Retirement Mistakes for High Net Worth Households | SafeMone

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Discover common retirement mistakes high net worth households make. Learn how to avoid them and secure your future. Explore safe money alternatives today! Editor’s Note: This is Part 2 of a two-part series on common retirement planning mistakes made by high net-worth investors and households. For more information on the retirement and financial challenges awaiting today’s investors, request your personalized copy of  The New Retirement Report . This resource spells out many of the risks awaiting you in retirement and potential solutions to address them. In the first half of this two-part series we addressed key mistakes that can drain your wealth in retirement. From the high-ticket expenses of long-term care and healthcare to unaddressed asset protection or liability issues, there are many potential missteps. Here are a few more retirement mistakes to avoid. Review them with your retirement planning professional or advisor to ensure your plan has strategies to address, or even avoid, these possible financial mishaps. Other Retirement Mistakes by High Net-Worth Households MISTAKE #4: Creating a huge tax time bomb by having too much money wrapped up in tax-deferred vehicles. For households accustomed to living well and having healthy spendable income, too many funds in tax-advantaged accounts can mean heavy tax burdens. Upon withdrawal, assets distributed from tax-deferred accounts are usually fully taxed as income. Also add to the mix the fact that there is a wildly varying range of different tax situations for investors, especially high net-worth households. Some states have no income tax at all. Others may exept retirement income from taxation, and still yet, many states don’t count Social Security benefits at all in their taxable mix. For that matter, a number of states don’t tax pension income, and quite a few states exempt people of senior-age from property taxation. While investors aged 65 and up get a higher standard deduction, this hodge-podge of tax scenarios can make retirement planning hard to navigate. And there is also the issue of required minimum distributions at 70.5 , which can be a “wealth drainer” especially on qualified retirement accounts with high balances. All of this means that it’s important t