The current economy might influence senior's financial planning

Seniors might have to think hard about their retirement living plans in wake of the current financial crisis, according to the New York Times.

Currently, Roth IRAs are only tax free for individuals with an income of $100,000 or less. Starting next year, that limit will be removed and investors in all tax brackets will appreciate interest tax-free.

The current economy might influence senior's financial planning

Though this will benefit IRA holders, it could also be helpful during estate planning, as the contents of an IRA can be passed to an heir without a tax penalty.

"The beneficiary must take minimum distributions," Mitch Drossman, national wealth strategist for Bank of America private wealth management, told the Times. "But it will be growing tax-free and distributed tax-free."

Of course, estate matters aside, seniors must plan for their own financial comfort. Those who are currently in independent living situations might at some point need homecare or move to an assisted living facility. Seniors should meet with a financial advisor to ensure that they have adequately planned for their retirement.

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