Both are important, but how you approach them is very different. When you are working, your income is relatively stable and you may not have control over your income sources. As a result, finding deductions and tax credits to reduce your taxable income is paramount.
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Upon retirement, the more control you have over your income sources, the more likely you will be able to reduce your taxes. Tax Managed - Includes standard brokerage accounts with tax-efficient investments like index funds. As you can see, reducing taxes is an excellent reason why retirement planning is important. Life hands you a lot of important questions as you get older. For example:. Does it make sense to pursue a new degree or professional path late in your career?
Knowing where you are with your retirement plan gives you essential context to make big decisions with confidence. Making better financial and life decisions is another major reason why retirement planning is important. Mismatched financial priorities, high levels of debt, and the inability to work toward a common financial goal all cause marital strife. When you and your spouse are on the same page with retirement planning, you eliminate some major sources of discord in your marriage.
Take money out of the retirement equation and you can focus your efforts on more exciting decisions—such as where you want to retire. Hiring a financial advisor who can provide objective, non-emotional counsel may do wonders for your marriage. Maintaining a healthy relationship with your spouse can be a great reason for why retirement planning is important.
Most were laid off or forced to leave their jobs, and a smaller number had to leave work prematurely to care for an ill or aging parent or spouse. You might not have your nest egg completely built up, but having money set aside for retirement gives you more options and time to adjust your plans if you need to retire early.
A comprehensive retirement plan includes saving for medical costs and potential long-term care costs. A good retirement plan not only keeps you from being a burden to your kids, it gives you the resources to be an amazing grandparent. Even if your grandparenting goals are a bit more modest, having adequate income means you can visit more often and be present for all their milestones and special events. It gives you the resources to buy those special birthday gifts or help cover the costs of their college tuition.
Most people cut their living expenses in retirement but continue their habits of charitable giving, according to a recent study. We see this a lot with our clients. Financial planning for retirement can optimize your charitable giving three ways:. It helps provide the income you need for charitable giving throughout your life.
It ensures your estate plan aligns with your legacy goals. It allows you to reduce your tax burden, if appropriately structured. While beyond the scope of this article, a qualified charitable distribution strategy can be a powerful strategy to help maximize your charitable donations and reduce taxes! Download Now: Essential retirement checklist for more helpful tips and considerations to retire with confidence - new for ! Few things are more frightening than the thought of outliving your resources.
Retirement planning is important because it can help you avoid running out of money in retirement. As a Sales Manager, Marsha provides her staff with the support and guidance needed for their growth and development while providing her clients with the financial and insurance advice they need. Skip to main content. Partners Galleries Training Materials Contact. You are here Home Blogs toni-ann. What is Retirement Planning? The Importance of Retirement Planning The reality is that individuals are living longer and as such, it is important that we plan for the years in which you can no longer work.
Here are six 6 important points to remember about retirement planning; Ensures money is available upon retirement for everyday expenses for circumstances that may occur either health wise or wealth wise in the future. Enables an individual the ability to be able to meet the needs of family members who may be dependent on them even after retirement either for education, medical expenses and or other monthly expenses.
Ensures financial independence in that persons will not need to depend on anyone financially if their retirement planning is spot on. With change in lifestyle, the average life expectancy has increased and so persons will need more funds for their future. Most importantly, persons may not have the zeal to work for long and so retirement planning needs to be done at an early stage. Steps to Retirement Planning Ascertain when you want to retire - Knowing how long you have before retirement will definitely have a big impact on how an individual invests.
Calculate your mortgage, medicine insurance , utilities, groceries expenses M. Being aware of these costs helps an individual create a realistic budget especially during times of uncertainty.
Think about your monthly income - Knowing about ways to convert savings into actual income during retirement is essential. Retirees who receive a cheque every month for a set amount from a pension or annuity have shared that they maintain a happier lifestyle in comparison those who did not have a pension or annuity.
Learn about your healthcare options — Retirement age normally exposes individuals to a lot of non-communicable diseases such as stroke, cancer, heart disease just to name a few and as such, it is important for an individual to be aware of the healthcare options available to them either through the public or private system, how much it will cost and what these healthcare options will cover. Plan for the good - With solid, realistic planning, you can start to think about all the things you want to do and how to get there.
Will you actually be able to afford to live on a houseboat or see the Pyramids? Including things you dream about doing in your monthly planning and yearly goals will make the process seem like less of a chore and more of a means to an end: joy and freedom. Just start - Knowing retirement could last 20, 30, or more years, the best time to start planning is today. Begin thinking about all the ways you can maximize your savings and supplement retirement options with monthly streams of income.
Considering an annuity can ensure a more solid monthly footing — and make your retirement years more blissful. Only half of the workforce have a Retirement Plan. Annually each custodian comes out with their own schedule for when tax documents s and any correction documentation will be available to clients.
If you do not receive your form s by mid-March, please contact our Client Service team at clientservices1 purefinancial. You can also download your forms by logging into the website The stock market has gone wild! Or, more accurately, pockets of the stock market have gone crazy.
Previously beaten-down companies like GameStop, AMC, and Blackberry have soared in , accompanied by eye-popping gains and jaw-dropping volatility. Why is it happening? And what does it mean for your finances? Read on to learn more. Your information is secure. Ask them on air. Ask your question below or call us directly at Join us for a financial planning course designed to help you make knowledgeable decisions and prepare for your future.
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Retirement Classes Enrolling Now! The Average Life Expectancy Continues To Rise The first reason you need to kick-start your retirement planning is the simple fact that people are now, on average, living longer than ever before. Why is Retirement Planning Important Today? Financial Planning. Alan Clopine. The Outlook for Inflation and What to do About it.
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