April 1, 2014 by Tom Potter
This is an excerpt from an article of the Arizona Republic, from Sunday March 23, 2014, entitled “Retirement-tax issues still vex the public”. It was written by Russ Wiles.
On a talk show he hosted, a 60 year old woman called to voice a concern she had about maintaining the value of her 401(k) from the volatility of the stock market.
The quote was:
“I would like advice on how to move all my money (from a former employer’s 401(k) plan) to a money market or into CDs,” wrote one woman in her early 60s. “I will always have a house payment and cannot afford to lose any of the amount in my 401(k).”
This is a very, very fundamental indication that the primary funding mechanisms for retirement plans are flawed and kept prisoner by the brokerage segment of the financial services industry.
Also, included is the taxation problem of REQUIRED MINIMUM DISTRIBUTIONS facing people after the age of 70 ½ from these retirement plans.
People in their mid–fifties, up to the age of this woman can address this issue now if they want to keep more of their money for their later years. Workers who are not in this age group that contribute to similar employer plans need to be aware of the same issue.
It is not an isolated problem and one for which I have a solution and not a temporary fix.
Category Financial News, Financial Tips | Tags: 401k, employees, Financial services, individual plan owners, phoenix az, Plans4retirement, Retirement, retirement plans, tax relief, tax time bombs, Thomas Potter