Retirement is a time to kick back, relax and do all the things you wanted to do but couldn’t while you were working. But life doesn’t stop once you retire. Just like in your working years, you never quite know what emergencies can crop up.
When you’re retired, emergencies can be particularly devastating. Having to use funds to cope with unexpected events can significantly sap your retirement funds and make it harder to live out the rest of your life the way you want.
No one can see the future, but with a little planning you might be able to protect yourself. Below are a few common emergencies that you may want to consider as you plan for your retirement:
Retirement is right around the corner, and you’re starting to plan for your post-working years. This means you might be in the last stages of planning your retirement income and creating a budget to make sure you won’t end up running out of money. And if you’re like 90 percent of people age 65 and older, you’re probably factoring in Social Security as an income source.1
On its face, Social Security may seem fairly straightforward. You retire, file for benefits and start receiving payments. Right?
Inheriting a large sum of money can be a double-edged sword. While it can create new opportunities and provide financial stability, it can also come with the challenges of managing new assets.
One way you can use your newfound funds is to put them toward your retirement. Doing this can help you have a comfortable retirement and let you live out your golden years the way you want. Below are a couple of ways you can make the most of your inheritance:
The Roth IRA is a popular investment vehicle with many appealing features. For instance, you can grow your assets on a tax-deferred basis and take tax-free distributions after the age of 59½.
Further, as opposed to a traditional IRA, a Roth doesn’t require minimum distributions at age 70½. Another advantage is that you can use your Roth to leave a tax-free benefit to your loved ones. With a Roth, after you pass away, your beneficiaries can receive the assets tax- and probate-free.
Carstens Financial Group focuses on providing comprehensive asset management, estate planning and life insurance solutions. Allow us to help you secure your financial future.