RETIREMENT CORNER
As a financial planner, it’s part of my job to ask the question “What happens if you become incapacitated?” It’s not inconceivable that such a thing can occur, and the odds increase as you age. For a retiree especially, health concerns rise and mental sharpness may begin to dull. Which is why it’s imperative to address this now when you’ve had time to think your decision through rather than when it’s too late.
If you’re smart, you’ll plan ahead for such an eventuality, and one of the main tools you’ll use is the Power of Attorney....
45 percent of people who switch jobs before age 59½ cash out on their retirement plans. Perhaps sometimes this is necessary, especially if the reason why you cashed out was due to an unexpected job loss where no other sources of income were immediately available to you. Still many others do it without fully understanding the potential harm they are doing to their long-term retirement prospects. Right off the top, you’re giving up 20-40 percent of your money if you cash out on your plan to taxes and penalties. Moreover, you’re missing out on future compounding of that wealth....
The Employee Benefits Research Institute and Greenwald & Associates recently released the results of their 2016 Retirement Confidence Survey. Two statistics I found particularly interesting are highlighted from the report below. Both questions dealt with the action of saving: who has saved money and who is currently saving....
