Preservation | Investment Services

Request an Appointment

As you get closer to retirement, your wealth management strategies begin to shift toward preservation. You may elect to take advantage of investment options with less risk, and you’ll likely have more discussions with your advisor about what you expect out of your retirement.

Check the background of investment professionals associated with this site on FINRA’s BrokerCheck.

Five things to consider in the years before retirement

  1. Your estimated monthly income and allowances. Estimating how much you’ll need to cover your expenses in retirement can help you align your investment strategy with your goals.
  2. Where you’ll live. Is moving to a different location part of your retirement plan? For example, you might plan to move to be closer to family. If you plan to move, consider the cost of living in your destination when estimating your expenses.
  3. Your debt and taxes. Retiring to a lower income tax bracket is possible. Considering a one-time tax hit, moving from a traditional IRA to a Roth IRA could eventually produce a source of tax-free retirement income. But before you make any decisions, talk with a qualified tax professional to see if this move is right for you. Income and age restrictions may apply.
  4. Healthcare costs. Will you apply and be eligible for Medicare and will this cover your present and future needs? It is possible you or a loved one may need long-term care at some point during retirement and this could affect your overall bottom line.
  5. How you’ll spend your time. Possibly the most important is figuring out what your dream for retirement looks like. Will you take time to travel and see the world, or would you prefer to keep closer to home and pick up a new hobby? However you see your retirement it’s important to make sure your finances can support your overall goals.

Your retirement timeline

Age 50: Begin making catch-up contributions, an extra amount that those 50 and older can add to their 401(k) and other retirement accounts.

Age 59.5: No more tax penalties on early withdrawals from retirement accounts. Keep in mind that avoiding early withdrawals will give your money more time to potentially grow.

Age 62: The minimum age to receive Social Security benefits. If you delay, you’ll get a bigger monthly benefit in the future.

Age 65: The eligibility age for Medicare.

Age 66: The eligibility age for full Social Security benefits for those born between 1943 and 1954.

Add two months for every year between 1954 and 1960 to determine eligibility age for full Social Security benefits.

Age 67: The eligibility age for full Social Security benefits for those born in 1960 or after.

Age 73: Start taking minimum withdrawals from most retirement accounts if you haven’t yet. Not taking minimum withdrawals by age 73 may lead to heavy tax penalties.

Request an Appointment