Remember, you may have other options when it comes to your retirement account assets.
For help reviewing your options or how to determine the strategy that’s right for you, consult your financial professional.
For information about your account, please contact The Hartford. Not sure how? Click Contact Us from this website.
By the time you retire, you may have been contributing to your employer’s retirement savings plan for years – and maybe you’re ready to start spending some of that hard-earned money. But think before you spend.
Cashing out your retirement assets means you’ll be spending money you may need in the future. And thanks to a combination of medical advances and healthier lifestyles, we’re enjoying some of the longest life expectancies in history. So while you may not consider a long life to be a retirement issue, your retirement assets may need to last many more years than you realize.
Also, with traditional qualifies plan, where the contributions are made with pre-tax dollars, every penny you withdraw is taxable at your ordinary income tax rate, not the lower capital gains tax rate. The tax rate on ordinary income can be up to 35%. Plus, if you’re under age 59 ½ when you make the withdrawal, there may be an additional federal tax 10% penalty.*
Keep in it for the long run
The best strategy may be to keep your assets in your retirement account growing tax-deferred for as long as possible. You may also want to evaluate your asset allocation strategy from time to time to make sure that the investments options you’ve chosen continue to match your retirement savings goals and your risk tolerance. It is important to make sure your savings will last your full retirement. Just because you’ve reached a retirement age doesn’t mean that your savings cannot continue to grow. Be sure to evaluate your retirement timeline carefully.