The recently passed Secure Act brought about the most significant changes to retirement planning in a decade. On this episode, you’ll learn the key points that could affect your retirement plans. Make sure to listen to the end of this episode to find out when you can participate in our webinar which will cover the Secure Act in more detail and you’ll find out what opportunities exist for retirees and pre-retirees.On this episode, you’ll learn the key points of the #SecureAct that could affect your RetirementPlans. Click To Tweet
Outline of This Episode
- [0:52] There are a couple of pieces of The Secure Act that may affect you
- [3:13] Death of the Stretch IRA
- [6:31] The Retire Ready Planning segment
- [8:55] A hypothetical case study
- [16:00] A bit about the upcoming webinar
What is The Secure Act?
Setting Every Community Up for Retirement Enhancement, that just rolls right off the tongue, doesn’t it? Maybe that’s why they shortened it to The Secure Act. At the end of the year, President Trump signed the Secure Act into law and it went into effect on January 1st. This gave all of us only 11 days to adjust our plans. Don’t worry too much if you aren’t up to speed just yet. There are really only 2 pieces of the Secure Act that will affect you.There are several components to the #SecureAct but only 2 will significantly affect #retirees and pre-retirees. Click To Tweet
How will The Secure Act affect you?
There are several components to the Secure Act but only 2 will significantly affect retirees and pre-retirees. The first is the death of the Stretch IRA and the second is the change to the RMD age.
The stretch IRA doesn’t really affect you but it will affect your beneficiaries. If your beneficiaries receive an IRA as part of their inheritance they must now withdraw those funds over a span of 10 years rather than over their entire life. This could greatly affect their tax rate. If you’re concerned about how the law affects your legacy planning then you’ll want to attend our webinar at the end of the month. Make sure to listen in to the end to hear the details on how to attend.
The second way The Secure Act may affect you is if you are under age 70. If you turn 70 in 2020 or later your required minimum distribution age will increase from 70 ½ to 72.
How to reduce savings withdrawal rates in retirement
For most of us, our biggest worry is how to live off of our savings in retirement. That’s why it is important to me to help you find opportunities to reduce the amount of money coming out of your retirement portfolio. There are 3 main ways people can reduce their withdrawal rate in retirement.
- Apply for Medicare
- Apply for Social Security
- Pay off debts
Living off retirement savings can be scary
When you first make that leap into retirement and begin solely living off of your savings you may have major anxiety. You know that the maximum safe withdrawal rate is 4%, but maybe you’re taking out 8%. Don’t panic just yet, instead listen to a case study that I present so that you can better understand how retirement withdrawals work. It may just help you sleep at night.
Connect with Benjamin Brandt
- Get the Retire-Ready Toolkit:https://retirementstartstodayradio.com/
- Follow Ben on Twitter:https://twitter.com/retiremeasap
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