3 Tips to Make Your Money Last Longer
Defy Murphy’s Law in retirement
(Editor’s note: This content is provided by Social Security Solutions, a Next Avenue sponsor.)
The adage known as Murphy’s Law (“Anything that can go wrong, will go wrong.”) has no place in your retirement. Your hard work and years of diligent saving can be at risk if you leave it up to Murphy. Defy Murphy and make your money last longer in retirement by doing the following.
1. Refuse to accept “conventional wisdom” as good advice. Advisers and financial services firms can be preoccupied with selling you expensive products rather than recommending the best strategy to generate the income you need in retirement. They often default to a cookie-cutter approach to planning and do not fully consider your unique circumstances. This “conventional wisdom” is overly simplistic and outdated. Expect more from your providers. Challenge them to bring you more valuable insight along with personalized, actionable strategies so you can get the most out of your retirement.
2. Develop the optimal claiming strategy for Social Security. Some retirees may realize delaying a claim on Social Security may yield more benefits later. Few people realize they can be subject to unnecessary taxes and stiff penalties if they don’t carefully coordinate their timing with the drawdown of other retirement savings. The rules can be complex to navigate, but innovative software like those offered by Social Security Solutions, Inc. can empower retirees with specific, personalized strategies to maximize their Social Security benefits. Getting more from Social Security means you will rely less on your other savings throughout retirement.
3. Create a smart withdrawal strategy. Replacing a paycheck means tapping into a nest egg that may be spread across many different types of accounts (i.e. 401k, Traditional or Roth IRAs or brokerage accounts, etc.). The sequence and timing of your drawdown is critical. Seek out firms that specialize in building retirement income strategies so that you get more and keep more money in retirement. Retiree, Inc. is now offering Income Strategy, which helps individuals identify and activate their optimal withdrawal. Income Strategy is backed by years of research and just recently became available to consumers. It can help you find the right approach to minimizing taxes and making your money last longer.
