Retirement Planning Strategies From Wealth Management Experts
Among the things that set apart the world’s wealthiest people is the drive to not only grow their wealth but also to preserve it for the long term. With the help of wealth management experts, the wealthy successfully hold onto their wealth long after retirement.
Whatever your economic class, proper planning will help you realize the comfortable and secure retirement you envision for yourself. Here are five golden retirement planning strategies from wealth management experts that will help you live your retirement years to the fullest.
Expert Retirement Planning Strategies
1. Minimize Your Debt
Pay off existing loans and avoid getting into debt as you prepare for your retirement. This way, you’ll have more funds for your retirement years. By paying off your loans, you can channel what would have been the interest expense on these loans into the retirement account.
The stress of owing money in your non-earning years alone may be enough to keep you from enjoying your retirement years. Do your best to be debt-free by skipping on luxuries and paying off even the smallest debts you owe.
2. Maximize Contributions to Retirement Accounts
You can grow your savings by contributing as much as possible to your individual retirement accounts IRAs, 401(K), and other retirement accounts. If your employer sponsors retirement plans, you can look forward to them matching your contributions to these retirement accounts.
Money contributed to your retirement accounts is tax-advantaged. Grow your savings by contributing more, and you can invest these savings later for great returns.
3. Consider Annuities
There are several types of annuities to choose from. These annuities vary in terms and features, and while some will require that you defer receiving benefits until a set date, others allow you to start getting the benefits right away.
Annuities are low-risk investments that you can rely on for some income in the form of monthly payments in your retirement years. You can use some of your retirement funds to buy one or more annuities. You can buy the annuities on an after-tax basis, which means that you’ll only owe taxes on the annuity’s earnings.
4. Delay Your Social Security Benefits
You can maximize your social security benefits checks in a couple of ways. The first is by staying on the job for a little longer. Your full retirement age depends on your birth year, and the full retirement benefits are payable at this age. Retiring sooner will only result in benefit reduction, whereas working for longer, be it full-time or part-time, will allow you to continue making more contributions to your retirement portfolio and give it more time to grow.
Secondly, you can maximize your social benefits by delaying redemption.
5. Create Avenues for Additional Retirement Income
Identify feasible financial investments that will earn you some income during retirement. For example, investing in stocks that pay dividends will ensure you have an additional income stream when you retire. You can also look into mutual funds and bonds to diversify your investments.
In addition to financial investments, you can also consider starting a side hustle. This strategy may be especially attractive if you desire to stay mentally and physically engaged even in your retirement. From joining the gig economy and monetizing a hobby to leveraging your years of work experience to become a consultant, the opportunities to increase cash flow are plenty.
Hire a Financial Advisor
You don’t have to plan for retirement alone. A knowledgeable and experienced financial advisor can help you get where you need to be in achieving your retirement goals. It is also best to start as soon as possible.
Find a financial advisor with an optimally suited perspective who understands your retirement situation. With professional guidance, you will know how much you need to enjoy the quality of life you desire at retirement and a clear roadmap on how to get there.
