Tips to live comfortably during your retirement years
When entering the retirement stage of life it’s important to have your finances in order. You’ve spent a lifetime preparing for retirement, it’s important to take the time to ensure that your income, your investments and your estate plan are properly organized to allow you to live comfortably during your retirement years.
- Your preparation for retirement could provide you with multiple income sources: social security, traditional employer pension income, and your personal savings and investments. Currently, 159 million or 94% of working citizens are covered by Social Security . The amount of benefits received depends on when you begin collecting and your job history. The formula used by the government is calculated based on your 35 years of highest earning however this benefit is permanently lowered by 20% to 30% if you begin collecting before the set retirement age. While social security is a source of consistent income, in most cases, additional funds are necessary to maintain a comfortable lifestyle.
- Challenge yourself to stay within your budget before you retire. For six months, live like you are already retired. We don’t mean to say you should be golfing every day but rather set aside any income that you receive that will be more than what you’ll receive in retirement. Of course you’ll have to make adjustments for work related expenses such as gasoline, etc. You may find that you have no problems living within your new means, or you may find that you’ll need to sharpen your pencil and start spending less. If spending isn’t the issue and the lack of income is, you may be faced with the hard decision of postponing your retirement until you are in better financial shape. Either way, it’s easier to adjust your spending habits before you retire rather than finding out when it’s too late.
- A key aspect to successful estate planning is staying up to date. Any sort of changes in your lifestyle, laws, and/or the economy may result in the need to adjust your plan. As a general rule, large estates should be reviewed annually, small estates should be reviewed every 5 years and if your estate has changed by more than 20% in the last 2 years. Review may also be necessary upon economic changes, employment changes, family changes (death, birth, divorce…), insurance changes, business interest changes, major transactions, and the death of a trustee, executor or guardian.
*The opinions and forecasts expressed are for informational purposes only and may not actually come to pass. This information is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any specific security or investment plan. The representative does not guarantee the accuracy and completeness, nor assume liability for loss that may result from the reliance by any person upon such information or opinions.
Securities offered through Securities America Inc., Member FINRA/SIPC and advisory services offered through Securities America Advisors, Inc. Armstrong Advisory Group and the Securities America companies are unaffiliated. Representatives of Securities America, Inc. do not provide legal or tax advice. Please consult with a local attorney or tax advisor who is familiar with the particular laws of your state. 6/12
"Social Security Basic Facts." Social Security Online - The Official Website of the U.S. Social Security Administration. 5 Aug. 2009. Web. 27 July 2010.
Securities offered through Securities America, Inc. Member FINRA / SIPC. Advisory Services offered through Securities America Advisors, Inc., an SEC Registered Investment Adviser. Armstrong Advisory Group and the Securities America companies are unaffiliated.
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