STAMINA & STRENGTH

Thursday, June 8, 2017

EVEN AT 50 SAVING FOR RETIREMENT IS POSSIABLE










We do, however, recommend that everyone review their individual situation by doing some tax planning. Having a distribution plan in place can help you get the cash flow you need while lessening the tax bite on those treasured retirement dollars.

Even starting at age 50, it is possible to save more than $1 million for retirement, according to research released in May by the American Association of Individual Investors (AAII). Or looking at it another way, even for those who have paltry savings by the time their 50th birthday rolls around, adding $1 million to their nest egg from that point forward is attainable. (Many 401( k) participants save less than the 15% of pay that is often recommended, data from Vanguard and Fidelity show.).
The chart below from the AAII shows five different scenarios of how much people can accumulate by saving from age 50 to age 70:.
- You contribute the maximum to an IRA, including a catch-up contribution ($ 6,500 per year).
- You save $1,000 a month (setting aside $12,000 a year).
- You make the maximum 401( k) contribution, including the catch-up contribution allowed for those 50 or older (a total of $24,000 a year).
- You make the full $18,000 a year 401( k) contribution but skip the catch-up provision.
- You make the maximum $5,500 IRA contribution but skip the catch-up provision.
In each case, Charles Rotblut, a vice president at AAII and editor of the AAII Journal, assumed that you would earn 8% a year from a stock and bond portfolio. The 401( k) and IRA contribution limits are based on the rules for 2017.
The projected account balance at 70 years old ranges from $1.3 million for a person who maxes out his or her 401( k) including catch-up contributions to $300,000 for a person who saves only to the basic $5,500 annual IRA limit.
Of course, for people who have been half-hearted savers, putting aside as much as $24,000 a year, even with a substantial paycheck, won't be easy.
For people who don't have a history of saving, it may also require far bigger changes like downsizing housing costs or taking a second job. (Some diligent savers take similar moves in order to afford early retirement.).
" People need to look for ways to both consider and save what they can do to boost their income, whether it's getting a promotion where they're at, changing jobs, or, in some aspects, considering having a part-time job in addition to their full-time one," Rotblut said.
A recent study found that more Americans than ever believe they will need at least $1 million for a comfortable retirement. Dwelling on that target number will make the task more daunting, Rotblut said.
" Worrying about the big number they're going to reach, it's going to seem almost unattainable," he said. Instead, people should focus on finding ways to save money because "they'll realize they'll make far more progress than what they think will be possible.".
Which Retirement Accounts to Withdraw From.




 Those funds are considered ordinary income if you are taking distributions from your retirement account. Monitor how much you are taking, and if you are getting close to moving into a higher tax bracket and still need cash flow, you can take some distributions from the tax-free pile, your Roth accounts.

In the above scenario, our fictitious retired couple has three buckets of money to choose from. They have their after-tax money from the sale of the house. This money has already been taxed at some point, and any cash flow that comes from this bucket is not taxable again, except for the interest, Roth IRA accounts they funded in the years leading up to retirement.

By managing which bucket you take money out of to fund your cash flow needs, you can, to some degree, control the tax consequences of your retirement income. Any cash taken from this account is not taxable, except for tax that may be due on the interest, dividends and capital gains.

Even starting at age 50, it is possible to save more than $1 million for retirement, according to research released in May by the American Association of Individual Investors (AAII). (Many 401( k) participants save less than the 15% of pay that is often recommended, data from Vanguard and Fidelity show.).
(Some diligent savers take similar moves in order to afford early retirement.).
By managing which bucket you take money out of to fund your cash flow needs, you can, to some degree, control the tax consequences of your retirement income. Having a distribution plan in place can help you get the cash flow you need while lessening the tax bite on those treasured retirement dollars.

Report: Lakers, Clippers are 'viable destinations' for LeBron



If LeBron James expects to win more NBA championships before he retires, one of two things is likely going to have to happen — the Cleveland Cavaliers get much better, or LeBron leaves town once again.


With the Cavs on the verge of being swept by the Golden State Warriors in the NBA Finals, rumors about LeBron jumping ship are popping up. Kevin O’Connor of The Ringer says he spoke with multiple NBA sources who believe the Los Angeles Clippers and Los Angeles Lakers are both “viable destinations” for James if he chooses to not re-sign with the Cavs when he opts out of his deal next summer.


O’Connor lays out some fairly enticing arguments for why LeBron could join either L.A. team. With the Lakers, James would join a core of young players with enormous potential and could also team up with Paul George, who is reportedly leaning toward signing with his hometown team next summer.


If LeBron were to sign with the Clippers, O’Connor speculates that it would be in a scenario where he gets to play with his close friends Chris Paul, Dwyane Wade and Carmelo Anthony — aka the Banana Boat Boys. The Clippers could create the necessary cap space by working out a sign-and-trade deal for Blake Griffin, though that seems very unlikely.


One thing we do know is that LeBron is not against so-called “superteams.” He tried to create one in Cleveland with Kyrie Irving and Kevin Love, and it resulted in a championship last year. However, it doesn’t look it will be enough to knock off the Warriors going forward if they keep all of their players.


When asked on Thursday if he thinks the way the Warriors roster is composed is “unfair” to the rest of the league, LeBron did not take the bait.


“Is it fair? I don’t care. I think it’s great for our league,” James said. “Look at our TV ratings. Look at the money our league is pouring in. Guys are loving the game. Fans love the game. Who am I to say if it’s fair or not?”


LeBron already delivered on his promise to bring a championship to Cleveland. He could decide that all that matters at this point is winning as many rings as possible to try to chase Michael Jordan. Cavs fans should be encouraged by what James said last summer, but it’s fair to wonder if being dominated by a team that could keep its core together for years to come has caused him to change his stance.


Related slideshow: Best of the NBA playoffs (Provided by photo services) 




  • Slide 1 of 88: LeBron James (23) of the Cleveland Cavaliers dribbles against Terry Rozier (12) of the Boston Celtics in the first half during Game Five of the 2017 NBA Eastern Conference Finals at TD Garden on May 25, in Boston, Mass.
  • Slide 2 of 88: Jaylen Brown (7) of the Boston Celtics falls over JR Smith (5) of the Cleveland Cavaliers as he heads for the net in the second half during Game Five of the 2017 NBA Eastern Conference Finals at TD Garden on May 25, in Boston, Mass.
  • Slide 3 of 88: Jae Crowder (99) of the Boston Celtics wipes his face in the second half against the Cleveland Cavaliers during Game Five of the 2017 NBA Eastern Conference Finals at TD Garden on May 25, in Boston, Mass.
  • Slide 4 of 88: Cleveland Cavaliers forward LeBron James (23) dunks and scores against the Boston Celtics during the third quarter of game five of the Eastern conference finals of the NBA Playoffs at the TD Garden on May 25.
  • Slide 5 of 88: Cleveland Cavaliers guard J.R. Smith (5), Boston Celtics forward Jonas Jerebko (8) and Cavaliers center Tristan Thompson (13) wait for a rebound during the first half of Game 5 of the NBA basketball Eastern Conference finals, on Thursday, May 25, in Boston.
  • Slide 6 of 88: The Cleveland Cavaliers react during the game against the Boston Celtics during Game Five of the Eastern Conference Finals of the 2017 NBA Playoffs on May 25, at the TD Garden in Boston, Mass.
  • Slide 7 of 88: The Cleveland Cavaliers receive the Eastern Conference Finals trophy after their victory against the Boston Celtics in Game Five of the Eastern Conference Finals of the 2017 NBA Playoffs on May 25, at the TD Garden in Boston, Mass.
  • Slide 8 of 88: Cleveland Cavaliers' Kyrie Irving puts up a shot against the Boston Celtics during the second half of Game 4 of the NBA basketball Eastern Conference finals, Tuesday, May 23, 2017, in Cleveland.
  • Slide 9 of 88: May 23, 2017; Cleveland, OH, USA; Cleveland Cavaliers forward LeBron James (23) drives to the basket against Boston Celtics forward Jae Crowder (99) during the fourth quarter in game four of the Eastern conference finals of the NBA Playoffs at Quicken Loans Arena.find original article here
  • Slide 10 of 88: Cleveland Cavaliers' Kevin Love (0) defends against Boston Celtics' Marcus Smart (36) during the second half of Game 4 of the NBA basketball Eastern Conference finals, Tuesday, May 23, 2017, in Cleveland.
  • Slide 11 of 88: Boston Celtics' Marcus Smart (36) tries to drive past Cleveland Cavaliers' Iman Shumpert (4) during the first half of Game 4 of the NBA basketball Eastern Conference finals, Tuesday, May 23, 2017, in Cleveland.