Seniors who are 70 1/2 and older should ensure that they take their first required minimum distribution from tax-deferred retirement accounts like a 401(k) and traditional IRA, according to this article on CNBC. Those who fail to take the mandatory distribution before the deadline would face a penalty equivalent to 50% of the RMD amount. "You are forced to take that money out, and you have to understand the rules. And it's very confusing," says an expert.
Clients engaged in retirement planning may be preparing for a shorter horizon, which could pose a risk to their financial security in the golden years, according to this article on Kiplinger. Maintaining a certain lifestyle, having limited investing knowledge and procrastinating when it comes to decisions could also cost retirement savers dearly. Taxes is another hidden risk that clients should address when planning for retirement.
Maximizing Social Security benefits is one way for seniors to increase their retirement income, according to this article on Motley Fool. They should also consider investing more money and looking for the right investment strategies to boost their returns. Another option is to make the most of the tax breaks offered by their 401(k) plan and other tax-advantaged accounts.
Working on a part-time basis is a great option for retirees who want to boost their income and stay active in the golden years, according to this article on MarketWatch. To get a part-time job, seniors may want to turn their hobbies and passion into an income-generating activity. For example, they may work as a food blogger if they are into cooking or a tour guide if they love travelling or exploring nature.
