Is your goal to retire in 2023? At Googins Advisors, we want you to be as prepared as possible for this phase of your life, but before you step away from work, there are a few things you’ll want to do to put yourself in the best possible position. Our wealth management experts compiled a few tips for you to add to your retirement checklist.
Take Social Security When You Retire
We see advice from many financial planners recommending you wait until you’re 70 or full retirement age before taking your social security benefit. We feel this information is flawed and ignores some important factors. If you wait too long, you could die long before you draw benefits. You have been required to put 6.2% of your earnings into your social security account and the employer has put in another 6.2%. Social security can be taken as early as 62. Whenever you start, the monthly payment will increase in future years. AARP calculations have shown that you must be 78 and 8 months before you come out ahead by waiting. We recommend that you take out your social security when you retire instead!
Don’t Invest in Annuities for Retirement Income Promises
A common mistake we say is when clients invest money saved in 401k’s and other retirement plans and transfer it into annuity products for income. You will be sold on the income that will be provided to you for life. But, when you die, that income stream may die with you not leaving an income stream for your spouse or beneficiaries. Something you may not know is that you also don’t have access to money for one-off withdrawals with annuity payments. Please contact us on how to invest for income and wealth accumulation without losing control or ownership of your assets.
Put Together a Plan
A plan puts all the components of the retirement equation together to best serve your needs and goals. The plan designates where you pull money from, how much, and how to invest it. The plan changes according to what is happening in your life and what your priorities are. Googins Advisors can help you organize your assets and develop a plan that best supports your needs.