By Robin Crouch
All the hard work you put into saving for retirement is starting to pay off. How long will your nest egg last? Retirement planning doesn't end when you retire. . .
Either way, if you were age 70 ½ or older in 2013, you had to take a required minimum distribution (RMD) from your IRA or other Qualifed Plans for 2013. Your RMD is the minimum amount you must withdraw from your qualified account(s) each year. You can withdraw more than the minimum amount but all is taxable and must be reported on your federal income tax return. You are ultimately responsible for calculating and withdrawing the amount of your RMD although your IRA custodian or retirement plan administrator may help you with the calculations.
A 2010 study by the Employee Benefit Research Institute found that 41 percent of Americans in the lowest pre-retirement income level will run short of money after 10 years of retirement. After 20 years, 29 percent of people in the second-highest income level will run out, as will 13 percent in the highest income level.
Think you won't reach 90 years of age? You don't want to make that mistake! Estate planning is an ongoing process and our financial team at Cooper and Adel can assist you with income planning, minimizing income tax, charting your social security benefits for maximum income as well as stretching and protecting your retirement dollars.