Retirement can be a welcome opportunity for many and yet a daunting mountain to climb. After all, the majority of one’s life is spent working and saving for this highly sought-after goal. Life seems to fly by and you arrive at retirement season in the blink of an eye. The final stage and tasks of retirement preparation can feel daunting. After all, one has to make sure all plans are in order to ensure a successful retirement without the need to keep working. Below I will discuss three factors to consider. This is not intended to list everything that goes into retirement planning. It is very important to visit with a financial planner to consider your unique situation!
Longevity (life-span) in your family tree is an important factor. Probability suggests that you will likely live as long as your parents and grandparents but it is a great idea to plan on living a few years longer. By carefully planning for your projected life-span, it helps ensure that you will not run out of money or be forced to reduce your standard of living later in retirement.
Learning how to maximize your Social Security is critical, along with calculating WHEN to draw on it. Again, consider your life-span. Generally, the longer you live, the better of an idea to delay drawing on Social Security becomes. Next, if you decide to delay drawing on Social Security for a few years after retirement, do you have enough savings to live on while waiting? Is that savings in the right vehicle to draw on; Taxable, Tax Deferred, Roth? I strongly suggest you discuss this point with your financial planner.
Another aspect to consider is your tax bracket. Could using specific retirement strategies aligned with your tax bracket now, help grow your wealth later? For example, you could convert or do a partial conversion over many years of tax-deferred savings into a Roth account. There are a few factors that could go into making sure this a wise decision, including how long you’ve had a Roth account, your projected life-span, tax-bracket and your current estate plan.
Making any one of these decisions should not be taken lightly as each has the potential to make a dramatic impact on your ability to enjoy your retirement. The goal is to have peace of mind and know that you will never have to go back to work.
Cody will be onsite at The Bank of Tioga December 4-5. If you would like to schedule an appointment with him, please call the bank at 701-664-3388 (and ask to setup an appointment with Cody Forbush) or call him directly at 712.487.0369.
About TS Prosperity Group: We want to be your partner in creating a plan that secures and empowers your financial prosperity, while giving you the ability to care for your family today and for generations to come. Contact TS Prosperity Group today by calling 844-487-3115 to schedule your prosperity planning meeting.
Cody joined TS Prosperity Group in 2017. As an Investment Strategist, Cody sits on the Investment Committee and helps with the research, investment recommendations, and portfolio construction. His role also includes taking the message from the Investment Committee and delivering it to the client in a way that makes sense. Cody comes from a rural farming community in Idaho. He earned a Bachelor’s degree in Business Administration with an emphasis in Investment Science and Portfolio management from the University of Nebraska at Omaha (UNO). He also completed a MBA degree from UNO with an emphasis in Risk Management. Cody is currently studying for level II in the CFA program. His work experience includes assisting high net worth clients plan around their goals, and developing an all-encompassing strategy to help accomplish those goals.