Clint Eastwood playing "Dirty Harry" warns, "A man's got to know his limitations." This advice is particularly appropriate for financial planners and advisors who are giving advice beyond their expertise. Though I am biased because I have over 27 years of technical expertise in the IRA and retirement plan area, the lack of knowledge in this area can cost clients hundreds of thousands or even millions of dollars.
It is always beneficial if we have extra credits for surprises. We must consider the inflations when we really want to enjoy life when we get old. What we earn now no matter how big it might be, could just be enough when our time to retire comes. Focusing on this plan would require intensive process and wise planning for years. Many people know that taking this plan seriously means being persistent with the process as well. Managing a retirement is a continuous obligation even until it is already attainable. It would require the planner's patience and wise management.
It would be a waste someday during our non working days to live a life that we cannot enjoy because we don't have enough savings. We all know how hard and tedious it is to work tirelessly. We need to have a vision of ourselves harvesting the fruits of our labors. Having a pleasurable vision of our retired selves on how we will live our lives someday could help us pursue and endure our tasks. If we think of it thoroughly, it's not only us that would benefit from succeeding the plan, most especially our children. All we need are inspirations that would give reachable advantages to us.
Another time, a 55 year old retires from his company with a million dollars in a retirement plan. The advisor recommends using an IRC Code 72(t) election for the entire million dollars. Only a fraction of that money was needed for cash flow between ages 55 and 59. The result of the faulty advice was unnecessary massive acceleration of income taxes between ages 55 and 59. The appropriate response would have been to make an IRC 72(t) election for part of the IRA, not all of it.
Neither of these advisors is a bad person. As far as I know they might be wonderful spouses and loving parents. In fact, they could even be excellent money managers or product experts who have given excellent investment advice to hundreds of their clients. Where they failed, however, is not taking the time to become educated about IRAs and retirement plans or not seeking any additional help when they were confronted with issues related to IRAs and retirement plans.It also grieves me to say that these types of mistakes are all too common and that terrible advice regarding IRAs and retirement plans is routinely provided to millions of clients.Avoid These Costly IRA & Retirement Planning Mistakes - Do Your Research.If you are an advisor reading this, my suggestion, would be to read, study and attend some good seminars that will bring you up to speed on IRAs, Roth IRAs, and other retirement plans--with good information you can really add value for your clients. Excellent sources for information include books by Seymour Goldberg, Ed Slott, Robert Keebler, Natalie Choate, Gregory Kolojeski, and of course my own book Retire Secure!.
You see, everyone is so sketchy with their personal information, and so busy hiding everything so that it won't get stolen from identity thieves, hackers, or the next fraudulent scam artist that they don't always give the financial planner all the information they need to make a competent decision and come up with a workable strategy. Of course, you cannot do retirement planning unless you ask all the questions, and those questions must be answered by the client truthfully and honestly. If not, everyone is wasting their time and it would be impossible to come up with the best possible plan.
The basic information about all the insurance policies and annuities you have. Both spouses should know the names of the insurance companies they hold policies with and know how to contact them. You should have a list of all the policies and numbers written down.If you use any sort of financial advisor or retirement planner spouses should meet with that individual. Both of you should know how to get in touch with that person and know what financial decisions he or she is making.Legal Considerations.It is not just enough to know where all of the money and paperwork is.
Both of you should have the legal right to access the accounts. Read all of the documentation and make sure this is the case. If not get it changed so it will not be a hassle later on.If you are not married you should check with an attorney to see what your rights are in your state. The law can vary widely from state to state and some states may not recognize some living arrangements. Something to be aware of is that relatives could try to claim they have legal powers over your partner or his money if there is no formal legal marriage. It may pay to get married or set up a legal arrangement such as a domestic partnership to protect your rights.
It is always beneficial if we have extra credits for surprises. We must consider the inflations when we really want to enjoy life when we get old. What we earn now no matter how big it might be, could just be enough when our time to retire comes. Focusing on this plan would require intensive process and wise planning for years. Many people know that taking this plan seriously means being persistent with the process as well. Managing a retirement is a continuous obligation even until it is already attainable. It would require the planner's patience and wise management.
It would be a waste someday during our non working days to live a life that we cannot enjoy because we don't have enough savings. We all know how hard and tedious it is to work tirelessly. We need to have a vision of ourselves harvesting the fruits of our labors. Having a pleasurable vision of our retired selves on how we will live our lives someday could help us pursue and endure our tasks. If we think of it thoroughly, it's not only us that would benefit from succeeding the plan, most especially our children. All we need are inspirations that would give reachable advantages to us.
Another time, a 55 year old retires from his company with a million dollars in a retirement plan. The advisor recommends using an IRC Code 72(t) election for the entire million dollars. Only a fraction of that money was needed for cash flow between ages 55 and 59. The result of the faulty advice was unnecessary massive acceleration of income taxes between ages 55 and 59. The appropriate response would have been to make an IRC 72(t) election for part of the IRA, not all of it.
Neither of these advisors is a bad person. As far as I know they might be wonderful spouses and loving parents. In fact, they could even be excellent money managers or product experts who have given excellent investment advice to hundreds of their clients. Where they failed, however, is not taking the time to become educated about IRAs and retirement plans or not seeking any additional help when they were confronted with issues related to IRAs and retirement plans.It also grieves me to say that these types of mistakes are all too common and that terrible advice regarding IRAs and retirement plans is routinely provided to millions of clients.Avoid These Costly IRA & Retirement Planning Mistakes - Do Your Research.If you are an advisor reading this, my suggestion, would be to read, study and attend some good seminars that will bring you up to speed on IRAs, Roth IRAs, and other retirement plans--with good information you can really add value for your clients. Excellent sources for information include books by Seymour Goldberg, Ed Slott, Robert Keebler, Natalie Choate, Gregory Kolojeski, and of course my own book Retire Secure!.
You see, everyone is so sketchy with their personal information, and so busy hiding everything so that it won't get stolen from identity thieves, hackers, or the next fraudulent scam artist that they don't always give the financial planner all the information they need to make a competent decision and come up with a workable strategy. Of course, you cannot do retirement planning unless you ask all the questions, and those questions must be answered by the client truthfully and honestly. If not, everyone is wasting their time and it would be impossible to come up with the best possible plan.
The basic information about all the insurance policies and annuities you have. Both spouses should know the names of the insurance companies they hold policies with and know how to contact them. You should have a list of all the policies and numbers written down.If you use any sort of financial advisor or retirement planner spouses should meet with that individual. Both of you should know how to get in touch with that person and know what financial decisions he or she is making.Legal Considerations.It is not just enough to know where all of the money and paperwork is.
Both of you should have the legal right to access the accounts. Read all of the documentation and make sure this is the case. If not get it changed so it will not be a hassle later on.If you are not married you should check with an attorney to see what your rights are in your state. The law can vary widely from state to state and some states may not recognize some living arrangements. Something to be aware of is that relatives could try to claim they have legal powers over your partner or his money if there is no formal legal marriage. It may pay to get married or set up a legal arrangement such as a domestic partnership to protect your rights.
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