For older Americans, working a little longer is less costly than it used to be
Working past the retirement age is now less costly for seniors, thanks to reforms made by Congress in 1983, writes an expert on The Wall Street Journal. “One underappreciated factor is that over the past four decades, the ‘tax’ on working late in life has been gradually going down…” writes the expert. “For aging workers facing a later-in-life retirement than their parents’ generation, this is good news. If you’re going to be working longer, at least your retirement income won’t take as large a hit.”
It’s harder for women to save for retirement. Here’s why (and what to do about it)
Compared with men, women face more challenges to build their nest egg and secure their retirement, according to this article on personal finance website Motley Fool. However, women will succeed in overcoming these hurdles with careful planning. For example, women need to prepare for a longer retirement horizon, as they are more likely to live longer than men. They will also need to set aside a bigger portion of their income, as female workers earn less than their male counterparts.
For Roth conversion fans, the tax sale is on
The new tax sale has lowered the tax rates for all the tax brackets for eight years, giving retirement investors a “tax sale” period to convert traditional IRA assets into a Roth and owe lower taxes on the conversion, writes an expert on Fox Business. “Your goal should be to convert your IRA dollars slowly enough that you don’t rise into a tax bracket that will give you heartburn, but quickly enough that you get all the heavy lifting done before tax rates go up for good,” writes the expert. “Stretch the tax liability out over the full eight years to avoid paying any more taxes than are necessary.”
For more information or questions, please contact Halbert Hargrove at hhteam@halberthargrove.com.
