Day: October 17, 2024

Wilmington, Delaware, Oct. 17, 2024 (GLOBE NEWSWIRE) — Allied Market Research published a report, titled, “Aluminum Door and Window Market by Product Type (Window and Door), Mechanism (Swinging, Sliding, Folding and Revolving), And End User Industry (Residential, Non-Residential): Global Opportunity Analysis and Industry Forecast, 2022-2031“. The global aluminum door and window market was valued at $55.8 billion in 2021 and is estimated to reach $82.1 billion by 2031, exhibiting a CAGR of` 3.8% from 2022 to 2031. 

Prime determinants of growth  

The aluminum door and window market is primarily driven by the increasing consumer preference for energy-efficient and sustainable building materials. Aluminum’s lightweight yet durable properties, with its resistance to corrosion, make it an ideal choice for both residential and non-residential applications. In addition, advancements in manufacturing techniques have improved design flexibility and reduced costs. The growing trend towards modern architecture, which often emphasizes large glass areas and minimalistic designs, further boosts demand for aluminum frames. Moreover, government initiatives promoting eco-friendly construction practices and energy conservation continue to support the expansion of this market segment. 

Download PDF Sample Copy: https://www.alliedmarketresearch.com/request-sample/A16982  

Report coverage & details: 

The window is expected to exhibit fastest growth throughout the forecast period 

By product type, the window is anticipated to experience faster growth in the aluminum door and window market due to the rise in construction of residential building which is expected to positively influence the demand of aluminum windows. Moreover, improving lifestyle of people in general and rise in trend of saving energy by letting in more and more ambient light is expected to drive the demand for aluminum windows. Moreover, manufacturers such as Andersen Corporation, Apogee Enterprises, Inc., and Bradnam’s Windows & Doors offer a wide range of aluminum windows. 

Buy This Research Report (210 Pages PDF with Insights, Charts, Tables, Figures) https://bit.ly/3YjZyRN  

The sliding segment are expected to exhibit fastest growth throughout the forecast period 

By mechanism, the sliding segment is anticipated to experience faster growth in the aluminum door and window market. The sliding mechanism is suitable for residential buildings, hotels, offices, apartments, big retail outlets, airports, and other building projects. Some of the benefits associated with this mechanism include, substantial cost savings and do not take up a larger space. Moreover, increase in popularity of this mechanism among consumers, and rise in new construction and home improvement activities are expected to further boost the market expansion. 

The non-residential segment is expected to exhibit fastest growth throughout the forecast period 

By end user, the non-residential segment is anticipated to experience faster growth in the aluminum door and window market due to the rapid rise in urbanization. Moreover, rise in global population has also positively affected the global non-residential building construction. Aluminum doors and windows are widely used in non-residential buildings, owing to their highly desirable features for places witnessing high foot fall of people. Aluminum doors and windows are strong, durable, and easy to maintain. All such features are required by a door and window installed in non-residential buildings, as they are constantly opened and closed. Hence, an increase in investments in non-residential construction projects is expected to drive the growth of the aluminum door and window market. 

Inquire Before Buying: https://www.alliedmarketresearch.com/purchase-enquiry/A16982  

LAMEA is expected to exhibit fastest growth throughout the forecast period 

Asia-Pacific accounted for the highest market share in 2021. However, LAMEA is expected to grow with a highest CAGR during the forecast period. Latin America and Middle East have a large number of developing countries with a huge potential to grow. Many countries in the Middle East are focusing on rapid development of infrastructure for boosting the tourism industry. This creates a demand for hotels, resorts, and other guests’ accommodation; thereby increasing the demand for doors and windows. 

Players: –  

• Apogee Enterprises Inc. 

• Bradnam’s Windows & Doors 

• Contractors Wardrobe, Inc. 

• Fenesta Building Systems 

• Fletcher Building Limited 

• Geeta Aluminum Co. Pvt. Ltd. 

• Hume Doors & Timber Pty Ltd. 

• Marvin Windows and Doors 

Key Strategies 

• In December 2021- Alumil launched three new products, namely SΜΑΡΤΙΑ P100 Slim, SMARTIA P200 Slim, and SMARTIA P150 Urban to enhance working circumstances such as privacy, natural sunlight, and overall appearance. 

• In July 2021- Alumil developed an advanced sliding aluminum window (S650e-Motion) that operates with electric motion. 

The report provides a detailed analysis of these key players in the global aluminum door and window. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.  

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About us:  

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.  

 We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality of data and help clients in every way possible to achieve success. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.  

Contact us:  

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My investment accounts don’t withhold taxes from my capital gains, which is causing me to owe large amounts when I file my returns. How can I mitigate this situation?

-David

As capital gains distributions are unpredictable and usually unknown until the end of the year, it can be difficult to properly plan for them. Taking proactive steps to anticipate and “prepay” your tax bill can help you avoid an unmanageable balance due in April.

Read on for more information on how to manage your tax liability throughout the year. (Looking for help with a financial question? This tool can help match you with potential advisors.)

Options to ‘Prepay’ Your Tax Bill

You have two main options for paying taxes throughout the year rather than dealing with a huge tax bill in April: adding or increasing withholding taxes from another income source, or making quarterly estimated tax payments.

A third possible option would be to contact the mutual fund generating the capital gains distributions directly and ask it about withholding. It’s possible that the company would facilitate that but not likely. As for your investment account, those institutions typically only offer withholding when you sell securities or take retirement account distributions.

Be aware that using these strategies will reduce the balance you have to pay when you file your taxes. But they won’t reduce your actual tax bill. (Looking for help with a financial question? This tool can help match you with potential advisors.)

What Are Capital Gains Distributions?

Mutual funds and exchange-traded funds (ETFs) hold lots of underlying investments like stocks and bonds. During the year, they may sell some of those investments, resulting in capital gains or losses inside the fund. At the end of the year, the fund distributes a proportional share of those sale proceeds to each investor – that’s a capital gains distribution.

As an investor, you generally won’t know what to expect in terms of capital gain distribution income until late in the year. Funds typically post information about estimated distributions and expected payout dates on their websites in November or December.

Unlike regular capital gains, which come into play when you sell an investment for more than its purchase price, you haven’t taken any action here. Your capital gains distribution is purely the result of trades that the fund itself made. So even though you haven’t sold any shares of your mutual fund, you’ll have taxable income from those capital gains distributions.

This income will be taxed like long-term capital gains, no matter how long you’ve actually owned your fund shares. Long-term capital gains tax rates are based on your overall taxable income and filing status, so this income will be taxed at either 0%, 15% or 20%.

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How Can I Deal With These Taxes?

Since you won’t know until late in the year how much you might receive in capital gains distributions, it can be tough to estimate the tax bill exactly – but you can get close enough to at least avoid IRS underpayment penalties. The IRS has safe harbor guidelines: As long as you pay at least 90% of your current tax bill or 100% of the prior year’s tax bill, or owe less than $1,000, you can avoid being charged underpayment penalties even if you end up owing.

Both methods ask you to have a good sense of what your annual income will be early in the year, which isn’t always practical. You can start with your best estimate and make adjustments during the year if needed. (Looking for help with a financial question? This tool can help match you with potential advisors.)

Begin or Increase Withholding on Other Income

If you have other income sources, such as a regular W-2 job or federal retirement income, you can request that they enough withhold taxes to cover this additional income. You can even request withholding on Social Security payments.

If you have an online account for your other income source, you can probably request or change withholding taxes right there. You’ll complete a Form W-4 (or the equivalent) and enter the amount you want withheld on the line that says “extra withholding.” For government payments like Social Security, you’ll use Form W-4V and choose the percent you want withheld. You can also stop this withholding at any time by updating your choices.

Make Quarterly Estimated Tax Payments

Once you know approximately how much tax you’ll owe, you can divide that by four and make equal estimated tax payments every quarter. You can either complete IRS Form 1040-ES and mail that with a check to your designated IRS mailing center or make your payment online at the IRS website. If you pay online, make sure you choose “Estimated Tax” for the reason and the correct current tax year.

Pro tip: When making estimated tax payments for a jointly filed tax return, make sure to use the Social Security number of whichever of you appears first on the tax return (as “taxpayer” rather than as “spouse”). The IRS system sometimes misapplies or does not apply payments properly if the other SSN is used.

Estimated tax due date payments are:

Estimated Tax Payments vs. Withholding Taxes

Be aware that there are more potential penalties associated with estimated tax payments than withholding taxes. It’s also a lot easier to manage withholding as you can set it and forget it, as opposed to remembering to proactively make a payment every quarter. (Looking for help with a financial question? This tool can help match you with potential advisors.)

Next Steps

There are two ways to avoid paying a large tax bill in April. You can withhold extra taxes on another source of income or make quarterly estimated tax payments. Either way, you’ll be spreading out your taxes over the whole year instead of coming up with a lump sum when you file your tax return.

Find a Financial Advisor

• If you have questions specific to your investing and taxation situation, a financial advisor can help. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

• Understanding your tax bill can help you make plans for your money. Whether you plan on saving for retirement, paying off college or credit card debt, or investing your money differently, SmartAsset’s tax return calculator can help you figure out how much you will get back from the government so you can plan ahead.

• Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.

• Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP.

Michele Cagan, CPA, is a SmartAsset financial planning columnist and answers reader questions on personal finance and tax topics. Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column.

Please note that Michele is not a participant in the SmartAsset AMP platform, is not an employee of SmartAsset, and she has been compensated for this article.

Photo credits: ©iStock.com/Milan_Jovic, ©iStock.com/AmnajKhetsamtip

The post Ask an Advisor: ‘How Can I Mitigate This Situation?’ My Tax Bill Is Huge Because My Investment Accounts Don’t Withhold Capital Gains appeared first on SmartAsset Blog.

Wilmington, Delaware , Oct. 17, 2024 (GLOBE NEWSWIRE) — Allied Market Research published a report, titled, “Automotive Plastics Market by Type (Polypropylene (PP), Polyurethane (PU), Polyvinyl Chloride (PVC), Acrylonitrile Butadiene Styrene (ABS), Polyamide (PA), Polystyrene (PS), Polyethylene (PE), Others), by Application (Dashboards, Engine Covers, Door Handles, Wheel Covers, Bumpers, Plug Connectors, Knobs and Fittings and Others): Global Opportunity Analysis and Industry Forecast, 2024-2033″. According to the report, the automotive plastics market was valued at $30.4 billion in 2023, and is estimated to reach $51.1 billion by 2033, growing at a CAGR of 5.4% from 2024 to 2033. 

Prime determinants of growth 

The automotive plastics market has benefited from advancements in manufacturing processes and technologies. Improved injection molding, blow molding, and thermoforming techniques have enabled the production of complex and intricate plastic components with precise dimensions and enhanced surface finishes. These advancements have allowed automakers to incorporate plastic components in various applications, from exterior body panels and interior trim to under-the-hood components and safety systems, thereby expected to boost the demand for automotive plastics throughout the forecast period. 

Download Sample Pages of Research Overview: https://www.alliedmarketresearch.com/request-sample/1650  

Report coverage & details: 

The polypropylene (PP) segment is expected to experience fastest growth throughout the forecast period. 

By type, the polypropylene (PP) segment held the highest market share in 2023 and is estimated to maintain its leadership status throughout the forecast period. Polypropylene (PP) is a thermoplastic polymer that has gained widespread use in the automotive industry due to its favorable properties and versatility. This material its excellent balance of mechanical properties, chemical resistance, and cost-effectiveness, making it an attractive choice for various automotive applications. 

Procure Complete Report (340 Pages PDF with Insights, Charts, Tables, and Figures) @ https://www.alliedmarketresearch.com/checkout-final/automotive-plastics-market 

The bumper segment is expected to experience fastest growth throughout the forecast period. 

By application, bumper segment held the highest market share in 2023 and is estimated to dominate during the forecast period. The bumper is a crucial component in modern vehicles, and the automotive plastics market has played a significant role in its evolution and widespread adoption. Plastics have largely replaced traditional materials such as steel and chrome in bumper manufacturing, offering numerous advantages in terms of cost, weight, and design flexibility. 

Asia-Pacific is expected to experience fastest growth throughout the forecast period 

Based on region, Asia-Pacific is the fastest growing region in terms of revenue in 2023. The use of automotive plastics in the Asia-Pacific region is integral to the automotive industry’s growth and sustainability. These materials offer numerous benefits such as weight reduction, cost efficiency, enhanced performance, and improved safety. As the region continues to evolve as a major hub for automotive manufacturing, the demand for automotive plastics is expected to rise, driven by technological advancements and increasing consumer expectations for quality and efficiency in vehicles. 

Want to Access the Statistical Data and Graphs, Key Players’ Strategies:  https://www.alliedmarketresearch.com/automotive-plastics-market/purchase-options  

Leading Market Players: – 

• Exxon Mobil Corporation. 

• Asahi Kasei Corporation. 

The report provides a detailed analysis of these key players in the global automotive plastics market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario. 

About Us 

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain. 

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry. 

Contact: 

David Correa 

United States 

1209 Orange Street, 

Corporation Trust Center, 

Wilmington, New Castle, 

Delaware 19801 USA. 

Int’l: +1-503-894-6022 

Toll Free: +1-800-792-5285 

Fax: +1-800-792-5285  

help@alliedmarketresearch.com 
Web: www.alliedmarketresearch.com 
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Summary

Kinder Morgan Inc. is one of the largest natural gas transmission and storage companies in North America. After going private in May 2007, it went public again in February 2011 via a $3.3 billion initial public offering. Following a late 2014 consolidation of its former operating entities, Kinder Morgan Energy Partners, L.P., Kinder Morgan Management, and El Paso Pipeline Partners, L.P., the newly consolidated company no longer has a master limited partnership structure, under which the former limited partners paid incentive distribution rights (IDRs) to KMI as their general partner.

Through its various operating businesses, KMI operates a diverse set of assets, including 82,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, refined petroleum products, crude oil, carbon dioxide, and other products, and its terminals store products such as petrol

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With interest rates likely headed lower over the next few years as the Fed embarks on a rate-cutting cycle, income-oriented investors may be looking for places to invest that can offer higher yields and attractive returns. One such option is an investment in pipeline operator Energy Transfer (NYSE: ET).

The company owns one of the largest integrated midstream systems in the U.S., where it transports hydrocarbons (natural gas, natural gas liquids, and crude) and performs other services across the midstream value chain, such as storage, gathering, processing, and fractionation, among others.

Let’s look at three reasons to buy Energy Transfer stock like there is no tomorrow.

A high yield and increasing distribution

One of the first things that inevitably draws investors to Energy Transfer is the stock’s juicy 7.8% forward yield. The master limited partnership (MLP) currently pays out a $0.32 quarterly distribution, which it plans to grow by between 3% and 5% a year moving forward.

Note that as an MLP, Energy Transfer pays a distribution, not a dividend. While similar, distributions include a return on capital that is untaxed until the units are typically sold, making them tax-deferred. However, investors do receive what is called a K-1 and must fill out some extra tax forms.

While Energy Transfer cut its distribution in half in 2020 to help repair its balance sheet, the distribution is higher today than before the cut. The company’s balance sheet is currently in good shape, with leverage (as used by rating agencies) toward the low end of its 4.0x to 4.5x target range.

At the same time, Energy Transfer’s distribution is well covered, as reflected in its over 1.8 times distribution coverage ratio in the second quarter. This is based on its non-consolidated distributable cash flow, which is its cash flow before growth capital expenditures (capex). Energy Transfer has partial stakes in a few companies, so the non-consolidated number is the cash flow it gets to keep.

Overall, Energy Transfer has a high, well-covered yield with a distribution that should continue to grow.

Growth opportunities

In addition to its nice yield, Energy Transfer has solid growth opportunities in front of it. The company has one of the midstream sector’s largest backlogs, with several projects set to go into service next year and the year after.

It plans to spend around $3.1 billion on growth projects this year. The company typically looks for at least a 12% return on its spending, which would help boost earnings before interest, taxes, depreciation, and amortization (EBITDA) by more than $370 million per year once all the projects are fully ramped up.

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Energy Transfer is also well positioned to deliver natural gas to help supply the increasing energy needs of artificial intelligence (AI)-focused data centers. AI data centers use an enormous amount of energy, and these companies need reliable, cheap, and uninterruptible energy. Nuclear energy and natural gas are the best ways to provide this.

While cloud computing companies are starting to turn to nuclear energy, most of these projects are at least several years away. Meanwhile, Energy Transfer has been signing deals with power companies to supply more natural gas based on increasing AI demand and has had discussions with cloud computing companies looking to build onsite power generation.

Taken altogether, Energy Transfer has solid growth opportunties in front of it over the next several years.

Inexpensive stock

Despite Energy Transfer’s valuable midstream system, growth opportunities, and solid financial footing, its stock trades at one of the lowest valuations in the MLP midstream space.

Typically, investors value midstream companies using an enterprise-value-to-EBITDA (EV/EBITDA) multiple. The reason for this is twofold. The first is that enterprise value takes into consideration the amount of net debt a company carries on its balance sheet. These are capital-intensive businesses, so operators in the space typically carry debt to help fund their projects.

EBITDA, meanwhile, excludes non-cash depreciation expenses that would otherwise be included with earnings. Midstream companies spend money upfront on projects through capex, and those expenses are then depreciated over the useful life of the asset. By using EV/EBITDA, the costs of the projects are captured in its debt net, while EBITDA is more reflective of the company’s current operating profitability.

Based on this metric, Energy Transfer trades at an EV/EBITDA of 8.1 times based on 2025 estimates, well below its historical levels and one of the lowest valuations in the MLP space.

The midstream MLP sector as a whole, meanwhile, trades at a pretty large discount to where it did several years ago, with the industry trading at a 13.7 times average EV/EBITDA multiple between 2011 and 2016. With the industry as a whole in better financial shape than during this period, the sector could re-rate higher in the coming years if the midstream companies can show themselves to be AI energy winners.

Overall, given Energy Transfer’s current valuation and growth prospects, together with an attractive yield and growing distribution, the stock looks like a buy.

Should you invest $1,000 in Energy Transfer right now?

Before you buy stock in Energy Transfer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Energy Transfer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $831,707!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

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Geoffrey Seiler has positions in Energy Transfer, Enterprise Products Partners, and Western Midstream Partners. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

3 Reasons to Buy Energy Transfer Stock Like There’s No Tomorrow was originally published by The Motley Fool

Thomas Nitzsche
Money Management International
404.490.2227
Thomas.Nitzsche@MoneyManagement.org

Lori Geary
Lexicon Strategies
404.551.2151
lgeary@lexiconstrategies.com

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To really build a complete retirement budget as a couple, you’ll need to take into account both potential income sources and realistic expenses. While it’s possible to come up with an estimated income or range of incomes from these figures, the expense side of the budget is equally important and potentially much more variable. Other variables include your planned retirement date, whether you have any other sources of retirement income and how you want to plan to handle hard-to-foresee expenses, such as healthcare and long-term care costs.

To get a full picture of your expenses and income in retirement, consider talking to a financial advisor.

Determining Your Anticipated Income

Since 65 is within the normal range of retirement ages, you may well plan to retire immediately. If so, you’ll have to generate your investment-based income from the $1.9 million you currently have in retirement accounts. If you were willing and able to wait a few years, this amount might grow somewhat and allow you to increase your retirement income.

More specifically, if you wait until full retirement age at 67, your Social Security benefit will also increase. However, right now, a nest egg of this size and the Social Security benefit described could generate a solid retirement income.

The 4% rule is a historic rule of thumb you can use to start thinking about how much you can safely withdraw from your retirement investments each year. It employs a conservative strategy in some markets, or overly aggressive in others, so there’s risks to following this rule on both sides. However, the same can be said for any path you might choose.

Applying this rule suggests you could withdraw 4% of your $1.9 million the first year and a similar amount, adjusted for inflation, each year thereafter for 25 years, though that doesn’t account for any potential earnings. In this limited example, that means you’d withdraw $76,000 the first year. Then if inflation is 3% the next year, your withdrawal would increase by that same amount up to $78,280.

On an annual basis, your combined Social Security benefits come to $62,400, at $5,200 a month. Combined with $76,000 from investments, your total income would equal $138,400 in year one. Depending on the lifestyle you want to maintain as a retiree, this should give you quite a bit of flexibility as a couple.

What Your Anticipated Spending Might Look Like

For many retirees, $138,400 annually is adequate income for a comfortable lifestyle. In the absence of any details on spending habits, another rule of thumb can be applied. Multiplying pre-retirement income by a percentage is one way to come up with a likely post-retirement income need. This percentage can range from 70% to 90% or higher, depending on the retiree.

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In this case, let’s assume 80% would be accurate for you and your spouse. If so, $138,400 would be sufficient to maintain your pre-retirement lifestyle if you were earning approximately $172,000 combined per year prior to retiring. If you’re used to living on more than that, you might have to cut back in retirement.

Speak with a financial advisor about retirement planning today.

Tax Considerations

Since you don’t have a Roth IRA, you’ll owe income taxes in retirement. Under 2024 tax rules (which will undoubtedly change in future years), you could use the married, filing jointly standard deduction of $32,200 available to married couples when both spouses are 65 or older. This would reduce your taxable income to $106,200.

Since your taxable income is more than $34,000, you’ll owe taxes on 85% of your Social Security income. This means just 15%, or $9,360, of your Social Security income won’t be taxable. So now your taxable income is $96,840 after all deductions.

Using the 2024 tax brackets, $96,840 of taxable income puts you, at the highest level, in the 22% bracket. At that income level, your tax bill will be approximately $11,715 the first year.

How RMDs Come Into Play

When you turn 73, you’ll start taking required minimum distributions (RMDs) from your retirement accounts. Using the IRS table for calculating these distributions, your first-year RMD will come to $71,698.

RMD income is taxable, so this income could have tax implications. However, the $71,698 amount of the RMD is less than the amount you’ll withdraw the first year of your retirement. So RMDs are unlikely to have much effect on your tax bill as a retiree, unless circumstances in one way or another.

Accounting for Long-Term Care

Your retirement plan may want to also consider long-term care. A 2021 Genworth Financial Cost of Care Survey uncovered that annual costs for a semi-private room in a skilled nursing facility could be as high as $94,000 per year, and that will likely continue moving up every year. This is more than two-thirds of your entire first-year anticipated income, so a long stay in one of these could be a significant financial concern.

To insulate yourself from these potential costs, you might consider long-term care insurance. Be aware that the premiums are not inexpensive, especially if you start later in life. Prices rise sharply as you age and it may be difficult to get it if you are past age 70 or in poor health.

Retirement Planning Tips

• A financial advisor can help you build a comprehensive plan for retirement. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

• You can use SmartAsset’s retirement calculator to generate what-if scenarios that can help you decide whether it’s safe for you to retire.

• Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.

• Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP.

Photo credit: ©iStock.com/AlexanderFord, ©iStock.com/adamkaz

The post We Are 65 With $1.9 Million in a 401(k) and IRA, and $5,200 Monthly From Social Security. What’s Our Retirement Budget? appeared first on SmartReads by SmartAsset.

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