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New Direction of Retirement Portfolio

If you’re like most baby boomers, you might be worried that your retirement dollars won’t last you for the rest of your life. You recognize the uncertainty of those times and that you’re more vulnerable than you had previously believed. 85% of people between the ages of 55 and 70 rely predominately on social security as their source of income. Some of you are also fortunate enough to have a traditional pension but this is certainly an exception rather than the rule. Now, many of you likely also depend on retirement dollars that are taxable.

Here’s an interesting fact: more than half of retirement income goes to basic living expenses. If you want to break free from this terrible situation, you have to consult with a financial professional and develop a written plan. You can’t do this alone. Can you imagine trying to navigate through the policies that are set up of Medicare and social security changes alone while also trying to make sure that your assets are protected, that your income is safe guarded? It’s like trying to sail a ship without an experienced captain at the helm.

That being said, there are a few things I can suggest that will help you take your retirement dollars in a better direction. First, know the tax code. There are a number of tax exceptions that, if taken advantage of, can significantly improve your ability to maintain an income for life. For example, if retirement is in the distance, consider putting your retirement dollars in a Roth IRA. While there is a limit to how much you can  deposit per year, this stream of retirement income will not be taxed when you decide to draw on it. Just following this one tip can help lower your tax bracket and allow you to live a more comfortable lifestyle without paying more taxes as a result.