Top 4 Key Retirement Planning Steps

Just picture it: You are on a sandy beach. Jimmy Buffett music is playing on a calypso drum, your toes

are in the water, and you never have to go to work again.

You can make this tropical fantasy your new reality with proper retirement planning. All it takes is

implementing wise financial strategies that support your retirement goals.

At Abundance, we assist clients with their retirement aspirations by providing:

• Financial consultations

• Wealth planning

• Investment management

To be wise, plan for the future now, no matter your current age. Prepare for your golden years in the

sun today!

1. Explore Different Types of Retirement Accounts

Your first step in prepping for retirement is checking to find out if you are eligible for employer-

sponsored retirement plans, such as a 401(K) or a retirement plan with matching dollars. Your

contributions to your accounts can grow, tax-deferred, until you leave the company or retire.

If you are a freelance worker or your company does not provide a retirement savings account, you can

create a Traditional Individual Retirement Account with a broker.

Examples of different types of savings accounts include:

Traditional IRA - subject to income tax

Roth IRA - no immediate tax deduction

Self-directed IRA - not tax-deductible

Simple IRA - no available tax advantages

Simplified Employment Pension Plan (SEP) IRA - you will owe taxes at your current tax rate

Solo 401(k) - typically, you will owe taxes on contributions

Life Insurance Retirement Plan - only benefits high-net-worth individuals

2. Build Your Retirement Savings Through Investing

If you are starting retirement planning in your 20s and early 30s, you have the time to make some risky

investing choices. As the brokers on Wall Street preach, you have to accept high risks to receive high

rewards. Regardless of your age, you could add retirement money into your account by investing in:

• Stocks

• Bonds

• Mutual funds

We recommend hiring a financial consultant to discuss your financial goals in conjunction with your age,

marital status, familial obligations, annual pre-retirement income and the ever-changing marketplace.

3. Diversify Your Retirement Income

When retirement planning, you need to consider your annual income and how much you spend per

year.

If you are spending more than your benefits, investment portfolio, and projected pension income can

provide for, then you need to diversify your retirement funds.

An easy solution would be to downsize your home once you are closer to 65. That way, you can free up

money for the activities you want to enjoy instead of paying off home loans.

4. Determine the Full Retirement Age

Age 65 is the magic number when it comes to early retirement. However, you could start collecting a

portion of your retirement Social Security benefits as early as age 62.

At Abundance, we recommend that our clients wait to collect their benefits until the full retirement age so that they receive full benefits. If you were born in 1960 or later, you will need to wait until age 67 to claim your benefits, and if you delay up to age 70, your benefits can increase.

Craft a Retirement Plan With Us at Abundance

For help with retirement planning, contact our team at Abundance by calling 678-884-8841 or send us fill out our form.