If you’re a certain age, you’ll need to withdraw money from some of your retirement accounts each year. But in 2022, the amount you must take out may be changing more than in other years – and that could affect your retirement income strategy.
If you’re going to retire in the next few years, you’ll want to start thinking about making some changes to your investment portfolio. And one area you may want to look at is whatever type of cash account you might have – because, when you’re retired, the amount of cash you have readily available may be even more important than when you were working.
If you’ve had an IRA and a 401(k) for many years, you may occasionally ask yourself some questions: “Am I contributing enough?” “Am I still funding these accounts with the right mix of investments for my goals and risk tolerance?” But here’s one inquiry you might be overlooking: “Have I used the correct beneficiary designations?” And the answer you get is important.
If you’re in the early stages of your career, you’re probably not thinking much about retirement. Nonetheless, it’s never too soon to start preparing for it, as time may be your most valuable asset. So, you may want to consider retirement savings vehicles, one of which is an IRA. Depending on your income, you might have the choice between a traditional IRA and a Roth IRA. Which is better for you?