Saving money for retirement is important, but where should you be putting that money? Today, Paula Christine is joined by CPA Marty Talty of Kopmeyer Talty to break this down and dispel some myths. Often you hear “just max out your retirement plan,” but it’s rarely that simple. There’s an old adage that you’ll be in a lower tax bracket in retirement, but Paula explains why she thinks you should plan to be in a similar tax bracket in retirement.

First, Marty explains the benefit of traditional IRAs and 401k accounts. Your money grows tax deferred, meaning you don’t pay taxes until you withdraw the funds. And that could bump up your tax bracket in retirement.

Another vehicle is the Roth IRA, where the taxes are paid up front, and it’s not taxed upon withdrawal. Marty also explains the new rules around inherited plans. Nobody wants to think about their own death, but leaving money to your heirs could be an important factor in your financial planning. Marty and Paula also explain capital gains – what is a capital gain and how is it taxed differently?

Next, we talk about non-qualified money. This is money that is liquid – you don’t need to make any requirements to access it or withdraw. Having money that you can get to immediately is so important, in the event of those unpredictable life events.

Even though every individual situation is different, Paula asks Marty for some general guidance on how to allocate your savings -how much money should be going into each of these “buckets?” And what about 401k match, if your employer offers it.

The bottom line is that a CPA, financial planner, and estate planner are all essential elements to planning your financial future. Many Americans are now living as long in retirement as they were in their working years, and you need to be prepared.

If you’d like to talk to Marty Talty at Kopmeyer Talty, you can reach him at (734) 953-8600, or find his website at https://www.kopmeyertalty.com.

And as always, you can find Paula online at https://paulachristine.com/

Or send her an email at Paula@PaulaChristine.com