15 Ugly Truths About Retirement

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You’ll Have Numerous Financial Issues to Consider

“Those nearing retirement and those that have just begun retirement face the challenge of planning cash flows for their new lifestyle,” said Scott Smith, a certified financial planner with Olympia Ridge Personal Financial Advisers in Rochester Hills, Mich.

Before you tap your IRA or brokerage account, Smith suggested creating a five-year cash flow plan, which should consider the tax repercussions of distributing from your pension, annuity, Social Security, retirement savings and even available part-time income.

“Often, these choices are made without tax efficiency in mind, and the retiree ends up paying more in taxes than they really need to,” said Smith.