Retirement Portfolio Solutions

Beware of THE RETIREMENT RED ZONE!

The "Retirement RED ZONE." This zone equates to the 10 years before and the 10 years after you choose to retire. It's crucial not to make any irrevocable mistakes in the retirement red zone as they can impact the rest of your retirement. Such decisions as:

When do you choose to start taking Social Security benefits?
When do you choose to retire?
Which options do you choose for Social Security?
If you are married, do you choose a benefit for your spouse or not?

AVOIDING POTENTIALLY IRREVOCABLE DECISIONS IN RETIREMENT

Most of the time after you make decisions regarding your Social Security, you cannot undo them. However, there are factors within your control such as your spending habits, your risk, and your retirement date: and factors outside of your control such as market returns; inflation; the economy; and unemployment.

Contact us today for your complimentary Retirement Checkup and a FREE copy of our Guide:

"Maximize Your Social Security Income - Secrets to Increase Your Cashflow in Retirement."

This guide will walk you through the hundreds of ways to turn on Social Security and help you avoid some of the most common mistakes that retirees make when claiming their Social Security benefits.

Retirement Portfolio Solutions | Estate Planning & Insurance Reviews Retirement Portfolio Solutions specializes in retirement planning, annuities, insurance reviews, long-term care, and estate planning. We specialize in providing strategies and guidance for those who are seeking a better lifestyle in retirement.

Year-end Financial Checklist:

It’s the busy holiday season and it likely sounds like a horrible time to take on more to-dos. Yet, if you start checking in with your financial situation now-ish, you could make progress on your goals before next year starts.
Everyone’s situation is different and complexities are inevitable. But here are a few tasks you might want to consider squeezing in before 2018 comes to an end.

• Take stock of your finances, including debt and savings. While it can feel painful and emotional to do so it will give you a baseline to help you decide what to do next. Then set your financial goal or goals for next year. If you need a starting place try save more this year and the year before if possible. Find ways to reduce your debt if any.

Whatever your goals are write them down somewhere and choose a starting point to try to attain them. Get specific with costs as well. Are you planning any large expenditures in 2019? Having some overall goals makes you more likely to achieve them.

• Confirm beneficiary designations: Make sure your current designations are still in line with your estate plan especially when divorce, remarriage, death, blended families etc. come into play. Any major life change means you should absolutely review your beneficiary designations.

• Max out your 401(k) and find other ways to save. Now is the time to contribute the maximum amount to your 401(k), if you have one and have the funds to do so. If you are under 50, you can contribute up to $18,500 in 2019. If you are 50 or older, you can contribute another $6,000. The perks of pre-tax contributions coming from your paycheck are reducing your taxable income, and at the same time, forcing you to save.

To save more, consider opening up a Roth IRA which allows you to put after-tax money aside that grows tax-free at a time of year where you have a good idea of your annual income.

This year, the maximum amount workers can contribute to a Roth IRA is $5,500 — if you’re younger than 50. That goes up to $6,000 in 2019.

It’s a fabulous way for anyone to save if you are under the income thresholds.

• Fund Health Savings Account (HSA): For 2018, those in high-deductible health-insurance plans can sock away as much as $3,450 before taxes. For families, the figure is $6,900, and those age 55 and older can contribute an additional $1,000.

Spend flex dollars: Unused funds in Flexible Spending Accounts are typically forfeited at year’s end, so make sure to tap them for eligible health and medical expenses by December 31st. Some plans offer a “grace period” of up to 2 ½ months to use FSA money. Other plans may allow you to carry over up to $500 per year to use in the following year. Bottom line, check with your employer to confirm your plan’s deadlines.

• Reduce capital gains taxes: Any capital losses you realize before December 31 can be used to offset your gains. If your net losses exceed your gains, you can offset an additional $3,000 of ordinary income; any losses beyond that limit can be carried forward to future tax years.

• Take required minimum distributions (RMDs): If you’re 70½ or older, you’re required by the IRS to take RMDs from certain retirement accounts by December 31—or face a penalty equal to 50% of the sum you failed to withdraw. If you turned 70½ this year, you have until April 1, 2019, to take your first RMD, albeit with potential consequences.

Whatever your goals are, be intentional about them and take action. No one plans to fail but many fail to plan. Let us help set you up for success.

Good Retirement Advice for Women...

A costly retirement mistake many women make Here's why it's often not a good move to start your retirement at the same time your husband does