Granite Wealth Advisors

You likely can’t time the market. Don’t try it. Not if you want to enjoy a long retirement without worrying about how much money you can withdraw from your investment accounts every month. Make a plan that fits YOU!

Financial Fact Friday Social Security's average benefits may cover just over 1/3 of household expenses! "Millions of Americans expect to rely on Social Security benefits as their primary source of income when they're retired -- or even as their sole source. Sadly, Social Security is woefully inadequate to provide for your needs without supplementary savings.... In fact, the Bureau of Labor Statistics reported mean average spending of households 65 and over was $50,860 in 2018 (the most recent year for which data is available). The average Social Security benefit, on the other hand, was just $18,036 in 2020. Even if spending stayed the same since 2018, the average benefit would cover around 35.5% of it. And it's likely that spending has increased over the past two years due to inflation. The shortfall between spending and the size of your benefit check exists because Social Security is intended to replace only about 40% of pre-retirement income -- it's not meant to be your sole source of retirement funds." (Source: Fool)

FACT or FICTION: You should stay debt free in retirement. FACT: If you can, stay debt free in retirement. The more debt you carry, the more money you throw away on interest -- money that could otherwise be used to pad your savings and get you closer to your early retirement goal. While it's OK to carry a mortgage for a long time, because that's pretty much the healthiest type of debt you might have, aim to stay away from high-interest debt that can cost you a fortune over time -- namely, credit card debt. (Source: Fool)

Under the new stimulus bill, retirees will not have to make their required minimum distributions (RMDs) for 2020. Normally, retirees age 72 and older are required to withdraw a certain amount from their 401(k) or traditional IRA each year. This also applies to those who turned 70-1/2 in 2019, because these retirees would have to start taking RMDs in 2020. The SECURE Act that passed in December changed the age retirees have to start taking RMDs to 72. Traditional IRAs and 401(...k)s are tax-deferred, meaning you don't pay taxes when you make the initial contribution, but you do owe taxes when you make withdrawals. The IRS wants its money eventually, so if you haven't begun withdrawing from your retirement account by the time you hit those key ages, RMDs require you to start. (Source: Fool) See more

"The CARES Act, the legislation just signed into law, contains plenty of provisions for those saving for and living in retirement. But experts say those who can take advantage of the new law have lots to consider. The law temporarily loosens the rules on hardship distributions from retirement accounts, giving people affected by the crisis access of up to $100,000 of their retirement savings without the usual 10% penalty. The law also doubles the amount 401(k) participants can take in loans from an account for the next six months to the lower of $100,000 or 100% of the account balance. IRAs don’t permit loans." (Source: USA Today)

Through these challenging times, you can still plan for a successful retirement. Contact us, today!

Financial Fact Friday The 2019 tax filing deadline is July 15, 2020 The Treasury and IRS have announced that they will extend the 2019 tax filing deadline to July 15, 2020. The IRS expects to continue to process refunds as normal. The IRS typically issues nine out of 10 tax refunds within 21 days or less from acceptance with e-file and direct deposit the fastest way to get a refund. This deferment also applies to tax year 2020 estimated tax payments previously due on April... 15, 2020. (Source: Intuit) See more

FACT or FICTION: I should claim Social Security right away! FICTION: The true question is, where does it fit into your overall retirement plan? Your Social Security benefits are calculated based on your earnings during your 35 highest-paid years in the workforce. From there, you'll be entitled to your full monthly benefit if you file for it at full retirement age, which is either 66, 67, or somewhere in between, depending on when you were born. You can also file for Social Security early -- as early as age 62 -- but your benefits will be reduced for life for each month you claim them ahead of schedule. And on the flip-side, you can delay benefits past full retirement age and boost them by 8% a year in the process, up until age 70. (Source: Fool)

Rethinking your retirement date due to COVID-19? While the stock market can be fantastic when saving for retirement, it can also be unpredictable. So even if you have a thorough plan for your future and know exactly when you want to retire, you may need to adjust those plans. Depending on what your savings currently look like and how close you are to your expected retirement age, you may need to postpone retirement by a few years. Consider your savings goal, then think about... how long it might take to reach that target. If your current savings aren't too far off from your goal, you may be able to supercharge your investments over the next few years as the market recovers and still be able to retire on time. But if your savings have been hit hard and you were hoping to leave your job within the next year or two, you may be better off saving for a few more years before you retire. Contact us today to discuss your plan. (source: Fool) See more

Wealth Wednesday Tip #288: Social Security benefits NOT impacted by COVID-19 The SSA noting on its website that direct-deposit payouts will continue as scheduled. Mailed checks should arrive as per the norm for April and May, assuming no local post office closures, though the agency does encourage its recipients to go to the United States Postal Service website to learn more, and also suggests beneficiaries sign up online for direct deposit. (Source: Fool)

There are some opportunities during this unprecedented time. Individuals who turned 70 last year would have had until April 1 of this year to make their first required minimum distribution from their retirement accounts. The coronavirus bill, which just passed, includes a measure that waives so-called RMDs from 401(k) plans, IRAs and other retirement accounts for 2020. If you already took the distribution, you won’t be getting additional relief, according to the bill. (Source: CNBC)

Have you been sitting at home and wondering about your retirement plan? Take this time to get a second look at your overall plan, we are here to help. Contact us, today.