Financial Focus with Robert
Q. Robert, I overheard some people talking about Social Security while getting a haircut. They were talking about taking Social Security benefits in a lump sum. I have never heard of this. Is it true? – Howard in High Point
A. Howard, yes it is true. However, it is very complicated to explain and there are plenty of restrictions and rules that apply, but there are provisions to getting six months or more in a lump sum. It would not be for everybody and there are consequences to consider regarding future monthly payments that may be reduced depending on your circumstances. It can, however, be a benefit to a single individual who has delayed benefits and is diagnosed with a terminal illness. I strongly suggest you seek advice from a competent Financial Advisor before attempting to take the lump sum option.
Q. Robert, as I prepare for retirement I am trying to figure out the best way to start withdrawing money to cover my income needs. I have heard that it is important to withdraw some accounts first then other accounts later. What do you think is the right sequence? – Angie in Kernersville
A. Angie, I know I answer a lot of questions by saying that there is no simple answer that fits all investors. But it is the truth. Withdrawal sequencing by an investor depends on many things, but mostly on the investor’s age and tax bracket. Sometimes it may be a good idea to pull money from multiple account types during your retirement years including taxable accounts and tax deferred accounts (IRA, 401K, Roth). Normally though, preserving the tax saving benefits of your tax-sheltered investments for as long as you can is the best strategy for most people. However, keep in mind you still need to take your Required Minimum Deductions on Traditional IRA’s when you turn 70 ½ years old.
Seminar Dates – April 8 & 10
Outwest Steakhouse at 6:30pm
Robert Cooper
CRPC, RFC Registered Investment Advisor Representative / Providing Financial Planning Services in the Triad for Over 20 Years
336-993-2012 • www.coopercares.com
935-E Mountain St., Kernersville, NC 27284
Investment Advisory Services Offered Through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.
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If you would like a complimentary one-on-one consultation please contact our office at 336-993-2012.
Any comments regarding safe and secure investments and guaranteed streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Insurance and Annuity product guarantees are subject to the claims paying ability of the issuing company, and are not offered by Global Financial Private Capital.