Retirement on the horizon? Follow these 3 tips
As you approach retirement, the financial strategies you’ve been following need to move from educated guesswork to reality. For example, will you have enough money to travel, enjoy hobbies or spoil your grandchildren?
Also, after retirement, will you still need to earn money with a part-time job, or do you plan to stop working for good?
Whatever your plans, it is important to have a good understanding of your financial situation and to make the necessary adjustments. To help you, here are three tips to ensure you get the retirement you want.
Calculate what you need to retire
Because retirement dreams vary, the amount you’ll need to save may be different than other retirees. Fortunately, a retirement calculator can give you a general idea of what you need, and working with a financial planner can help you live out those dreams.
Locally, Saturn Wealth Financial Planners can help you with its RING system:
- Risk analysis analyzes your tolerance for risk and uses it to determine a path forward based on your age, financial goals and current situation.
- Income and expenses are taken into account to determine the lifestyle you want in retirement.
- Nest protection strategies work to protect your assets as much as possible and modify your plan as situations change.
- Generational Legacy looks at legacy planning and charitable giving options for you through trusts and wills.
“Saturn Wealth’s RING Retirement System helps our clients create a comprehensive plan they can trust,” according to the wealth management company.
Whether you’ve worked with a financial planner before or this is your first time, you’ll have the chance to make a plan that works for you and meet regularly, so you can update it as life changes. can bring.
Determine your social security strategy
In addition to your other savings, the money you’ve contributed to Social Security throughout your career will come to fruition in retirement. However, some subtleties can make a big difference in how much you can withdraw.
If possible, you may want to wait to use Social Security money. You can withdraw as early as age 62, but each year of waiting will increase your monthly benefit, with an 8% increase if you wait until age 70, depending on the Social Security Administration.
Choosing the right time will depend on what you expect from retirement. For example, almost a third of people aged 65 to 69 worked at least part-time in 2017, according to the Bureau of Labor Statistics. If you don’t want to work at all, you can rely on your other investments until you are ready to profit from them.
Double your savings
By planning alone and with a professional, you can work to increase the amount you save. This could include reevaluating your mortgage to determine if you can pay off your home early. If you have adult children you support financially, you may need to discuss changes.
As for retirement accounts, if you’re 50 or older, 401(k) accounts and individual retirement accounts have a “catch-up” option that allows for additional contributions beyond the standard amounts. The 401(k) catch-up contribution limit for 2022 is $6,500, with a total annual contribution limit of $20,500, according to Investopedia. The IRA catch-up allows an additional $1,000, for a total contribution limit of $7,000. These amounts can increase each year, so you can add even more.
Get the retirement you dream of by scheduling a no-obligation visit with a financial planner at saturnwealth.com.
“Investment advisory services made available by AE Wealth Management, LLC (AEWM). AEWM and Saturn are not affiliated companies.