Tips for Managing Your Money When You’re Retired
Part of estate planning is setting yourself up for long-term stability with your finances so you can distribute your assets to your loved ones as you wish.
Here is a quick overview of some helpful tips for managing your money in retirement.
- Continue to create income in retirement: This doesn’t necessarily mean you need to find another job. Instead, you can use annuities to transfer retirement savings into income, or sell off some investments to gain on your initial investment return.
- Consider your home: If you want to be more efficient with your money, you might consider downsizing if you’re living in a home that’s too large for your needs or in a location that’s too expensive. A reverse mortgage can also be used to eliminate your mortgage payments or borrow against your home equity.
- Wait to start Social Security: At age 62 you become eligible to start receiving Social Security payments. But if you delay until, say, age 67, this can result in up to hundreds of thousands of dollars of lifetime value saved. The longer you’re able to wait until you start Social Security, the more you’ll be able to maximize the benefits of those payments.
- Make the most of your withdrawals: Mandatory withdrawals begin at age 72 for certain retirement accounts. Keep in mind that each account may be taxed differently, so it’s important to strategize when and how you will take those withdrawals so you can make the most of them. Work with a financial advisor to develop a plan for this.
Interested in learning more about money management during your retirement years? Contact an experienced Tampa, FL estate planning lawyer at BaumannKangas Estate Law.