Freeman's Blog


May 18th, 2015 by

Retirement Plan

Your time in the workforce is limited, but you need ensure you have enough money for the rest of your life. It starts with an assessment of where you are now and looking at what choices you need to make to reach your goals.

Start with these strategies:

1. Start by increasing the amount you put in tax-advantaged product or vehicles, including your 401(k), IRA, SEP-IRA, Keogh, 403(b) or other plans. You can make larger contributions to many of these plans once you reach a certain age, and if you can, you should.
2. Be smart about Social Security. While you’re eligible to start drawing Social Security at age 62, that is not the best option for most people. Each year you wait until age 70 adds 7 to 8 percent to your monthly benefit.
Learn more about Social Security Retirement Benefits here.
3. Get a money checkup. If you’re not sure whether you’re heading in the right direction, find someone who is qualified to help you with your retirement goals.
4. Expect to work longer if you haven’t saved enough. If you can’t live on your Social Security and other income, you likely will have to keep working. That might mean starting a second career or a new business.
5. Figure out how much you’ll really need when you retire. It’s unlikely that you’re going to spend significantly less in retirement than you do now, unless you move to a cheaper area and slash your housing expenses. And if you plan to travel, you may spend even more.
6. Get out of debt. You don’t want to go into retirement owing money. Plus, interest you’re paying on loans is money you could be putting towards something else in your retirement goal.
7. Be ready to cope with life changes. The best-made plans can be swept aside if one spouse dies or if you lose the high-paying corporate job you expected to keep indefinitely. Divorce can also complicate plans. Expect to need a Plan B or C or even D.
8. Update your wills, trusts and beneficiaries. Retirement dollars are distributed to the beneficiaries you name on those products. Make sure you keep that information updated. It’s also wise to make sure you have an updated will, a trust, if needed, and health care surrogate documents. These issues are especially important for unmarried couples or couples in second marriages. See my video below on how to get started.

Source: US NEWS  “Saving Strategies for People Between Age 55 and Retirement” | May 14, 2015

I want to help you live your golden years stress-free. For that, we need to start planning early. So, let me help you assess where you are now and help you get to where you want to be.
Let’s get started today!
Contact my office at 1-833-313-7233 | MD, VA & DC.
Freeman Owen, Jr - Host of SAFE MONEY TALK on CBS The Big Talker 1580AM