New York, NY (PRWEB) October 19, 2013
Chris Hobart, the CEO of Hobart Financial Group, a North Carolina retirement planning, responds to an article published by Wealth Management on October 10th regarding retirement distributions and how to make sure retirees withdraw the right amount.
According to the article on Wealth Management titled “How to Cope with Dreaded Retirement Distributions,” tax-deferred investments like 401(k)s and other retirement accounts are meant to help people accumulate savings while they are working without having to pay taxes.
However, when the investor leaves the workforce, they have to abide by requirements set by the plan they choose. Usually this means workers will cooperate with required minimum distributions (RMDs), which are taken from IRA and 401(k) funds when retirees are about 70 years old. The article says RMDs “exist to make sure the tax benefits of these accounts don’t extend indefinitely.” They also put retirees in check because they make sure the assets are being used and are being taxed properly during retirement.
The article lists a few ways retirees can manage their RMDs more efficiently:
Chris Hobart, CEO and founder of Hobart Financial Group, a leading North Carolina retirement planning company, says retirees should make sure they manage their 401(k)s and IRAs to reduce the possibility of being heavily taxed when they actually retire.
“Many people do not know how to effectively manage their 401(k)s and IRAs when they are about to retire,” Hobart says. “Many retirees are also unaware most plans have RMDs. To make plans easier to manage, some people should consider consolidating all of their accounts if they have worked for multiple employers. It will help people more accurately track them. People must also make sure they calculate their RMDs properly to avoid being harshly taxed and penalized.”
Hobart says while RMDs can be tricky, they can also be beneficial to a portfolio. “Hiring a retirement planning advisor can help people make sense of their plans and figure out the best way to manage your investments.”
Hobart Financial Group is an independent North Carolina financial advisory firm dedicated to personalizing service with uncompromising integrity. Its focus on comprehensive, tax-advantaged plans help to provide sound preservation of capital, growing income and increased returns with reduced risk. Chris Hobart, founder of Hobart Financial Group, understands that true wealth means being able to share your life with the people you love, free from financial anxiety. Hobart Financial helps Carolinas’ retirees preserve and protect their wealth with comprehensive financial retirement planning and wealth management.