Wow how time flies! It seems like your 40s were just a few years ago. That’s how life is…always moving forward…whether we’re ready or not! Yet always remember that the age you are now is earned not given. You’ve gotten to where you are now by making some smart decisions along the way. You’ll get to where you want to be in the future by making some WISE decisions now.
The number 1 most common goof is not understanding all of the variables that will affect your retirement! At this point in your life, you can’t afford to learn the hard way anymore. So what things should you be thinking about and actually doing to ensure your finances are in order and that you’re ready for your eventual retirement? The answer is quite simple.
At this time in your life, you want to be monitoring your retirement plan assets. You also should consult an experienced and competent financial advisor to help you integrate and optimize your social security benefits. This is particularly important if you and your spouse have worked under social security for a number of years. Proper social security planning could result in you getting thousands more in social security benefits over your lifetime.
Next, early retirement may be a serious consideration. With “the affordable care act”, people who once hesitated to take an early retirement because of the high cost of health insurance now have this as a very beneficial option. With market place pricing and government subsidies, early retirement has become a lot more attractive to a lot more people.
Keep in mind that early retirement under social security is not available until age 62. There are pitfalls that need to be avoided if you take social security prior to normal retire age. One major problem is if social security early retirement is taken, there is an offset of your benefit based on earned income during early retirement. So, if you plan on taking early retirement social security, you need to understand the rules if you plan on continuing to work. At Bill Kinder & Associates, we’re experts at helping you with this.
You do want to be careful who you work with. One mistake at this point in your life, is not easy for you to recover from. It is common for many of the big name brokerage houses to not focus on you as a person and your unique personal and financial goals. Instead they focus on selling you products that ultimately earn them high commissions yet do not help you accomplish your personal needs and life goals.
What’s better about our firm is, that we focus on your needs and goals first and not a product sale. After your planning process is completed, we get your agreement on any products that may be needed to fulfill your goals. Rest assured, with over 35 years experience, both in retirement and estate planning, we have a unique perspective on positioning your money, using unique tax planning strategies to minimize your taxes owed, protecting your assets and enjoying a great quality of life now and during your retirement.
At Bill Kinder & Associates, we also help to ensure that you don’t outlive your income. Our firm focuses on personalized ‘Peace of Mind Planning’ and helping you reach your goals.
Their Situation: John and Sally – age 65 and age 65.
Their Challenge: John works for a local mine manufacturing firm. He likes his work and would prefer to work until age 70. Sally is a school teacher and thinking she’ll retire at 66. They have questions as to when and how to take social security benefits.
Our Solution: First, we needed to ascertain the social security benefit each would receive at normal retirement age 66. Then, we completed a social security maximization report.
Their Outcome: By using this report John would be eligible for $2,300 per month. If he took this benefit while working, his social security benefit would be exposed to having 85% of the benefit taxed! He decided to let Sally file for her benefit of $2,000 at age 66. This allowed him to file for spousal benefit for himself and allow his work benefit to increase by 8% per year until age 70. He would receive a spousal benefit of $1,000 per month while still working and switch to his work benefit at age 70 when he retired, which would be approximately $3,036.
Because of this planning both John and Sally will receive several thousand dollars more from social security over their life expectancy. In addition, because John’s benefit has increased to $3,036, if he dies before Sally, she will receive a significantly higher survivor benefit from social security. Because John had accumulated $500,000 in his 401K plan, he can do an in service withdrawal and transfer it to a personal IRA account that allows him to do further planning and defer taking income until required minimum distribution occurs at age 70 ½.
Want to know more about how we can help you better your current financial position and plan for a comfortable retirement? Call now for your FREE ‘WISE Money’ Consultation – (304) 250-0250