Read on to learn more about the relationship between risk and reward, how to understand your own tolerance for risk, ways to reduce risk through diversification, and where you can look to find reputable sources of information about investments.
If you give away money or property during your life, those transfers may be subject to federal gift and estate tax and perhaps state gift tax. The money and property you own when you die (i.e., your estate) may also be subject to federal gift and estate tax, and some form of state death tax. These property transfers may also be subject to generation-skipping transfer taxes. You should understand all of these taxes, especially since the passage of the Economic Growth and Tax Relief Reconciliation Act of 2001 (the 2001 Tax Act); the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Act); the American Taxpayer Relief Act of 2012 (the 2012 Tax Act); and the Tax Cuts and Jobs Act. The recent Tax Acts contain several changes that make estate planning much easier.
Conventional wisdom says that what goes up must come down. But even if you view market volatility as a normal occurrence, it can be tough to handle when it’s your money at stake.
If you have a 401(k) plan at work and need some cash, you might be tempted to borrow or withdraw money from it. But keep in mind that the purpose of a 401(k) is to save for retirement. Take money out of it now, and you’ll risk running out of money during retirement. You may also face stiff tax consequences and penalties for withdrawing money before age 59½. Still, if you’re facing a financial emergency—for instance, your child’s college tuition is almost due and your 401(k) is your only source of available funds—borrowing or withdrawing money from your 401(k) may be your only option.
Have you ever stretched out the seams of a one-size-fits-all shirt only to discover that no such thing exists? Well, the same holds true for planning for your financial independence in retirement. You will find that there are many shapes and sizes as you seek a financial future that suits your goals. Join our panel of financial advisors as they discuss how CAPTRUST can help you find the plan that is the right fit for you.
This webinar is a comprehensive discussion around planning for retirement. We will discuss Social Security benefits, healthcare planning with Medicare, creating income in retirement, and asset allocation strategies.
Social Security benefits are a major source of retirement income for most people. Your Social Security retirement benefit is based on the number of years you’ve worked and the amount you’ve earned. When you begin taking Social Security benefits also greatly affects the size of your benefit.
Medicare won’t cover all of your healthcare costs during retirement, so you may want to buy a supplemental medical insurance policy known as Medigap. Offered by private insurance companies, Medigap policies are designed to cover costs not paid by Original Medicare, helping you fill the gaps in your Medicare coverage.