Retirement Income Planning
By Saghir A. Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live securely with dignity and fulfill their religious and moral obligations towards charitable activities)
Following these guidelines could help you maintain a steady flow of income in your nonworking years. (Continued from last week)
Another thing to consider is changes to the RMD age as outlined in Secure Act 2.0: The Consolidated Appropriations Act of 2023 included an update to the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. With this law, the RMD age increased to age 73 in 2023 and will increase to age 75 in 2033. If you turn age 72 in 2023, your RMD is not due until 2024.
Some next steps to consider:
Planning for income in retirement:
- Explore your vision for your non-working years.
- Identify your essential and discretionary expenses.
- Inventory potential sources of income in retirement.
- Identify and create a plan to help fill any income gaps.
Managing income in retirement:
- Take RMDs on time and withdraw the correct amount to avoid the costly excise tax.
- Periodically review expenses and make necessary adjustments to your spending and withdrawal strategies.
- Review your income and tax situations regularly with your financial and tax advisors.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds, or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)
