Planning = Direction = Confidence
Often times following the loss of a spouse or the breakup of a marriage, household income is significantly impacted. You may be worried about how you’re going to make up for lost income. You worry if you’ll be able to maintain your lifestyle and keep doing the things you like to do. Other common concerns are figuring out what accounts to draw on and the tax consequences of doing so. Making the wrong decision can cost you a lot of money!
If you’re a non-spouse beneficiary, such as a son or daughter, you may be more concerned about making the money last so you’ll have it for a time when you may need it. Perhaps you would like to take a withdraw to pay off some expenses but you’re not sure which accounts to do that from and you’re concerned about triggering taxes and penalties. You need to be very careful!
By first understanding your situation and your goals, we can construct a plan that will answer questions such as:
- How will I generate the income I need?
- Can I retire? When can I retire?
- When should I start taking Social Security?
- What’s the best way to invest this money? Should I invest this money?
- If I need to take a withdrawal, what accounts should I draw from?
- What are the tax consequences?
- Will I be penalized if I take a withdrawal or invest this money differently?
- How can I make the money last?
- Do I need to retitle accounts?
- Do I need to put new beneficiaries on these accounts?
- Will there be any money left to pass on?
A good financial plan can help alleviate these concerns. Not everyone will need a financial plan and not every plan needs to be robust. That being said, when we experience significant changes in our lives, some direction and guidance can reduce stress and give us confidence in the future.