How to Make the Most of Different Fort Worth Retirement Income Sources
A critical aspect of Fort Worth retirement planning that often goes overlooked is knowing how to make the most of your retirement income sources. You need to know that your retirement income can cover your needs for however long you live after you retire. This is why it’s important to sit down with a Fort Worth retirement financial advisor that understands your needs and goals so that they can be planned and accounted for years in advance.
Fort Worth Retirement Planning For Regular Sources of Retirement Income
Regular sources of retirement income include Social Security, a pension, or an annuity. These sources of income are guaranteed by an outside entity such as the federal government, your employer, or an insurance company, and involve a specific amount of retirement income that is, in most cases, given as long as you live. Part of your Fort Worth retirement planning could be to maximize your Social Security benefits by postponing filing for benefits. While you can file for Social Security retirement benefits as early as age 62, waiting until your full retirement age of either 65 to 67, depending on what year you were born, can increase your Social Security benefits by 20% to 30% for life. Similarly, your Fort Worth financial advisor should let you know that if you continue to postpone benefits even after you’ve reached your full retirement age, your benefits will rise by 8% for each year you delay up until age 70. For example, If your full retirement age is 66 and you wait until age 70 to begin receiving benefits, your monthly payments will be 32% higher for life (8% x 4 Years). There are no further payment increases for delaying taking benefits past age 70.
Fort Worth Retirement Planning For Variable Sources of Retirement Income
Variable sources of retirement income are essentially made up of your savings, businesses, and assets, including employer retirement plan accounts, IRAs, lump-sum pension distributions, and taxable savings accounts. These income sources should be the cornerstone of your Fort Worth retirement planning. As the one in charge of these accounts and assets, you are responsible for managing your money and deciding how much of it you will withdraw each year. There is no outside entity to guarantee that these sources will provide lifelong income in any specific amount. This is why you and your Fort Worth retirement financial advisor should have a withdrawal plan that is designed to make it last. Numerous studies suggest that following a disciplined withdrawal plan allows your savings to have a good chance of providing income for 30 years or longer. A rule of thumb is to start by withdrawing no more than 4% of your retirement savings in the first year of retirement.
Begin Your Fort Worth Retirement Planning With Retire Guides
A good retirement plan for your golden years involves dealing with tax laws, understanding the different types of retirement accounts, and even knowing which state is best suited to your wants and needs. This is where a professional Fort Worth retirement financial advisor can step in and make sure you make well-informed retirement decisions. Retire Guides specializes in helping people with their Fort Worth retirement planning. We can connect you with a Fort Worth financial advisor who will take the time to know and understand your retirement goals and work with you to make them a reality. Get in touch with us and make an appointment today!