June 2024 Newsletter

JUNE 2024 NEWSLETTER

5 Financial Wellness Myths Surrounding Near Retirees

Myth #1: No more taxes

You may think you are no longer subject to taxes once you retire. That couldn't be further from the truth. Your Social Security gets taxed based on your income. IRA's have Required Minimum Distributions (RMDs) and are taxed if you are age 73. Capital Gains tax is required on investment profits if your income is $44,626 or more.  Gift taxes are required for gifts exceeding $17,000 per person, $34,000 per married couple. 

Myth #2: Social Security will cover your expenses

Some retirees believe Social Security benefits will be sufficient to cover their retirement expenses. Over time, housing, healthcare, food, entertainment, and other retirement expenses can experience a decrease in purchasing power while the cost of living continues to rise. This can be difficult if you try to maintain a specific lifestyle on a fixed income like Social Security.

Myth #3: Nobody works after they retire

According to the U.S. Bureau of Labor Statistics, among adults ages 65 to 74, workforce participation is expected to grow to as much as 30.7% by 2031. The 75-and-older crowd is expected to be around 11.1%. Some depend on an income to live comfortably, others need it to survive, and some work to stay busy and keep their minds sharp.

Myth #4: It is too risky to invest in the stock market

Some retirees feel that investing in the stock market may be too risky. However, there are investment strategies for retirees with a lower risk tolerance or even ways to protect your principal.

Myth #5: Retirement planning is easy, and I can do it myself

Retirement planning is not easy and as many people have learned over the years, there are many moving parts that are frequently evolving with a constantly changing world. Getting the help you need from a financial professional can be beneficial in so many ways.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.