Retirement Finances
March 7, 2024
This time of year brings about calls for spring cleaning, but those who stay on top of things throughout the year need only to tidy things up a bit. The same can be said for your finances as you prepare for or enter into retirement.
Make a ‘To-Do’ List
Having a plan can make large, involved tasks like planning for retirement seem much less daunting when there are checkpoints along the way. When it comes to keeping an eye on finances as you approach retirement, here are some helpful waypoints1:
- Age 50 – Begin to make catch-up contributions to retirement accounts
- Age 59 ½ – No more penalties for withdrawals from retirement accounts
- Age 62 – Minimum age to begin collecting Social Security benefits
- Age 65 – Eligible for Medicare
- Age 67 – Eligible for full Social Security benefits
- Age 73 – Most retirement accounts begin Required Minimum Distributions
A Place for Everything
Think of your retirement accounts and savings vehicles like your house. It’s great to have a nice big one, but that can also lead to valuable things getting lost or misplaced if things are not kept in order. Over a lifetime of working, you might have several different employer-sponsored 401(k)s or other retirement savings accounts that have become a large and scattered portfolio. While consolidation of these accounts could be beneficial, there are also rules that dictate how many rollovers you can make in a year which can come with their own potential penalties2. Knowing how and when to move your assets is one of the keys to optimizing the funds you will use in retirement.
Call in the Pros
Sometimes spring cleaning requires the skill and touch of someone who has been doing it for years. Just like a lawncare service can make your yard a bit greener or a cleaning company can add that extra sparkle to your kitchen, an experienced financial advisor can put that extra flourish – and sense of confidence – on your future plans. Reach out to our seasoned professionals and schedule a consultation. We are happy to help!