Final steps for clients planning to retire in 2020


Seniors who are planning to retire next year are advised to take a few steps to make sure their planning works as expected, according to this CNBC article. These clients are advised to create a budget, factor in the tax liability on their retirement income and shore up their emergency fund. Seniors will also need to review their exposure to investment risks, pay down debt and save for health care costs and other unforeseen expenses.

401(k) moves to make next year
Working clients who want to maximize their employer-sponsored 401(k) plans next year are advised to act now and start investing in the account, according to this Bankrate article. They are advised to rebalance their 401(k) portfolio to stick to their target allocation and consider funding a Roth 401(k) if their plan offers such a feature. “With the Trump tax law due to sunset in 2025, we are facing

higher rates in the future. It could be an excellent time to utilize the Roth 401(k) option and take advantage of the lower rates now,” an expert says.

All parts of retirement must be in sync
Seniors who want to secure their post-career life are advised to ensure that all parts of their retirement plan will work together, writes a CFP in Kiplinger.

A comprehensive retirement plan should not only have an income strategy, an appropriate asset allocation and a plan for health care, but also include estate planning tools and tax-saving strategies.”If you don’t prepare a long-term plan, taxes could take a sizable chunk out of your savings,” he writes.

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