How to go about ensuring a financially stable retirement
It’s crucial to have numerous income streams coming into your bank account each month as you prepare for retirement to preserve your peace of mind throughout your golden years. After all, when you should be unwinding after a lifetime of labor, the last thing you want is to worry about your finances! Here are three strategies to ensure you don’t run out of money in retirement.
1. Required Minimum Distributions (RMDs)
You have the choice to take a particular amount of money out of your retirement savings once you reach a certain age. However, you should research because each option has unique benefits and drawbacks.
If you want your investments to grow, you can decide to leave your money in your retirement account before you turn 72. This can be the best option if you don’t need the fund.
When taking money out of several retirement accounts, careful planning is critical. In other words, it’s probably advisable for you to take withdrawals from taxed retirement funds first.
However, you do have many options when it comes to your retirement distributions. For instance, you can opt to remove stocks and bonds rather than actual cash.
This could be a great choice if you already have enough money to maintain yourself because you could invest these financial assets and gradually raise your net worth.
It’s probably a good idea to utilize your right to an RMD reprieve if you are still working at age 72.
The optimal time to retire is by January 1st, so you might want to be strategic about when you make that decision.
RMD withdrawals are understandable if you require income, but it’s probably advisable to leave your money in retirement accounts for as long as possible to benefit from compound interest.
You can contribute to different retirement accounts, which is crucial to keep in mind. There are numerous retirement accounts to pick from, including;
- The Solo 401(k) and the Roth IRA,
- The Traditional IRA,
- The SEP-IRA (for self-employed individuals).
The optimal course of action will once again rely on your goals, financial status, and desired standard of living.
Most people who have worked for most of their lives will be able to obtain Social Security. However, the amount you will receive will differ depending on several variables.
As you can see, it is preferable to have several sources of income so that you are not entirely dependent on Social Security.
Unless you absolutely need to, it’s generally in your best interest to file for Social Security later rather than immediately.
You could get by on this amount if you want an inexpensive way of life. Still, it could be constraining, especially as you get older and become more accustomed to certain creature comforts, which is understandable.
For this reason, it’s crucial to remember that Social Security is just one source of income.
Your Social Security will be considerably impacted if you have a pension from the public sector. In fact, you might not even be qualified for Social Security.
Unfortunately, not everyone will be eligible for Social Security, making it crucial to avoid being dependent on this specific income source in your later years.
3. Systematic Strategic Withdrawals
Even if you have millions of dollars in your bank account, taking them all out at once and hiding them under your bed is not an intelligent way to maximize or protect your income. Regardless of your nest egg size, the smart move is only to withdraw the money you need and leave the rest to continue working for you.
The core of a systematic withdrawal approach in retirement is calculating your cash-flow requirements and regularly withdrawing only that amount of money. Sure, withdrawing the same amount of money every week or month falls under systematic behavior, but it isn’t strategic if your withdrawals aren’t based on your needs.
Most people use a systematic withdrawal strategy, gradually liquidating their assets in one way or another. Bonds, bank accounts, and other assets should all be considered in addition to equity holdings, which are frequently the highest money sources tapped in this way.
Equity holdings include mutual funds and stock in 401(k) plans. Your revenue stream can last as long as needed if a withdrawal strategy is correctly applied.
In summary, the best retirement plan depends on the demands of the individual, so if you’re unsure of the best path for you, you might want to speak to a financial advisor.
Contact Information:
Email: [email protected]
Phone: 3604642979
Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.
Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.
Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.
Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.
Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.
With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.
Aaron can help you and your family to create, preserve and protect your legacy.
That’s making a difference.
Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.
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