5 Retirement Myths….

MYTHS about retirement income, stocks, Medicare, taxes, social security and annuities.
Know these myths early and include their information in your retirement income strategies.
1-Are stocks or bonds good for retirees?
The old 60/40 rules is dead (subtract your age from 100. If you are 60, you should only have 40% of retirement savings in stocks and move the rest to stable funds.) Better is deciding what guaranteed income you need for your basic expenses. Most of my clients need all their retirement savings to make basic income and must be kept low risk/guaranteed income. After basic expenses are met, put the rest in higher risk investments such as stocks. Puttin money in CDs or bonds can be dangerous due to the risk of inflation/interest rates/businesses. Don’t forget the 2 major corrections of the last decade!
2-Medicare will take care of all your medical needs!
True that Medicare starts at age 65 (earlier if you have a disability). Basic Medicare has a lot of loop holes, copays, and out of pocket. Supplements and Advantage plans fill in some of the holes. Don’t get mired in the maze of advertising you receive. I represent many companies and can help you find the best options for you.
3- Taxes will be lower in retirement.
As a retiree, you may have to make quarterly estimates rather than have withholding. Remember that you may have lost deductions for your mortgage interest (house is paid off), children are gone, etc. You need to start taking the required minimum distribution from your traditional IRA, dividends, bonds, etc. And taxes have been at a low and are slowly rising. What will happen during the next administration? We can only guess that rates will go up or down to take care of the deficit.
4-Social Security is all we need!
Social Security was never designed to cover all your expenses. For most it covers about 40% of your retirement income and you need to create the rest. It is not a hand out. We all contributed to SS as we worked and now come the benefits.
5-All annuities are bad!
While there are different avenues you might explore to reach your savings goal, annuities are often overlooked because they’re somewhat complex by nature. But while annuities aren’t right for everyone, they do offer some key benefits — namely, the ability to grow your money on a tax-deferred basis and generate a guaranteed, life time income steam once you’re older plus long term care like benefits. You can’t outlive our income! Perhaps the greatest benefit of annuities is the ability to take a large sum of money, invest it for the future, and avoid paying taxes along the way. I represent several companies and different kinds of annuities. I can find the best option for you!

5 Retirement Myths….
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