Related Services - The following companies and services offer a wide variety of financial programs to assist you with handling your debts. Consolidate your bills with a debt consolidation loan or use a debt management or credit counseling service for help with your credit card bills and other payments.
- Credit Debt Consolidation - Do you simply have too many credit cards and other bills? Review this directory for useful information and compare a list of service providers that may be able to help you.
- Debt Management Credit Counseling - Having trouble keeping up with your monthly credit payments? Compare debt management companies in this online list that can try amd help you get a grip on your personal financial situation.
- Personal Loan Companies - These (typically) smaller loans are most often made available on an unsecured basis. Essentially, your property property or home will not used as security in order to obtain financing. The underwriting decision will usually be based upon your credit history and ability to make repayment according to the terms of the loan agreement.
A Special Guide for Seniors and Families
Helping Your Money Last... After Your Last Paycheck
IRAs, 401(k)s and Other Retirement Savings Plans: As with your Social Security and pension benefits, you may want to delay tapping into your retirement accounts as long as possible so they can continue to grow to cover unexpected medical costs in the future or to protect the inheritance for your heirs. However, if you need to supplement your income, Individual Retirement Accounts (IRA) and other retirement savings can be a good source.
Before you start withdrawing money from your retirement accounts, most financial planners suggest setting a target annual withdrawal rate. Make it low enough to avoid depleting these funds too quickly. You can fine tune your withdrawal strategy each year, preferably with the guidance of your financial or tax advisor. For example, if your personal situation changes, you can adjust how much you should withdraw.
Also review your retirement portfolio — your mix among stocks, stock mutual funds, CDs (certificates of deposit), bonds and so on — to be sure it's well-diversified. (For ideas about how to rebalance your portfolio as you age, see Retirement Strategies for All Ages: A "To-Do" List.)
Another caveat: If you have retired, every year after age 70 ½ be sure to take out at least the minimum required distribution from your tax-deferred retirement savings plans (except Roth IRAs) to avoid large IRS tax penalties. (If you are still working at 70 ½ or later, you do not need to start taking minimum distributions from your employer's plan until April 1 of the year following the year you finally retire.)
"Remember, you only have to withdraw the money, you don't have to spend it," said Heather Gratton, an FDIC Senior Financial Analyst. "If you don't need the money you can reinvest it somewhere else, such as in a bank savings account." She added that, because each person's situation is different, it's best to discuss your strategy with your tax or other advisor.
|
Fall 2005 |
Different Ways to Afford Retirement |
Social Security and Pension |
Retirement Savings Plans | |
FDIC Consumer News is published by the Federal Deposit Insurance Corporation
FDIC Consumer News is produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices. It is intended to present information in a nontechnical way and is not intended to be a legal interpretation of FDIC or other government regulations and policies. Mention of a product, service or company does not constitute an endorsement.
Find current and past issues of FDIC Consumer News at http://www.fdic.gov/consumernews. Refer to this same index to locate the issues that are specially formatted for being reprinted in any quantity.
To receive an e-mail notice about each new issue of FDIC Consumer News posted on the FDIC Web site, with links to stories, follow instructions posted at www.fdic.gov/about/subscriptions/index.html.
Last updated on 3/23/2006