Most people spend their whole lives trying to save enough money for a comfortable retirement, but they don't think about other considerations, such as how they will withdraw that money, how they will pay for health care and when they will start taking Social Security. Here are some tips for dealing with those issues.
Withdrawing retirement money
Most people no longer have access to a traditional pension, so they won't get a monthly check in retirement, unless they set it up themselves. You can turn your retirement savings into a payment stream by buying an annuity. An immediate annuity is probably your best bet. You will pay a large lump sum, which will fund payments for a certain period of time. Though there are fees involved with annuities, you get the peace of mind of protecting your nest egg while getting monthly payments.
When to take Social Security
If you can afford to, you should wait to take Social Security until you reach full retirement age, which for most people these days is around age 67. The longer you wait, the more money you get. You can tap into your other retirement assets first.
Health insurance
The Affordable Care Act has made it much easier to retire early, because it allows you to get affordable health insurance. Once you turn 65, you can go on Medicare. Keep in mind that most of Medicare is not free, so you have to account for health spending in your retirement budget.
Retirement is an exciting time, but you must make sure you are prepared for it. Planning for these and other elements will help you enjoy your retirement more.
Michele Kief is a Financial Advisor. She can offer a wide range of services, from assisting you select individual investments to establishing a retirement plan. With use of a diverse assortment of company resources -- including research analysts and economic and market experts -- Michele Kief can help you make informed investment decisions according to your unique needs.
Withdrawing retirement money
Most people no longer have access to a traditional pension, so they won't get a monthly check in retirement, unless they set it up themselves. You can turn your retirement savings into a payment stream by buying an annuity. An immediate annuity is probably your best bet. You will pay a large lump sum, which will fund payments for a certain period of time. Though there are fees involved with annuities, you get the peace of mind of protecting your nest egg while getting monthly payments.
When to take Social Security
If you can afford to, you should wait to take Social Security until you reach full retirement age, which for most people these days is around age 67. The longer you wait, the more money you get. You can tap into your other retirement assets first.
Health insurance
The Affordable Care Act has made it much easier to retire early, because it allows you to get affordable health insurance. Once you turn 65, you can go on Medicare. Keep in mind that most of Medicare is not free, so you have to account for health spending in your retirement budget.
Retirement is an exciting time, but you must make sure you are prepared for it. Planning for these and other elements will help you enjoy your retirement more.
Michele Kief is a Financial Advisor. She can offer a wide range of services, from assisting you select individual investments to establishing a retirement plan. With use of a diverse assortment of company resources -- including research analysts and economic and market experts -- Michele Kief can help you make informed investment decisions according to your unique needs.
