Deferred compensation can be attractive as a way of deferring taxes and providing for income after you leave. But is that the whole story? There are actually other concerns you should consider before making this employee benefit part of your financial plan.
If you are lucky enough to have a pension benefit, choosing which payment option to take can be intimidating. Once you choose, you generally can't change it. Are you better off with a one-time distribution of the full value or should you take monthly payments? And, if you choose monthly, are you better off with payments that last for just your life, or that continue on for a surviving spouse? Even if you are married, the best option is not necessarily obvious. Here are some principles to help you through the decision.
Taxes can drain your retirement nest egg much faster than you anticipate. There are even some new taxes you may pay in retirement that you did not have to pay during your working years. Managing them effectively takes planning. The farther ahead you start, the more you can accomplish. It is important to get beyond the oversimplified advice to put as much in retirement plans as possible.
Many people want to stay in their homes as they grow older. Our guest discusses what your home might need for that to happen.
Are you blocked from contributing to a Roth IRA but need to add to your tax-free retirement bucket? Here's how you can still get money in there.
The main question for most people who are preparing to retire is "will I have enough?" The answer is more than just a number - it also depends on where it is.