deal with is that they generally work for a larger firm that also has rules to stay out of hot water with the SEC and consumer protection agencies. Often this can get in the way of asset allocation when a given client wants to play it safe for their retirement, and then gets some wild hair up their rear end to go and make a silly and non-prudent financial investment decision on their own.
Both of you should have the legal right to access the accounts. Read all of the documentation and make sure this is the case. If not get it changed so it will not be a hassle later on.If you are not married you should check with an attorney to see what your rights are in your state. The law can vary widely from state to state and some states may not recognize some living arrangements. Something to be aware of is that relatives could try to claim they have legal powers over your partner or his money if there is no formal legal marriage. It may pay to get married or set up a legal arrangement such as a domestic partnership to protect your rights.
0 comments:
Post a Comment