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4 Common Money Hassles for Retirees


4 Common Money Hassles for Retirees

Retirement is supposed to be the time when you kick back, relax, and enjoy life. Yet retired life isn't entirely worry-free; certain financial issues afflict nearly all retirees. Here are some of the money hassles you're most likely to encounter during your golden years.

If you are alive and have money, the federal government wants to collect its share – and it doesn't care if you're retired. In fact, income taxes tend to get more complicated in retirement because you no longer have an employer to take care of withholding the appropriate amount from your paycheck.

Retirees will usually have to pay estimated quarterly taxes to make up for the lack of withholding. Tax returns also tend to get more complicated thanks to issues like capital gains from selling investments, taxes on money withdrawn from IRA and 401(k) accounts, and required minimum distributions. A good tax professional with experience in such matters can be invaluable for retirees. Such a professional will probably save you more on your tax bill then he'll cost you in fees.

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Source: Fool.com


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