Dakota: We are joined again by Private Wealth Advisor Will Rogers to talk about how to make your retirement dreams reality.
Will, what are the key actions?
Will: There are three main time frames that you’ll look at different things. 10 years out, 5 years out and 1 year out. Do the right things and you should have a lot of confidence in your retirement plan.
Dakota: OK, at 10 years out what should folks do?
Will: Revisit your tax diversification strategy.
Tax diversification, coupled with a tax-efficient withdrawal strategy, can help you optimize how much you save and could help your assets last up to three years longer. Consider:
• Tax-deferred accounts like IRAs and 401k plans
• Tax-free accounts: investments that use after tax dollars for tax free growth, examples include Roth IRAs, Roth 401k plans, 529 College saving plans and more.
• Taxable accounts: Investments that use after tax dollars, and earnings you realize along the way is generally subject to tax.
Dakota: What should our viewers do at 5 years out?
Will: About 5 years away from your target retirement date is when you should decide WHEN you will start collecting Social Security benefits.
• 62 is the earliest, but at a substantial discount.
• “Full Retirement Age” for most viewers will be age 66 or 67
• 70 is the latest you can wait to get the biggest benefit.
Dakota: 1 year before you retire, what should you do?
Will: Live like you only have your retirement income. I had my Mom do this the year before she retired and it was incredible for her. She only spent what her pension and social security income was going to be, and ended up saving up an extra cash reserve that she used for extra travel her first few years of retirement. Now in the event that she was NOT able to live on the lower income she would have also known NOT to retire until she saved some more money.
Dakota. Good advice - For more information, check out Will’s website at www.WRogers.info
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