Many people think that retirement involves doing nothing. In reality, if you want to make sure that you avoid legal and financial complications, substantial consideration must be made during the retirement period. This involves handling Medicare issues, filing for Social Security, and navigating tax and distribution-related nuances. This article reviews some important issues to consider when reviewing retirement issues.
# 1 – Aim for a 5% Return
Even people with a large amount of savings discover that they end up having much less after paying withdrawal taxes. The best way to plan around taxation issues is to aim for a return of about 5% from your investments. While it can be tempting in retirement to focus on a conservative portfolio of assets, it is in most people’s best interest to diversify their portfolio.