required minimum distributions

The Best Way to Save for Retirement

January 30, 2014

Retirement+Blog+Image-l32dmThere are two rules of thumb that are often preached by Financial Professionals when advising clients about retirement savings. The cardinal rule seems to be saving as much as possible in qualified retirement plan accounts, which are generally exempt from tax. Also, the interest earnings and compounding in these qualified retirement accounts are exempt from further government taxation, allowing these plans to generate more return compared to traditional investment vehicles. Investment professionals further advise that retirees delay the withdrawal from these qualified accounts, in order to benefit from the much higher rate of compounding as no taxes are deducted until withdrawals are made. (more…)