Editor's note: This column first appeared in The Save Safe Plan on Friday, May 2. For more information on The Save Safe Plan,
Ron Roge: Worry About Taxes First"You have to go through an awful lot before you decide on investments for this money," says Ron Roge, a financial advisor with R.W. Roge & Co. in Bohemia, N.Y. And taxes should be the first thing on your mind. If you're taking a lump-sum distribution from a retirement plan, you may want to roll that money into an IRA to postpone paying income taxes on that amount. "Assuming that taxes haven't been paid on this money, you can deduct about 40% in taxes from that amount," says Roge. "Eventually you will owe the taxes. But if you move the money to an IRA, the full amount can continue working for you and producing income for longer." And frankly, finding another job might be the next choice you want to make. "You could live another 40 to 45 years. That money has to last," says Roge. "Taking into account taxes, inflation and your own living expenses, this isn't going to go very far. You will probably deplete it quickly." Working more to save more might be the only option.