TRANSCRIPT:
Let’s talk about the four biggest mistakes I see retirees make. Hi, I’m Hunter Brockway, founder of Boca Retirement Strategies, here to help set you up for a successful retirement with more money and fewer taxes. First on the list is overpaying in taxes. Retirees often think that once they retire, their tax bill will go down. This isn’t always the case due to things like less write-offs and RMDs. You have the opportunity and possibilities to buy plan for your taxes, especially when you look out 10 plus years into the future, and you can level out your lifetime tax bill, picking up chunks along the way.
Number two is incorrect beneficiaries or not establishing an estate plan. You have the ability to write your own beneficiaries on all of your accounts, including even a banking account. Many people are shocked when I tell them that they can put a beneficiary on their bank account to avoid the bank account going through probate. By not having a beneficiary or not having an established estate plan, your legacy could be left up to the judgment of others. And what might have been a nice legacy could turn into lawyers fees and probate costs.
Number three is rollovers. When people retire from their place of work and they have something like a 401k plan, they’d want to roll that over with their new investment advisor to an IRA. Well, if they just roll it over on their own or their advisor makes a mistake, they could simply mischeck a box or have a check sent incorrectly to the person instead of to their new custodian, that could be a taxable event that could make their entire rollover a taxable distribution and you would get taxed on the full amount of what you’ve saved up for retirement. And then worse yet, if you roll that into an IRA, you’re going to end up paying taxes again when you pull the money out. So you’re being taxed twice on that.
And the fourth item I see is overconfidence. The overconfidence that you’ve been doing it yourself for a while and you don’t think you need a second set eyes on your plan. You can sit down with us at Boca Retirement Strategies. We’ll put a second set of eyes on your plan, no cost or obligation, and ensure that all of your strategies and potential pitfalls are avoided. If you have any financial questions, you can email them to us at contact at BocaRetirement.com or contact us through our website at BocaRetirement.com. I’m Hunter Brockway, founder of Boca Retirement Strategies. Enjoy your successful retirement and thank you for watching. Bye.
