Is It a Trick or a Treat? - The Prepare Institute: Preparing Americans for Retirement

Is It a Trick or a Treat?

It is Halloween week, and the main theme of Halloween is ‘trick or treat’.  It is also a main theme right now in the financial world as there are a lot of financial tools, moves, options, and strategies available that could be either a trick or a treat to your retirement plan.  So, how do you know which one it is?

In your pre-retirement and retirement years there are literally thousands of different planning moves, options, and strategies that are available.  And many of these moves and strategies could either cause you financial success or financial hardship, depending on when and how you implement them.  For example, one very popular move people make when they need money from their retirement plan before the age of 59 ½ is a 72(T).  This move will allow you to access money in certain ways from your retirement plan without getting hit with a penalty.  Now, obviously that sounds good and in some circumstances this can be a very good thing.  However, there are also circumstances where making this move could really cost you a lot of money and hurt your retirement plan.

The bottom line is, every financial tool, option, and strategy has its proper fit for where it will work successfully, and a time where it could possibly do tremendous harm to your plan.  Determining each is the difference between having a trick, or a treat in your retirement plan.  To learn more about the many different retirement planning tools, options and strategies available and where they can be a very good, or a very bad thing, visit The Prepare Institute website and find an upcoming retirement education course in your area.   

Content is for educational and informational purposes only.  It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should contact your retirement and tax professional before utilizing any of the information in this article.