Preparing financially for your retirement isn’t about endlessly stockpiling more money. It’s about making the most of what you’ve already saved. Focusing on smart financial strategies can pave the way to retire sooner than you imagined. Here are four specific steps that can help you get there:
1. Generate Income in Retirement
Successful retirements are not built on assets, or by achieving some “magic number”. They’re built on your ability to generate income in retirement. Today’s best income-generating strategies include items like reducing your tax burden, maximizing social security, guarding against inflation, and more. Get a bigger picture of your retirement income options with this blog on building your retirement income workhorse.
2. Strategize Around Social Security Benefits
It’s hard to believe, but two different people with nearly identical scenarios (age, retirement date;
income, etc.) could receive dramatically different amounts in Social Security benefits, like tens of thousands, if not hundreds of thousands, of dollars difference in a lifetime of benefits. So, don’t take your benefits at face value. Your strategy to claim Social Security should not be based on just the amount of your benefits, but also their impact on your taxes, Medicare premiums, and spousal benefits. A customized Social Security analysis can help get you on the right track so you can get the most with Social Security.
3. Plan Taxes And Keep Money in Your Pocket
There’s a big difference between tax preparation, versus tax planning. Tax preparation is something you do with your accountant or CPA once a year. Tax planning is an ongoing effort that happens year-round. It takes into account your long-term financial goals and makes more substantial money-moving adjustments to minimize your tax liability – potentially to the tune of a small fortune. Its purpose is to create a proactive strategy for savings accomplished in advance of your retirement. The sooner you get started, the more you could potentially save.
4. Manage Risk Through Diversification
Diversification is one of the most underrated aspects of financial planning. Many people think it’s just about having a mix of stocks, bonds, and mutual funds, but true diversification goes much deeper. It’s about spreading your investments across different asset classes, sectors, and even geographic regions to reduce risk and increase potential returns. Proper diversification can help protect your portfolio against market volatility, ensuring that a downturn in one area doesn’t derail your entire retirement plan.
Having a strategy for income, Social Security, taxes, and diversification can help you retire much sooner than you think. Without a plan for these key areas, you could miss valuable opportunities to reap rewards from your hard-earned savings and investments. Ensure your retirement plan is working its hardest for you. Call Secured Retirement today and uncover your untapped retirement resources: 952-460-3290.
