Building A Retirement Financial Plan That Works for You
Decisions made today can make a difference tomorrow – and move you closer to achieving the lifestyle in retirement that you’re striving for. The foundation is built on individual choices that will define a retirement financial plan based on your priorities. At the outset, it is important to have an understanding of your sources of income, how you are likely to be impacted by taxes, and the level of spending you anticipate – whether for basic expenses or trips to visit grandchildren or travel the world. There are key areas to consider, including these:
With the overall goal of reducing taxes over the long term, it’s helpful to look to future years and tax events that could cause increased taxation – and to understand how Social Security payments are taxed. Delaying the start of Social Security income by using other income sources for expenses while converting traditional IRAS to Roth IRAS is among the approaches worth considering.
As individuals approach retirement, they are faced with the looming presence of Required Minimum Distributions, known as RMD’S. It’s important to explore with a financial professional the impact of conversion to Roth IRAS. A proper Roth Conversion, for example, may save a significant amount of money in future taxes.
The goal of a retirement plan is to develop a retirement paycheck – a steady source of funds that will help to minimize your taxes and maximize your retirement. It is a goal that can be within reach – and there’s no better time than now to get started.
Ben Fuchs is a Certified Financial Planner ® and a Certified Private Wealth Advisor ® professional, founder of Fuchs Financial with offices in West Hartford, Middletown and Middlebury.