Just picture it: You are on a sandy beach. You’re sipping out of a coconut, your toes are in the water, and you never have to go to work again.
You can make this tropical fantasy your new reality with proper retirement planning. All it takes is implementing wise financial strategies that support your retirement goals.
At Elevate Wealth Advisory, we assist clients with their retirement aspirations by providing:
- Financial planning consultations
- Wealth planning
- Investment management
To be wise, plan for the future now, no matter your current age. Prepare for your golden years in the sun today!
1. Determine the Full Retirement Age
Many times early retirement happens at age 66. In 1983, Congress passed a law to gradually raise the age because people are living longer and are generally healthier in older age. The law raised the full retirement age beginning with people born in 1938 or later. The retirement age gradually increases by a few months for every birth year, until it reaches 67.
At Elevate Wealth Advisory, we can meet with clients to assess if it’s better to wait to collect their benefits at the full retirement age or delay so that benefits can increase.
2. Learn About and Compare the Different Types of Retirement Accounts
Your first step in preparing for retirement is checking to find out if you are eligible for employer-sponsored retirement plans, such as a 401(K) or a retirement plan with matching dollars. Your contributions to your accounts can grow, tax-deferred until you leave the company or retire.
If you are a freelance worker or your company does not provide a retirement savings account, you can open a Traditional Individual Retirement Account. Examples of different types of savings accounts include:
- Traditional IRA– subject to income tax
- Roth IRA– no immediate tax deduction, tax-free later
- Self-directed IRA– possibly tax-deductible
- Simple IRA– tax-deductible
- Simplified Employment Pension Plan (SEP) IRA– you will owe taxes at your current tax rate in retirement
- Solo 401(k)– typically, you will owe taxes on distributions
3. Invest to Build Your Retirement Savings
If you are starting retirement planning in your 20s and early 30s, you have more time to make some risky investing choices. As the experts on Wall Street preach, you may have to accept high risks to receive high rewards. Regardless of your age, you could add retirement money into your account by investing in:
- Mutual funds
We recommend hiring a financial consultant to discuss your financial goals in conjunction with your age, marital status, familial obligations, annual pre-retirement income, and the ever-changing marketplace.
4. Diversify Your Retirement Income Sources
When retirement planning, you need to consider your annual income and how much you spend per year.
If you are spending more than your benefits, investment portfolio, and projected pension income can provide, then you need to diversify your retirement funds.
One solution would be to downsize your home once you are closer to 65. That way, you can free up money for the activities you want to enjoy instead of paying off home loans.
Develop a Retirement Plan With Us at Elevate Wealth Advisory
For help with retirement planning, contact our team at Elevate Wealth Advisory by calling 706-353-2728 or sending us an email at firstname.lastname@example.org today.
Elevate Wealth Advisory (EWA) is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about EWA’s investment advisory services can be found in its Form ADV Part 2, which is available upon request.
There is no guarantee of the future performance of any EWA portfolio.