Tips for Planning for Retirement: Part 2 | Opinion


Last week, I talked about some very important steps you should consider to get a stable financial plan for life during your retirement years. This blog is a continuation of those steps.

Estate planning is a step that is often overlooked when planning for retirement. No one likes to think about death, but as you approach retirement, you also realistically approach the end of your life. Preparing an estate plan will leave your family with a financial plan instead of financial burdens after you leave. It will also allow you to distribute your money as you wish.

I cannot stress enough the importance of creating a will, healthcare directive or power of attorney, as well as giving someone you completely trust a power of attorney to make decisions that will change your life in the future. incapacity. Remember to name the beneficiaries of life insurance plans, retirement accounts and other assets. Keep in mind that there may be tax implications with the IRS when financial gifts, real estate, or other assets are distributed after death.

Another important tip to remember is that if you have certain requests for your funeral, or if you want certain members of your family to have specific items, you can create a document that expresses those wishes. It is wise to have this document certified as authentic and to keep it in a safe. It is a good idea to also store related personal information such as your social security number, birth certificate, bank account numbers, passwords, insurance policies, and other important documents in one. safe.

* Pro tip: Make sure someone you trust has full knowledge of the location of your safe and how to unlock it in the event of death.

Retirement income, mutual funds, government bonds, real estate, closed-end funds, dividend income funds, and annuities are all good options for retirees. The more you know, the better you can decide which option is best for you. Most of us have spent our entire adult lives investing money in our retirement accounts. It is extremely important to understand how to withdraw this money and how much you can withdraw without incurring a penalty.

If you have an employer-sponsored plan, determine whether you want to leave money there or transfer it to an IRA account. If you are over 59 and a half, you can withdraw money from your retirement account without incurring an early withdrawal penalty, but you will have to pay federal taxes on that money because it is considered taxable income.

You want your withdrawals to be tax efficient. Some states do not require their residents to pay taxes on retirement income, so be sure to check with your state revenue department or state tax collection agency. By 70 1/2, the law requires you to take minimum required distributions (RMD).

Next, you will need to decide when to register for Social Security. Most experts suggest waiting to join Social Security until you reach full retirement age so that you can get full benefits.

However, you can register anytime between 62 and 70 years old. The longer you delay your request, the larger your check will be. You can apply for Social Security online, over the phone, or in person at a local social security office.

After you’ve created your retirement plan, remember to review it at least every five years or whenever a life-changing event occurs. I know some of you might say, “I’m too young to think about retirement” or “I just started working, so why should I rush my retirement planning?” “

The point is, it’s never too early to plan for retirement. So just start wherever you are and keep planning because that moment will be here before you know it!

If you would like additional information on this or other financial topics, please do not hesitate

to call me at 662-624-5776 or email me at

Until next week, stay in shape financially!

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