What is something that almost nobody knows about retirement?
Senior Discounts Aren’t Always a Good Deal.
You know you’ve reached your golden years when you have earned the right to senior discounts. Usually, these discounts are offered to folks above 60, though some (such as AARP member discounts) may be available when you turn 50.
But be aware: Sometimes other discounts can save seniors more money. Compare the prices before accepting a discounted senior rate. For example, if you’re booking a hotel room, discover if the hotel offers a senior rate. Then double-check with a discount travel Website, such as http://hotels.com/, to see if you can get a better deal on the price. Also, decide if other discounts, such as an AARP or AAA member discount, are beating the hotel’s own senior rate.
Turning Half a Year Older Matters
Youngsters like to mention their age in half years, such as “five and a half” or “nine and a half.” During retirement, go back to that kind of thinking because two key milestones rely on half years. And if you aren’t careful, you might end up getting socked by Uncle Sam. Once you reach age 59 1/2, you’re no longer subjected to the 10% early-withdrawal penalty if you get money out of your IRA or 401(k). Withdrawals of your profits from a Roth IRA will no longer be subject to that penalty either. And beginning in the year in which you turn 70 1/2, you must take required minimum distributions of traditional IRAs and 401(k)s.