Financial security in retirement doesn’t happen by accident. Planning for a financially independent retirement involves more than just putting money away into a savings account and choosing the hobbies you plan to take up. Keep these six questions handy for the next few years as you start to think more seriously about what you want your retirement to look like.
1. When should you retire?
When you retire isn’t only based on your age – it’s also based on your retirement fund. It’s recommended that you have around 12 times your pre-retirement salary saved before you stop working.
2. Should you move?
Some people choose to move after they retire to save on the cost of living, to pay lower taxes, or to expand their community. Moving can save you money during retirement and can allow you to be closer to your family.
3. When should you start using Social Security?
Although you can start taking Social Security benefits at 62, you’ll receive more if you wait until 70. You should also consider that most states tax your Social Security Benefits.
4. What does your portfolio look like?
Your portfolio should change as you near retirement. Your appetite for risk should wane in favor of more conservative investment options that can supplement your income.
5. Should you still have an emergency fund?
Even the best retirement plans can be ruined because of unexpected expenses. In addition to what you have saved for your future medical expenses, you should continue to have an emergency fund, just like you did during your career.
6. Do you have an estate plan?
Regardless of your net worth, it’s important to have an estate plan to name your beneficiaries and save your loved ones from undue tax burdens.
Planning ahead for your retirement can help you better protect your current net worth as well as gain a clearer understanding of your potential future financial needs.
Feel free to contact the office if you’d like to discuss further. We’re looking forward to our continued partnership as we build your retirement together.
Tax-intelligent financial planning can provide numerous potential tax saving opportunities. Whether building your family and career, preparing for retirement, or passing on wealth to future generations, working with a tax-intelligent Financial Professional can be one of your greatest assets and potentially lower your tax bill so you can keep more of your hard-earned money. To determine the best strategies for your unique situation, contact your tax-intelligent Financial Professional today.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.