Retirement Flashcards
1st year of retirement
spend 70-80% of last years work earnings
3.5-4.5% of nest egg
Market crash
Rachet down expenses by loss in the market
Set up solo
IRA (regular and roth)
Set up via employer
Any retirement account starting with #s (Roth or non-Roth)
Roth
after-tax, save on taxes later
income is taxed then you can contribute, better in times of growth because it avoids tax at withdrawal
can also include other assets that general capital gain
Before tax
make your contribution first and then taxed at withdrawl, defers
better if you are in a higher tax bracket NOW than in retirement
save on taxes now
Employee match
max it out
Estate planning
if you don’t define your estate, the state might do it
Do I need financial planner
Depends on your goals / experience, as well as their compensation scheme
Things to be aware
Auto dealers / repair shops
Giving out SSN / credit card
guaranteed returns
off-shore investments