Our economy and society may be a continuous change in modern human history, but one thing is for certain when questioning the outcome of your retirement plan – can you still live comfortably, even when you are no longer working and being compensated for that work?
With everything going on around us, how do we weigh our options when building a retirement plan that best suits our needs? We here at Prenger and Profit have devised a list of questions that you should consider when planning this next stage of your life.
How Do I Utilize Social Security?
The common retirement age in the United States can range from 40 to 70, which really varies between every individual. To better shape the outcome of your retirement life, you need to have set aside a relatively sizable 401(k) and IRA to have the best outcome from your Social Security.
The earlier you start investing money into these accounts, the better. However, circumstances may vary for every individual, thus, you must decide on how to approach these opportunities. For starters, your employer can help you by setting up a 401K and IRA when you are first hired that you can apply your savings towards and develop a tax-advantaged account. Nevertheless, the earlier you start investing, the more money you can save in the future. Having a regular investment schedule is also key.
What Are the Risks That I Should Know?
It is predicted that in the next one to two years, retirees are at a greater risk because of the uncertainty of the market that can affect their savings. The best thing that you can do to minimize the effect, is to transfer some of your high-risk assets, such as stocks, into a fixed form of income. Another tool that you can utilize is Social Security, since it is an annual income. Some even go as far as to partner additional gigs with their Social Security for a better payout.
How Should I Plan for My Estates?
The good thing about today’s taxation is that there have been some beneficial tax reforms being made. You can now exempt your estate tax up to $11 million in value. These huge savings can be allocated somewhere else, like in stocks and other possible investments. If you want to keep a lower estate tax, you should probably avoid building or adding new features to your home, since these changes are presumed to increase the value of your estate, and therefore your estate tax.
What if I’m Not Ready?
Truthfully, almost 40% of the retirees in the US are not confident that they are able to continue their way of living in the next few years after retirement. Thus, they have considered working side gigs to compliment the payouts that they have from the government, or from their own personal savings.
By embracing the tech-driven world that we now live in, you can hold a freelance job to receive additional income. Some websites on the internet offer payment for writing, app development, or audio transcriptions that you can profit from, given your experience in the real world.
We hope this article gave you some ideas on what to consider when moving forward with your retirement plan. If you are thinking about the life YOU want for yourself after retirement, it is best that you do it with the help of experts. Help us help you by getting in touch with us TODAY!
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