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Retirement Planning

<span style="font-weight: 400;" data-mce-style="font-weight: 400;">What You Should Know about Retirement Planning</span>

What You Should Know about Retirement Planning

There are two different sides to retirement planning. First, we plan for retirement while you’re still earning income. This involves setting up retirement accounts and making regular contributions to them. During this time, we can manage your accounts and help you build your wealth.

The next phase is the retirement phase. During retirement, we must plan for receiving income from your retirement funds. Most people invest in a variety of assets to increase their return on investment. When you retire, it’s time to convert those assets gradually, allowing you to receive a regular income.

When to Plan for Retirement

You’re never too young to plan for your retirement. The more time you have for wealth to build, the better off you’ll be when it’s time to withdraw money. That being said, you shouldn’t wait to plan for retirement, even if you’re no longer in your 30s or 40s. If retirement is only a decade away, you can still make some headway and build up a savings cushion. Depending on your age, you may even make additional or catch-up contributions to your retirement funds.

The key is to plan as soon as possible. Nothing is worse than inaction on the retirement front. Our financial advisors can help you put together a retirement plan that considers your situation and goals. 

Why Retirement Income Planning Matters

When you reach retirement age, it’s important to spend some time on retirement income planning. You don’t need to sell all your assets and convert them into cash. Cash spends far too easily, and this may make it difficult for you to stay afloat for the rest of retirement. Instead, we’ll create a retirement income plan for you.

There are different options for doing this, but one popular method is purchasing an annuity. Annuities can provide you with a fixed income for a certain number of years, giving you peace of mind that your bills will always get paid. Even when you’re retired, we still continue to manage your assets and their performance. You can still buy and sell stocks and bonds within your retirement portfolio to maximize your earnings even once you liquidate some of the wealth.

<h2><span style="font-weight: 400;" data-mce-style="font-weight: 400;">FAQs about Retirement Planning</span></h2>

FAQs about Retirement Planning

You probably have a lot of questions about retirement planning. We’ll answer some of the most common ones here to get you started. For detailed information regarding your retirement income, please make an appointment with us.

When Should I Start Planning for Retirement?

Now. The sooner, the better. Retirement planning is something many people put off until some unspecified time in the future. Start planning for retirement as soon as you can to build a future where you can live comfortably and enjoy the lifestyle that you want. 

How Soon Can I Retire?

That depends on a variety of factors. You can receive Social Security income as early as age 62, but this may not be enough to support your needs. Some people enjoy working part-time long after they have retired from their regular job, but perhaps you want to start a business or see the world. How soon you can retire depends on the size of your portfolio and your financial requirements during retirement. 

How Much Money Do I Need to Retire?

The answer to this question varies. Each individual will have a different idea of how much income they will need to retire. If you plan to downsize, you may need a lot less. If you want to live in style and see the world, you’ll need more. Experts suggest you need about 80% of your pre-retirement income to maintain your current standard of living. 

How Do I Get Income from My Retirement Account?

When it’s time to retire, you’ll want to withdraw money from your retirement accounts. There are different ways to liquidate your assets to achieve this goal. You can purchase CDs, short-term bonds, or annuities to turn your stocks into cash. The goal is to keep earning money on your assets even as you withdraw funds for living expenses.  

Don’t Wait to Start Retirement Planning 

Let our experts help you plan for retirement. Whether you’re just starting out with retirement savings or need to think about how to liquidate some of your wealth to generate an income stream, we’re here to help you navigate your finances. Contact us today at AWN Tax to discuss our retirement planning services.