Questions about retirement include when to retire, how to minimize taxes, how to prioritize expenses, and how much to sock away before stopping work, notes Fox Business. Because of the initially high level of activity and the likely higher costs of medical care later on, the more savings, the merrier.Continue Reading
Understanding when to retire has a lot to do with incoming benefits. People who plan to draw Social Security payments should plan on working until they are at least 66 years old, when the full benefit kicks in. People who wait to start drawing Social Security until age 70 receive 132 percent of their monthly benefit as of 2015. However, some people have to draw from their savings to shore up their budget until that time, reports Fox Business.
Expenses shift for many people after retirement. Pursuing a dream of travel can push expenses upward, as does the potential decision to move somewhere else. It's vital to determine a budget of fixed expenses that fixed income sources easily cover. These are items such as rent, mortgage payment, utility bills, taxes, groceries, health care expenses and so on, notes Fox Business.
Putting between three and five years' worth of monthly fixed expenses into a savings account and then socking the rest away in a portfolio that has some more risk to it is wise. Mixing taxable, tax-free and tax-deferred accounts minimizes tax liability so that the retiree retains financial flexibility, as stated by Fox Business.Learn more about Financial Planning