Money Watch: Key Retirement Planning Ages & Deadlines

Updated : Sep 21, 2019 in Articles

Money Watch: Key Retirement Planning Ages & Deadlines


USING SOME NUMBERS CAN HELP YOU PLAN AHEAD FOR RETIREMENT. TO MAKE SURE IT’S ON TRACK. TODAY WE ARE GOING TO TALK ABOUT THAT KEY RETIREMENT PLANNING WITH AGES AND DEADLINES WITH OUR MONEY EXPERT. THE FIRST WHAT YOU WANT TO MAKE IS THE AGE YOU ARE, RIGHT NOW, IS THE TIME TO THINK ABOUT IT ANYWAY. PEOPLE SOMETIMES ASK ME IS IT TOO LATE? I AM REALLY YOUNG, IS IT TOO EARLY, I DON’T HAVE TO WORRY ABOUT IT. RIGHT NOW, IF YOU ARE WATCHING THE SHOW RIGHT NOW IT IS A GOOD TIME TO THINK ABOUT IT. A GOOD TIME TO THINK ABOUT PAYING OFF PRODUCT — CREDIT CARD DEBT. OR ADDING YOUR COMPANY RETIREMENT PLAN. LET’S MOVE UP A LITTLE BIT, WE ARE GOING TO START WITH 50. WE ARE GOING TO GO THROUGH A
COUPLE OF AGES. WHEN YOU ARE HITTING 50, WHAT IS YOUR RECOMMENDATION? 50 IS A KEY AGE, TWO THINGS NUMBER ONE FOR A LOT OF PEOPLE IF THEY HAVE NOT STARTED TO PLAN YET THAT SEEMS TO BE THE WAKE-UP CALL. NUMBER TWO THAT IS A MAGIC AGE WITH REGARD TO THESE RETIREMENT PLANS I JUST SPOKE UP — I. THERE IS A SO-CALLED CATCH-UP
PROVISION. IF YOU ARE UNDER THE AGE OF 50 YOU CAN PUT UP TO $18,000 IN A COMPANY PLAN. BUT AT 50 AND OLDER THERE IS A 6000-DOLLAR CATCH UP AND YOU CAN PUT UP TO 24,000. WITH IRAS IT GOES FOR 5500 TO
6500. THERE IS A $1000 CATCH-UP AT AGE 50. IF YOU HAVEN’T STARTED, NOW YOU CAN ACCELERATED A LITTLE BIT STARTING AT THE AGE OF 50. HOW ABOUT 55? 55 IS AN AGE WHERE YOUR COMPANY RETIREMENT PLAN YOU MAY BE ABLE TO TAKE MONEY OUT WITHOUT A PREMATURE DISTRIBUTION PENALTY. USUALLY THE AGES 59.5, IS PROBABLY THE NEXT DATE ON YOUR LIST. AT 55, SOME RETIREMENT PLANS ALLOW YOU TO TAKE DISTRIBUTIONS. HOW ABOUT 60? LIZA 59.5, WHY IS IT 70.5. THE ANSWER IS I DO NOT KNOW, ASK THE IRS. AT 59.5 YOUR TRADITIONAL IRAS AND YOUR COMPANY RETIREMENT PLANS NOW YOU CAN TAKE WITHDRAWALS WITHOUT THE 10% PREMATURE DISTRIBUTION PENALTY. THAT’S KIND OF A MAGIC AGE WHERE YOU HAVE A LOT MORE FLEXIBILITY AND ACCESSIBILITY TO SOME OF YOUR FUNDS. 62, THE AGE I WILL BE
RETIRING. 622 IS THE EARLIEST YOU CAN FILE FOR SOCIAL SECURITY. THAT IS A BIG BENCHMARK. 55? ELIGIBLE FOR MEDICARE, ANOTHER BIG BENCHMARK. 70.5, THESE IRAS AND RETIREMENT PLANS OF THE WINDOW OF TIME BETWEEN 59.5 AND 70.5 IS WHEN YOU HAVE THE GREATEST
FLEXIBILITY. AT 70.5 THE GOVERNMENT INSISTS THAT YOU START TO WITHDRAW MONEY BECAUSE THEY WANT TO START TO COLLECT THE TAXES ON IT. THAT MAKES SENSE. 78.5 IS WHEN THEY ARE GOING TO INSIST I GET OFF THIS DESK. IF YOU MAKE IT THAT LONG. [ LAUGHTER] SHOULD I BRUISE, IT’S HELPFUL AND IMPORTANT TO KNOW YOU DO NOT HAVE TO WAIT UNTIL 50.
START PLANNING NOW. IF YOU ARE WATCHING RIGHT N OW, AND YOU HAVE NOT STARTED. START RIGHT NOW. IT’S ALSO GOOD TO HEAR ABOUT
59.5, 70.5. THOSE ARE ALL KEY AGES. THAT WAS REALLY GOOD. THANK YOU. YOU CAN SEE BRUCE HERE ON

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