Most understand that waiting to claim Social Security benefits can result in higher monthly payments. However, many don't know that there are other ways to maximize their benefits, some of which depend on their marital status. Read on to better understand the strategies for maximizing your social security retirement benefits.
Will you pay higher taxes in retirement? It’s possible. But that will largely depend on how you generate income. Will it be from working part-time? Will it be from retirement plans? And if it does come from retirement plans, it’s important to understand which types of plans will be financing your retirement. Read on to learn how to ensure tax efficiency in retirement.
One of the most critical decisions you can make regarding your retirement is when you choose to claim Social Security. Deciding when to claim Social Security can make a difference in your monthly bottom line.
There was a time when you'd have a pension at the end of your working years. Now, of course, pensions are not as common as they were in the past, when people may have worked for the same company for all or nearly all of their working years. For those that do have a pension, they often only provide a portion of income needs in retirement. People typically don't work for the same company as long as they used to, reducing the impact a single employer will have on your retirement strategy. It's important to have insight into the range of investment options companies may use, even if they don't apply to you currently. Not all retirement strategies are the same. In fact, there is such a wide variety of retirement strategies that it is worth reading up on your choices. Here's a brief look at the different strategies and what they have to offer.
Tax planning is a year-round process, not just something that happens in the weeks leading up to April 15. It's a wise move to keep your tax planning efficient, educate yourself about potential tax scams, and plan your charitable distributions. Do you have a 401(k) or a traditional IRA? If so, you will receive income from both after age 72. However, if you have saved and invested much of your life, you may also end up retiring at a higher marginal tax rate than your current one. In fact, the income resulting from a required minimum distribution alone could push you into a higher tax bracket.
Whether your retirement is years away or right around the corner, your investment portfolio should be designed with your financial goals in mind. It needs to be forward-thinking enough to handle the whims of the market but flexible enough to make changes on the fly. One of the most important concepts for any investor to understand is asset allocation. Put simply, asset allocation describes the division of stocks, bonds, and cash that make up your investment portfolio. Although this concept is straightforward, it has one of the largest impacts on your financial future.
