Some Retirement Strategies For All Ages A To Do List

Some Retirement Strategies For All Ages A To Do List



Some Retirement Strategies for​ All Ages a​ ToDo List
A successful retirement depends largely on the​ steps you take during different stages of​ your life. Here are some moves to​ consider. Note Investment portfolios shown are illustrations only. You must decide what percentages and​ investments are right for​ you.
Your 20s and​ 30s Early Career
Contribute as​ much as​ you can to​ IRAs, 401K, Keoghs and​ other retirement savings while meeting other goals, such as​ buying a​ home or​ starting a​ family.
Keep your debt from credit cards and​ other sources manageable.
If you dont already own a​ home, consider if​ this is​ a​ good option for​ you. While a​ home purchase can be expensive, it​ also can be an excellent investment and​ source of​ tax breaks.
Given your years until retirement, you probably can afford to​ be fairly aggressive with your investments. Possible portfolio 60 to​ 80 percent in​ stocks or​ stock mutual funds and​ most of​ the​ rest in​ certificates of​ deposit CDs, bonds, bond funds or​ money market accounts.
Your 40s and​ 50s MidCareer
Continue putting as​ much as​ you can into IRAs, 401K, Keoghs and​ other retirement savings accounts. Once you reach age 50, you can make catchup extra contributions to​ IRAs, 401K, and​ other retirement savings accounts.
If you havent bought a​ house already, consider doing so as​ a​ source of​ equity and​ a​ place to​ live in​ retirement. if​ you have a​ mortgage, periodically compare your interest rate to​ current market rates. if​ current rates are better, consider refinancing.
As you get closer to​ retirement, consider reducing stock investments and​ adding more conservative, incomeproducing investments. Possible portfolio 50 to​ 70 percent in​ stocks or​ stock mutual funds and​ most of​ the​ rest in​ CDs, bonds, bond funds or​ money market accounts.
Your Early 60s Late Career
Ask the​ Social Security Administration, your accountant or​ your employers personnel office to​ help you determine how much Social Security and​ pension income youd get if​ you retire early and​ how much youd lose compared to​ holding off on retirement.
Discuss with a​ financial advisor when to​ withdraw money from your taxdeferred retirement accounts, such as​ employersponsored retirement plans and​ traditional IRAs. After age 59 ½, you can withdraw your money without penalty but subject to​ income taxes. Under IRS rules, you must withdraw a​ minimum amount from 401K, traditional IRAs and​ certain other retirement savings plans by April 1 of​ the​ year after you reach age 70 ½ and​ each year after that. There is​ an exception to​ the​ rules for​ someone still working for​ the​ employer who sponsors the​ plan.
Consult with your legal or​ financial advisors about estate planning organizing your financial affairs so that your money, property and​ other assets can go to​ your heirs with a​ minimum of​ costs, taxes and​ hassles.
You may need or​ want to​ buy health insurance or​ longterm care including nursing home insurance. Consider the​ need for​ disability wage replacement or​ life insurance coverage.
Reduce your consumer debt as​ much as​ possible and​ consider the​ pros and​ cons of​ paying off your mortgage early. But if​ you think youll need to​ borrow money during retirement, determine whether you want to​ refinance your mortgage, take out a​ homeequity loan, apply for​ a​ credit card or​ otherwise take out a​ loan before you retire. You might have more options for​ getting a​ loan when you still have employment income. No matter what loans you have or​ how old you are, its important to​ keep your debts manageable.
Consider reducing your stock ownership and​ increasing your conservative investments. Possible portfolio 30 to​ 60 percent in​ stocks or​ stock mutual funds and​ most of​ the​ rest in​ CDs, bonds, bond funds or​ money market accounts.
Your Retirement
The rules governing retirement can be complicated. So, about a​ year before you plan to​ retire, discuss your situation with a​ Social Security Administration claims representative. After you decide on a​ retirement date, apply for​ your Social Security benefits and​ other pensions about three months in​ advance. if​ you plan to​ work parttime, find out how this will affect your Social Security income or​ taxes.
Arrange to​ have your periodic payments, such as​ Social Security benefits, directly deposited into your checking account. Ask your personnel department or​ financial advisor about whether to​ receive your 401K money in​ a​ lump sum or​ periodic payments.
Reduce your debts as​ much as​ possible. Be careful before taking on new debt, such as​ a​ homeequity loan or​ a​ reverse mortgage.
Lean toward conservative, incomeproducing investments, but dont rule out stocks or​ stock funds. Possible portfolio 20 to​ 40 percent in​ stock or​ stock mutual funds and​ most of​ the​ rest in​ CDs, bonds, bond funds or​ money market accounts.




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