Here are some tips to supplement your individual retirement plan. Unfortunately, there’s not enough space to go into detail about any of the many retirement saving options available, so talk to a professional to help determine the specifics of your retirement plan and see if you can implement these retirement saving tips.
1. Early and Often
The sooner you can start saving for retirement, the better. Start putting the maximum amount into your IRA or Roth IRA as soon as possible.
2. Calculate Expenses Your Way
There are plenty of rules of thumb to use when calculating how much you’ll need to retire. However, everyone has a different idea of what it means to retire “comfortably.” How much you’ll need is a very individual number.
3. Make withdrawals with taxes in mind.
If you take money out of taxable accounts first, you can save on taxes by letting the tax-advantaged accounts continue to grow. The longer you defer withdrawals, the more the assets within can grow.
4. Consider working in retirement.
Many people are surprised to find that all the leisure time they have in retirement is more boring than they expected. In addition, working part-time during retirement reduces the amount of your retirement savings that you withdraw annually.
5. Consider relocating.
Moving to a place with a lower cost of living can help you do more with less during your retirement. In addition, moving to a location with low tax rates can also be profitable. There a reason retirees move to Florida!
We would be happy to help with retirement planning. If you think these retirement saving tips are right for you, or if you just want more information, you can contact us at (410) 893-9100.
This posting is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this posting should not be acted upon without specific professional guidance.