Closing in on Retirement? Read These Tips
Many of the people who engage the services of a financial planner tend to do so as retirement approaches. This is natural; retirement is a big step. Here is a financial planning to-do list if you are within 10 years of retirement.
Sock Away as Much as Possible
For many retirement savers, these are the highest income years of their careers. This is the time to contribute the maximum amounts possible to your employer’s retirement plan, IRA accounts and the like. While these contributions will not have the years to compound as those made in your 20s and 30s, every bit helps. (See also: Financial Planning: It's About More Than Money.)
Check Social Security
While there is some discussion as to the future solvency of Social Security, it's likely that those currently in their 50s will receive their benefits. You can get your statement and check your benefits here. The Social Security Administration has also indicated that they will resume mailing statements, so keep an eye out for yours. I suggest saving them, and always check to ensure that you have received full credit for all of your earnings.
Moreover, it is important to know and understand what your benefits will be if claimed at various ages. If you are married, there are a number of strategies to consider in terms of the timing of claiming your benefits. Here are a pair of good calculators from the websites of Social Security and the AARP.
Gather Info for All Retirement Accounts
These days it is not uncommon for someone to have worked at five or more jobs over the course of their career. This can lead to a number of retirement plans with former employers. If you are married and your spouse works, this number can easily double. This is of course in addition to your Social Security benefits.
read more
Sock Away as Much as Possible
For many retirement savers, these are the highest income years of their careers. This is the time to contribute the maximum amounts possible to your employer’s retirement plan, IRA accounts and the like. While these contributions will not have the years to compound as those made in your 20s and 30s, every bit helps. (See also: Financial Planning: It's About More Than Money.)
Check Social Security
While there is some discussion as to the future solvency of Social Security, it's likely that those currently in their 50s will receive their benefits. You can get your statement and check your benefits here. The Social Security Administration has also indicated that they will resume mailing statements, so keep an eye out for yours. I suggest saving them, and always check to ensure that you have received full credit for all of your earnings.
Moreover, it is important to know and understand what your benefits will be if claimed at various ages. If you are married, there are a number of strategies to consider in terms of the timing of claiming your benefits. Here are a pair of good calculators from the websites of Social Security and the AARP.
Gather Info for All Retirement Accounts
These days it is not uncommon for someone to have worked at five or more jobs over the course of their career. This can lead to a number of retirement plans with former employers. If you are married and your spouse works, this number can easily double. This is of course in addition to your Social Security benefits.
read more
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