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The Retirement COLLAB Blog

What is a 72t Withdrawal and is it Right For Me?

This post was last updated on June 24, 2023, to reflect all updated information and best serve your needs.

Whether you’re retiring early or your financial circumstances shift unexpectedly, a “72t” withdrawal strategy might be useful. Knowing the full arsenal of penalty-free withdrawal options can help you make your money work for you regardless of what life throws at you.

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What is a Deferred Compensation Plan?

If a business wants to hire and retain top-performing employees, it needs to offer substantial benefits. While options like healthcare and paid time off are enticing, nothing is quite as appealing as tax breaks. High-earning workers typically want to save as much money on taxes as possible while maintaining investment opportunities. 

Fortunately, that’s accomplished through deferred compensation plans. These plans can come in many forms and offer specific advantages (and potential disadvantages). This article will dive into how these plans work and why they can be so attractive. 

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What Are Alternatives to Traditional Life Insurance?

Not everyone can qualify for a traditional life insurance policy. Depending on your health and lifestyle, an insurance underwriter might be reluctant to approve your application for a policy.

If you have only applied to a company or two, don’t give up on a traditional life insurance policy yet. Every company has different standards that they follow, and something that disqualifies you from one might not disqualify you from another. 

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17 Countries Where You Might Be Able to Live on Social Security Alone

Retirement should be fun, and make life a bit more simple. You shouldn’t be struggling to live off of the money you have. 

How do you expect to get by after retiring? You may only rely on a small income from your social security. 

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What Are the Different Types of Investment Asset Classes?

Many investors consider diverse investment portfolios desirable because they reduce the overall risk inherent to investing. One of the primary ways to diversify your portfolio is to invest in different asset classes. Before you can do that, though, you need to know a little more about what they are. 

While even the most diverse investment portfolios aren’t immune to risk entirely, risk reduction of any amount can help provide you with peace of mind, particularly when you’re investing as a way to support yourself through retirement.

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How Much Can a 401(k) Loan Actually Cost You?

Only 32% of Americans are investing in 401(k) plans. Even though 59% of American companies offer these plans to their employees, many U.S. citizens opt out of one. If you work for a company that offers a 401(k), it is in your best interest to sign-up, especially if you want to live comfortably after you retire. 

While having a 401(k) is a great investment, people go through rough patches and need additional financial support to help pay for expensive situations. If you have a 401(k), you can get a loan to help you with your finances. Before applying, we want you to know how much a 401(k) loan will actually cost you. 

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What is a 1031 Exchange?

Real estate owners and investors use the 1031 exchange as a way to build wealth by deferring the capital gains tax. For those unfamiliar, the IRS requires investors to pay taxes on the value of sold investments when that investment realizes a profit. Real estate and other investments are subject to capital gains taxes. 

Named after IRS Section 1031, the exchange has many different variables. All investors must understand the ins and outs of Section 1031 before performing an exchange. It comes with many rules, such as the type of property and certain time frame restrictions. 

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Our Favorite Solo 401k Calculators

Saving for retirement is a big deal. The average American will spend nearly a million dollars between the time they retire and their death. Social Security payments won’t cover those expenses, so having savings and investments is essential. 

One of the most common retirement plans is the 401(k). It’s a benefit that some jobs offer. You and your employer generally get some sort of tax advantage, which makes it a popular choice.

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What are the Required Minimum Distribution (RMD) rules for 401(k)s?

 This post was last updated on April 30, 2023, to reflect all updated information and best serve your needs.

Retirement accounts grow from pre-tax (deductible) contributions during employment. During retirement, account withdrawals, or distributions, are then taxed as ordinary income. To many entering retirement, it would make sense to let these accounts sit, accruing tax-deferred value to further build their savings and/or inheritance to pass on.

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What are the Required Minimum Distribution (RMD) rules for IRA's?

 This post was last updated on April 30, 2023, to reflect all updated information and best serve your needs.

The IRS established required minimum distribution (RMD) rules on IRAs and similar tax-deferred savings plans to eventually collect on the taxes previously deferred. RMD rules require you to begin making withdrawals from certain retirement accounts when you reach age 73.

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