Have you ever thought that saving too much money for retirement could be a problem? In reality, saving too much money is never a problem; however, when you have a lot of money, you often have to pay a lot in taxes—which can be a problem for some investors.
Many investors do an excellent job of saving substantial amounts in pre-tax vehicles like 401(k)s and IRAs. Once they reach retirement and need to start withdrawing the money, these withdrawals are taxable as ordinary income. The investor is taxed on every dollar taken out; therefore, they might need to withdraw $120,000 to $130,000 for every $100,000 they want to spend.
William G. Lako, Jr., CFP®, is a principal at Henssler Financial and a co-host on “Money Talks”—your trusted resource for your money, your future, your life—airing Saturdays at 10 a.m. on AM 920 The Answer. Mr. Lako is a CERTIFIED FINANCIAL PLANNER™ professional.
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Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.