Planning for retirement can feel overwhelming with many decisions to make. It’s helpful to understand the options available to help you feel more confident in your choices. Let’s break down some common questions retirees have.
Should I Roll Over My 401(k)?
If you’re changing jobs or retiring, you may have the option to roll over your 401(k). Deciding whether to roll over your 401(k) or keep it in an employer plan is a big decision. Factors such as control over investment options, potential lower fees, and distribution flexibility should be considered. Ameriprise provides a detailed comparison between employer-sponsored plans and IRAs to help you decide what’s best for you here.
What Are My Options Regarding Social Security?
Social Security can play a big role in your retirement income but deciding when to claim benefits might make a difference in how much you’ll receive over your lifetime. You can start claiming benefits as early as age 62, but your monthly benefits will be reduced compared to waiting until full retirement age. However, deciding when to start benefits isn’t just about maximizing your monthly payment. It’s important to think about:
- Your health: If you’re in good health and expect to live longer, waiting might make sense. But if you have health concerns or a shorter life expectancy, starting benefits earlier could be beneficial.
- Your overall financial picture: If you need the income to cover living expenses, you may not have the flexibility to delay Social Security. On the other hand, if you have other sources of income, delaying may be a viable option.
Why Is Longevity Risk a New Challenge for Retirees?
People are living longer today, and that’s great news—but it also means your retirement savings may need to last longer than you expected. Longevity risk refers to the possibility of outliving your savings. Proper planning and regular check-ins on your financial strategy can help address this concern.
Working with a financial professional can help you build a plan that factors in the possibility of a long retirement.
StackStone Wealth is Here to Help.
Retirement planning involves making a series of decisions that can affect your financial security for years to come. Whether you’re deciding how much to withdraw, when to claim Social Security, or how to manage your investments, having a clear understanding of your options is helpful.
If you’re feeling unsure about any of these decisions, it’s a good idea to consult with our team with offices in Dubuque, IA, Lake Geneva, WI, Marquette, MI, and Rockford IL, to help guide you through retirement planning.
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