While the storm may be over, many people are now feeling the financial affects of Hurricane Florence. So what happens if you decided that you need to use your IRA or 401(k) to cover the damages that insurance can't? Check out the following article by IRA expert and CPA, Ed Slot to learn more. This process can be technical or difficult to navigate for some.
To all our Wilmington friends and employers, below is a possible solution for employees now out of work due to Hurricane Florence. Stay safe!
NORTH CAROLINA DEPARTMENT OF COMMERCE
DIVISION OF EMPLOYMENT SECURITY
RALEIGH, NORTH CAROLINA
What exactly is the “sequence of returns”? The phrase simply describes the yearly variation in an investment portfolio’s rate of return. Across 20 or 30 years of saving and investing for the future, what kind of impact do these deviations from the average return have on a portfolio’s final value?
The answer: no impact at all.
Will you pay higher taxes in retirement? Do you have a lot of money in a 401(k) or a traditional IRA? If so, you may receive significant retirement income. Those income distributions, however, will be taxed at the usual rate. If you have saved and invested well, you may end up retiring at your current marginal tax rate or even a higher one.