I was reading about retirement planning and came across this article with 11 tips to help you for retirement in 2008.
3 of the ones I liked are:
Those who invest in mutual funds in taxable accounts
should check whether they are reinvesting the capital gains and
dividend distributions back into the very same mutual fund. If so,
Benedict suggests a different tack. Those investors would “be better
served investing the distributions into a more tax-efficient mutual
fund or other investment,” he said.
One reason: Investors who reinvest distributions
sometimes have to pay the income due on the distribution by selling the
very mutual fund to raise cash. That can be even more unpleasant when
the share price of the fund is below what the investor originally paid
for the shares.
Many fund companies distribute their gains this time
of year. “Find out who has or has not distributed for the year before
you buy a fund,” said Benedict. “You don’t want to be paying taxes on a
distribution from a fund that you just bought.”
9. Don’t retire yet
People should carefully consider at what age they
plan to retire and should understand how the age of claiming Social
Security will affect the size of their monthly check, said Andy
Eschtruth of the Center for Retirement Research at Boston College. “The
bottom line is that the decision of when to leave the work force has a
tremendous impact on retirement security.”
10. Working in retirement
Art Koff, author of “Invent Your Retirement” and
founder of RetiredBrains.com, said “Anyone with an accounting
background who is retired and is possibly interested in working in tax
preparation during tax season should contact the local office of the
major tax preparers or any independent firm that does tax preparation
as they start the hiring process early in the year for these temporary
jobs. Registering with temp agencies is also a good idea as some temp
firms work with these offices as well.”
Of note, sites that cater to retirees looking for
part-time, temporary and full time jobs and project assignments,
include RetiredBrains.com, RetirementJobs.com, and Seniors4Hire.org.
Koff recommends that those interested in working other than full-time
must state that on their resume.
Just because you retire doesn’t mean you should sit on the front porch waiting for your final days. There is still plenty you can and should do. You don’t need a movie like The Bucket List to get you up and motivated. Retirement is your second life. Make the most of it by planning a sound retirement.
Take the few minutes to check your 401k investments, your IRAs, your mutual funds and any other financial investments you have for your retirement.
Make an appointment to speak with a financial advisor to make sure you’re on the right track. Many retirement planning advisors now offer a free consultation before they charge you so take advantage of that and get some free advice.
Eleven retirement-planning moves that will set up a good 2008