Retirement scan

Clients approaching or already in retirement should be a risk manager who focuses on risk tolerance.

Tax cuts and other policies have stirred a stronger economy, but these results could mean vulnerable financial markets in the foreseeable future.

IRS rules allow clients in certain circumstances to tap their retirement accounts before the age of 59 1/2 without a 10% penalty. But this still should be considered a last resort, an expert says.

The guideline used a specific set of assumptions: a retirement lasting 30 years with savings in a tax-deferred account and nothing left for heirs. Change just one and your “safe” withdrawal rate may differ.

Retirees will owe taxes for up to 85% of their Social Security benefits if their adjusted gross income plus nontaxable interest exceed a certain threshold.

A study notes that retirees might be experiencing the “Homer Simpson” mindset, in which they choose immediate gratification without thinking about the long-term consequences.

Among current retirees, the numbers aren't much better: 60% of them have not calculated how much health care costs impact their savings.

The order is for the Treasury Department to review rules that require mandatory distributions to begin when someone turns 70 1/2, and to make it easier for small businesses to offer 401(k) plans.

Cost of living is a key consideration, but a retiree’s goals and objectives are also important.

While proceeds from life insurance are not subject to income tax, there are other taxes that will apply. But there are steps to take to avoid those liabilities too.