MAKING THE RIGHT DECISIONS AT RETIREMENT - 4 TAX AND FINANCIAL-PLANNING POINTERS

RETIRING CLIENTS face some important decisions that effect their long-term financial security. THE CLIENT DOES not have to elect the annuity offered by the company sponsoring the retirement plan and instead can shop for a carrier offering the largest monthly annuity benefit. A JOINT AND SURVIVOR annuity does not always provide maximum retirement income. A single-life annuity, with part of the increased benefit used to purchase life insurance, may significantly increase retirement income while still protecting the spouse. WHEN PART OF AN annuity benefit represents a return of aftertax contributions, an alternative safe harbor method can be used to determine the excludable amount. GROWTH-ORIENTED vehicles such as common stocks or equity mutual funds protect a portfolio against inflation.