Since its inception in the 1970s, the IRA has become one of the most popular available retirement savings vehicles. Americans hold nearly $2.5 trillion in individual retirement accounts (IRAs). Those nearing retirement, between the ages of 60 and 64, have an average of $165,139 in their IRA.1 If you’re like many Americans, you’ll rely on your IRA for a significant portion of your retirement income.
One of the biggest reasons traditional IRAs are popular is their favorable tax treatment. You can take a tax deduction for your contributions to a traditional IRA. All IRAs also offer tax-deferred growth. That means you don’t pay taxes on your gains as long as the funds stay inside the account.
Is retirement part of your plans for 2018? If so, you may be busy wrapping up final projects at work and planning fun and exciting ways to fill your time after you retire. This is also a good time to take any final planning steps that could solidify your finances in retirement.
A financial professional can help you identify potential gaps and opportunities and take action. If you’re not working with a professional on your retirement strategy, now may be the time to do so. Below are four important issues to address with your financial professional before you retire:
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