The year ends with bumpy conditions: an aging bull market, slowing economies, political dysfunction, trade uncertainty and tightening financial conditions, to name a few. These can be distracting or give you reason to pause. However, the New Year offers new beginnings and promise.
Good or bad, change happens. The gold, orange and red aspen leaves glow against a background of green pines and blue skies. The Cubs beat the curse. And we have a new President. There are also a handful of changes to Social Security for 2017. And similar to the good or bad of the change in seasons — a new champion or leader — we’ll adapt and react. Here is a summary of five SS changes and some planning implications to discuss with your family and trusted advisors.
Saving for retirement is tough enough. You’ve got to earn a living, sock a portion away on payday, invest it wisely, and emotionally weather the periodic market sell-offs. However, life’s surprises shall come your way – job loss or change, a major medical bill, education costs and others – and may cause (or tempt) you to tap your retirement savings early. The purpose of this article is to discourage you from creating pre-retirement leakage from your 401(k) and IRA account balances which can cost you up to 25 percent.