There are many income sources that contribute to your retirement fund. Your retirement plan might include taxable assets like mutual funds and brokerage accounts, tax-deferred assets like IRAs, 401(k) plans, and pensions, and nontaxable assets like Roth IRAs, Roth 401(k) plans, and tax-exempt municipal bonds. With all these different accounts to keep track of, developing a strategy for drawing retirement income in a tax-efficient way can be difficult.
You may be wondering where do I even begin when it comes to retirement? What should I consider? Here are five questions to ask when planning for retirement.
- When is the right time to start saving for retirement?
- Your life span after retirement could stretch up to three decades, or even longer. The sooner you start saving, the more wealth you’ll accumulate, thanks to compounding interest.
- What should my savings rate for retirement be?
- Most financial professionals recommend an annual retirement savings goal of 10% - 15% of your pre-tax income.
- When to avail my Social Security benefits?
- The minimum age to avail your Social Security benefits is 62 years old. Social Security benefits increase if you delay it past full retirement age until age 70. Depending on your other sources of income, your Social Security benefits may be nontaxable or partially taxable.
- Are Medicare plans enough?
- Keep in mind, Medicare does not cover many routine exams and it will only cover up to 100 days in a nursing home. Unexpected medical expenses can be devastating it’s so important to have a plan in place to cover those potential expenses.
- Why should I work with a retirement specialist?
- A retirement specialist can help you create a comprehensive, holistic retirement plan and will help you make the most of your employer-sponsored retirement plans, IRAs, and other retirement vehicles.
As a firm specializing in retirement, Schmerling Financial Group can help you build a plan to reach your retirement goals while protecting your investments. If you feel you need to do more planning for the future or rethink your current strategy, connect with us today. It is our mission to provide financial planning and preparation for a life filled with purpose.