Some of the most expensive money you can spend is the money from your company 401(k) before it matures.
A 2015 research study conducted by Boston Research Technologies in collaboration with Retirement Clearinghouse found that 34 percent of Millennials, 34 percent of Gen Xers and 24 percent of Baby Boomers have cashed out at least one retirement account during their careers, and that "a majority of retirement plan cash-outs are unnecessary – a product of convenience rather than need." (CNBC)
We understand that circumstances in life make it tempting to dip into your company plan, but there are many reasons why this is a bad idea. One must consider the tax penalties and loss of compound interest, among other things.
It’s impossible to name just one thing that makes the Mitten State magical. It starts with the Great Lakes, followed by great communities, places to adventure, and family, to name a few. And whether you’re from the area or not, your loyalty to Michigan can run as deep as Lake Superior. It seems like everyone finds their way up north.
What about you? Do you plan on retiring here? If so, it’s important to know that the tax rules aren’t the same in every state. In recent years, Michigan has become less tax friendly to people in retirement, and according to the U.S. Census Bureau, in 2016, 23% of Michigan residents were age 60 or older. So join us as we look at the tax laws, Social Security benefits, IRAs, and 401(k) rules.