Don’t Be the Woman in Last Place When Planning for Retirement

Published by Taylor Financial Group (for women)

I’ve attended so many retirement parties that I can’t help being excited for my own. Retirement is a huge life event. After years and years of hard work, it’s time to relax and spend leisurely days doing activities you love. It can really be the ultimate form of relaxation. We constantly think of all the things we would be doing if we weren’t at work (many of my daydreams entail waking up no earlier than 10:00 am!).  However, the thought of being financially unstable during retirement is scary and can cause added stress that no woman needs in her life. Often, women rely on their husbands to make those financial plans. It’s time for women to become as involved as possible.

On average, women make less than their male counterparts, and they tend to live longer than men as well.  This is why it’s important for women to begin saving and planning for retirement early on in life. It can make a huge difference in your retirement age, as well as the quality of life that you’ll have during retirement.

If you feel like you’re behind, there are a couple of things women can do to start catching up on their retirement plans, specifically in tax-related investment strategies.  One way to save is to keep a record of your business-related expenses and ask your employer to reimburse you.  Business expenses should not be coming out of your paycheck.  Moreover, the money you receive by way of reimbursement is not subject to employment taxes.

Another way to catch up and prepare yourself for financial stability in retirement is to turn IRA assets into a Roth account.  A Roth account allows your money to grow tax-free and is ideal for retirement savings.  You should also contribute as much as possible to company retirement plans and your IRAs.

Lastly, don’t make hasty investment decisions.  For instance, be wary of investing in bitcoin.  It is tempting because of how popular it has become.  But there is skepticism surrounding whether bitcoin investors made truthful disclosures about their income, an issue the IRS is looking into.  Speak to a financial advisor about what investments might be appropriate for your retirement goals.

As women, it is important that we take control of our financial future and become involved in the planning as much as possible.  The more educated and proactive you are, the more fulfilling your retirement can be.

 

For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.

Converting from a traditional IRA to a Roth IRA is a taxable event. A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first-time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.

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