Planning for Retirement if You Have 5 Years
Planning for retirement if you have 5 years means you have little time to waste. Make a list of retirement “needs” and “wants.” If you do not have enough savings to meet your “needs,” make a five-year plan to increase your funds.
Double-check your reported Social Security earnings and resolve any discrepancies now. Explore your Social Security claiming options and make sure you understand the timing of applying for benefits.
Run tax projections periodically to ensure you take advantage of opportunities the IRA provides, such as Roth IRAs, which allow tax-free withdrawals.
Do I have enough to retire?
Planning for retirement if you have 5 years can be an exciting and terrifying time depending on how much planning and investing you’ve done. However, for most the question of will I have enough is top of mind. Having a projected budget is important and crucial. For clients which have an active budget this work will be easy. For others without a current budget making a projected future budget might be a challenge. Start here if you never made a budget before. Most expenses decrease in retirement. Other expenses increase. Most of my retired clients spend about the same as they were spending before retirement.
Planning for Retirement if You Have 5 Years
For many social security will makeup a large part of their retirement income. In the past, retirees would turn age 62 and simply “turn on the spigot”to begin receiving their Social Security retirement benefits. Today, however, those approaching retirement know the importance of making a good decision about how and when to initiate their Social Security benefits. Careful planning can also boost income for those who are single, divorced, widows/widowers, and families with minor dependent children.
Creating an optimal income stream during retirement
Reviewing your future projected tax distributions are very important. Having a clear understanding of the rules associated with deductible and nondeductible, qualified and non qualified retirement accounts and annuities will keep you out of the IRS penalty box.
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