I figure Ed Slott has been asked this question a million times, “How much do I need to retire?”, but I ask it anyway. Like anything in life, the true answer is a little more nuanced. My guest, Ed Slott, is a CPA and accomplished author of financial and retirement-focused books, including his latest, The New Retirement Savings Time Bomb. As far as books about taxes and retirement planning go, his book is an easily digestible guide to the issues presented by retirement, but we talk about some of the most important concepts and issues you’ll want to keep in mind, if you want to keep as much of what you’ve saved as possible.
It’s Your Money, Keep It
So, you’re diligent at socking away money in your IRA or 401k and letting it grow tax deferred. That’s a good start, but have you considered how you’re going to pull it out when you need it? One myth Ed tries to dispel early on is the idea that you’ll be in a lower tax bracket when you retire. That may or may not be true, particularly when Required Minimum Distributions force you to start taking large chunks out at a time. Everyone will have a different situation and goal for how they want to use their money and direct their estate, but in speaking with Ed, he helps to illuminate the different tools and strategies you can incorporate into your plans. He’s a fan of the Roth IRA, even taking a tax hit now while tax rates are still low by converting other retirement accounts to the Roth IRA format. Insurance products too, have a place depending on your needs. The point is, there are a number of options for you to protect your assets. I hope you’ll find our discussion enlightening and a first step toward putting a plan in place to help you keep more of what you’ve worked so hard for.