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What is the advantage of retirement planning?

Updated: 8/20/2019
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Duncanpowell10

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10y ago

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Whether you are recently retired or entering the workforce, T. Rowe Price can help you achieve your retirement saving goals. Our investment products and guidance make retirement planning faster and easier.

When it comes to helping your retirement savings last as long as possible, your withdrawal strategy is just as important as the strategy you used to save. Generally, allowing tax-deferred investments to grow as long as possible is smart. Consider withdrawing from taxable accounts (mutual funds and individual securities) first. Although you may need to pay capital gains tax, typically the rate for this tax is more favorable than the ordinary income tax rate.

Next, tap into tax-deferred savings such as Traditional and Rollover IRAs. Use assets from a Roth IRA last, particularly if you hope to pass assets along to heirs. Although distributions are potentially tax-free, the Roth IRA offers some significant estate planning benefits.

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