On this episode of The Retirement Huddle podcast, Mark Howard shares some of the top retirement questions you didn’t know to ask and why the answers are so important.
How much are my tax-deferred savings going to cost me in taxes?
This is the hottest topic right now. We get so many questions about this, everything from how will taxes impact my retirement to why are bacon prices rising so rapidly (bacon is up 11.1% in the past year!).
Most people haven’t considered the fact that only a portion of the money they’ve saved actually belongs to them. A lot of it belongs to Uncle Sam.
Most people save their money in pre-tax accounts like 401ks, 457s or IRAs, but the money you put in and all the growth has not been taxed either. If you have $1 million in a pre-tax account, for example, you really only own about $650,000 of that. The rest belongs to the government.
How much can I withdraw from my savings each year?
Some people have focused so much on accumulating money that they’ve never stopped to think exactly how they’ll use those savings to create income for themselves.
The great mystery of life is we don’t know how long we’ll live. This is why the world of retirement income planning is important.
Should I still have life insurance when I’m retired?
The assumption for many people is that life insurance is no longer needed after they no longer have an income. Other people assume that they should always have life insurance to cover funeral expenses. Neither of those thoughts should be an automatic assumption.
Listen to the full episode or use the timestamps to jump to a specific section. Thanks for listening! We’ll be back for another show every other Thursday.
[1:27] – Tax-deferred savings
[4:18] – Savings
[6:08] – Life insurance
[7:40] – Medical coverage
[8:51] – Fees