As you begin the approach to retirement, you’re facing a multitude of different decisions that will impact what could be the best years of your life. The choices you make now could mean the difference between a comfortable retirement and a stressful one spent worrying about how you will manage to pay the bills. Oftentimes, many people who find themselves in this unfortunate situation took what they assumed were all the right steps, but somewhere along the way they made one small mistake that had devastating effects. That’s why it is so important to enlist the help of a financial planning service in Des Moines, IA. A financial planning consultant can help you get started or just review your portfolio to identify any major problems.
Consider these four decisions where the expertise of a professional financial planning service in Des Moines, IA could help tremendously:
- Determine when to file for Social Security: Couples have a range of different options based on their life expectancies, future survivor benefits and earning histories when determining when it is time to begin filing for Social Security. Typically, most single people accept the benefits at the age of 62 or wait until the full retirement age of 66. This can be dictated by the fact that higher benefits are paid out the later you retire. But is that the best option for you? Let a professional help you answer that question to ensure you will be financially stable during your retirement.
- Paying off mortgages: Many near-retirees strive to pay off their mortgage before they officially leave work. That isn’t always the soundest option, though. Today’s low interest rates on long-term fixed mortgages actually might make continuing to pay it off on a monthly basis the better option when the saved money is invested.
- Portfolio withdrawals: The years leading up to your retirement are all focused on saving as much as possible. Retirement means having to withdraw that money with planning and precision so it will last for decades. Identifying the best way to pull from your accounts could impact your overall retirement income. For example, withdrawing from taxed accounts is a safe way to avoid unexpected taxes. On the other hand, those expecting an income tax increase will likely want to prioritize any tax-deferred accounts. An experienced financial planner will review each option to help you determine the best withdrawal approach.
- Pension: Are you planning to take your pension as a lump sum or an annuity? A lump sum gives you the freedom to invest the money however you see fit, while an annuity has the guarantee of a lifetime of steady payments. Ultimately, you’ll need to review your personal situation with a retirement planner to identify the better choice.
Planning for retirement doesn’t have to be confusing. Seeking the help of a financial planning service in Des Moines, IA will help you ensure you will be protected during your retirement years. Don’t wait until your 80s or until you are already broke to get this vital help. Call the retirement experts at Accounting & Tax Professionals, PLC today to start preparing for the best years of your life.