facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
%POST_TITLE% Thumbnail

Retirement Planning: Key Issues to Consider Before You Retire

Retiring is a significant financial milestone, and it's important to consider several key issues before you take the plunge. From pensions and Social Security to cash flow needs and early retirement, this guide covers key issues you need to know to help you have a secure and successful retirement

When it comes to retirement, there are several important issues that you should consider before making the big decision. 

First and foremost, you should think about how your cash flow needs may change once you retire. If you anticipate that your expenses will increase or decrease significantly, it's a good idea to develop a new income and expense plan to help you manage your finances effectively. 

If you are fortunate enough to receive a pension, there are a few things to keep in mind. First, there may be multiple payout options available to you, such as single, joint, or lump sum payments. It's important to carefully consider which option is best for your unique financial situation. Additionally, it's worth noting that your pension, Social Security, and life insurance benefits may be able to be coordinated in a way that maximizes your overall financial security. 

It's also worth considering any pensions or retirement benefits that you may be eligible for from previous employers. These can often be overlooked, but they can make a big difference in your overall financial picture. 

If you're planning on retiring early, there are a few additional considerations to keep in mind. For example, if you earn more than $21,240 before reaching your full retirement age (FRA), your Social Security benefits may be reduced. Similarly, if you earn more than $56,520 in the year you reach FRA, your benefits may also be reduced. It's important to be aware of these rules and plan accordingly. 

On the other hand, if you leave your employer after turning 55, you may be able to access your 401(k) penalty-free. This can provide a helpful source of income during your early retirement years. 

If you or your spouse receive a pension from an employer that did not withhold Social Security taxes, you should be aware of the potential impact of the Social Security Windfall Elimination Provision or the Government Pension Offset. These rules can affect the amount of Social Security benefits you are entitled to, so it's important to understand how they may apply to your situation. 

If you are currently married, there are additional Social Security claiming strategies to consider. These can help you and your spouse maximize your benefits and ensure that you are financially secure in retirement. 

Finally, if you were previously married and are now divorced or widowed, there are a few things to keep in mind. If your marriage lasted at least 10 years and ended in divorce, you may be eligible for benefits under your ex-spouse's record. Similarly, if your marriage lasted more than nine months and ended due to your spouse's passing, you may be eligible for benefits under your deceased spouse's record. It's important to carefully consider all of these factors as you plan for retirement. 

In conclusion, retirement is a complex and important financial decision that requires careful planning and consideration. By keeping these key issues in mind, you can ensure that you are well-prepared for the financial challenges and opportunities that lie ahead.

This content may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Ascend Investment Partners is not a legal or tax advisor. You should consult with your attorney, accountant and/or estate planner before taking any action.    Ascend Investment Partners did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Ascend Investment Partners or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy   Services offered through Kesler, Norman & Wride, LLC dba Ascend Investment Partners, a Registered Investment Advisor. This message and any attachments contain information which may be confidential and/or privileged and is intended for use only by the addressee(s) named on this transmission. If you are not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are notified that any review, copying, distribution or use of this transmission is strictly prohibited. If you have received this transmission in error, please (i) notify the sender immediately by e-mail or by telephone and (ii) destroy all copies of this message.  If you do not wish to receive marketing emails from this sender, please send an email to garrett@ascendinvestment.com    Please note that trading instructions through email, fax or voicemail will not be taken.

To Get Started Click Here


Sign Up for Email to stay in touch