What You Will Discover: 5 Retirement Planning Strategies You Can Start Today
Skill Level: Easy
OMG the Clock Is Ticking!
So! You’re over 50. And interestingly enough, taxes still have be paid. As do bills. And the kids are growing, and the grandkids are coming, and you are no longer interested in sky-diving or partying 34670398 hours a day or any of those pre-Over-50 activities you might have done in the past.
The future is now! The important person is you! It’s time to take control… FOR you!
But how do you start?
So glad you asked…. following are 5 powerful retirement strategies you can begin TODAY… no matter what your age might be.
Step 1.) Now That You’re Over 50, You Can Contribute More to IRAs
In 2015, you can contribute to all of your IRAs up to $6,500 if you’re age 50 or over. Woot! (ref: IRS.gov)
And you might be able to make a catch-up contribution up to $6,000 in the following plans:
- 401K
- 403b
- SARSEP
- Govermental 457b
So if you can contribute more…. do so! It will save on your taxes as well.
Next:
Step 2.) Take a gander at all of your past 401K plans.
Did you change jobs over the course of your lifetime? If so, and if you contributed to various/sundry 401Ks, look into condensing them into one main IRA.
It’s called Rolling Over your IRAs…. and it makes tracking your wealth that much easier. You can do this by picking a low-cost financial institution… and sometimes, firms will offer a cash incentive for you to do this.
It’s something to look into.
Next:
Step 3.) Downsize!
Are you still living in your family house that accommodates all your stuff and your kids’ stuff and your neighbors’ stuff and and and……
Consider relocating where the cost of living is cheaper or simply moving to a smaller house/apartment/community.
Even if the real estate market is depressed, you still might make up for it by savings in property taxes, insurance, utilities….
… and that’s money you can dedicate to your retirement account.
We’re brewing’ with caffeine now – next:
Step 4.) Revisit your social security benefits
If you can delay taking filing for social security, your monthly benefits will be larger in the future than if you start filing today. The key here is to wait as long as possible before requiring these benefits.
The official Social Security office has a great way for you to track your Social Security benefits over at MySocialSecurity. It allows you to:
- Keep track of your earnings and verify them every year;
- Get an estimate of your future benefits if you are still working;
- Get a letter with proof of your benefits if you currently receive them; and
- Manage your benefits
- Change your address;
- Start or change your direct deposit;
- Get a replacement Medicare card; and
- Get a replacement SSA-1099 or SSA-1042S for tax season.
Good stuff!
And finally:
Step 5.) Take into account Long Term Health-Care needs
Imagine you have a grand retirement fund…
And then imagine you have severe health care needs!
Not good.
Thing is, life insurance premiums can cost big…. so choose wisely. A nursing home average stay, for example, is 2.5 years…. so perhaps having your policy cover a finite time might be wise. AARP has a good article about this over at Life Insurance After 50.
What You Just Learned)
You’ve just learned 5 retirement-planning strategies for people over 50.
Your Next Steps)
Knowledge is great… but useless unless you put it into action!
Take some time to review the above steps, pick at least 1 you can tackle today… and then make it so today.
Your future wealth will thank you for it!
Take Control,
Manny
GRAB IT NOW