From the age of 59 and a half when somebody can start pulling their money out of an IRA or a 401k without any penalties to the age of 70 and a half where you are required to start paying taxes and pulling money out of those accounts.
Keeping money in pocket instead of in Uncle Sam’s pocket is a good way to look at it. When you’re 70 and a half it’s required to start taking out minimum distributions every increasing Uncle Sam’s pocket.
A recent survey by the National Endowment for Financial Education found that almost 90% of Americans were feeling anxious about their money situation.
- 39% were worried about job security
- 48% worried about paying bills
- 28% didn’t know if they could pay their utilities
- 41% were worried about not having enough emergency savings
- 23% were worried about having enough saved for retirement
Even before the COVID-19 pandemic, subsequent mass layoffs, and other hardships, a U.S. Bureau of Labor Statistics study revealed that 40% of adults did not have enough cash on hand to cover an unexpected $400 expense.
Obviously, home foreclosure or auto repossession can generate a snowball economic effect on a household, but everything from medical expenses to utility bills to parking tickets can coalesce into a high degree of financial distress, causing mental and physical health problems.
If you find yourself in financial stress during this difficult time, there are a couple of ways B.O.S.S. Retirement Solutions can help.
BOSS Retirement Solutions can create a plan that makes all the difference and is not a one-size-fits-all strategy. Everybody has a different scenario that they’re dealing with. It is called a customized retirement tax audit.
You will be able to see is how to avoid paying taxes on as much as 85 percent of Social Security benefits. How to be able to avoid paying double Medicare premiums. How to coordinate the withdrawals from IRAs and 401ks or other retirement accounts.
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