At an AARP seminar Elaine King was invited to share her strategies for retirement planning. King is a seasoned financial planner who provides clients with financial strategies and helps them understand, organize, and manage their money. In her seminar, King discussed how to define financial retirement, create a retirement budget, and evaluate the monetary impact of your health on a budget.
When considering money allocation during retirement, King said it is important to know your needs versus your wants. She elaborated by saying, “it’s a good idea to separate your expenses into those you have to pay and what you’d like to spend your money on.” During retirement, money organization is immensely dependent on the income is available based on annuities, living expenses, and outstanding debt.
Factors affecting your cost of living may require you to consider downsizing or moving to a less expensive city. King added that it is also helpful to know your health history and health risks. Knowing how your health care expenses will be covered is crucial to maintaining a realistic retirement budget.
King also communicated that tax circumstances will guide how you plan your budget: “Asses how much you would need to pay in taxes if you sell assets from a Roth account or Traditional IRA.” King stated that you can lower your taxes by withdrawing money from non-retirement accounts.
King mentioned tips to maximize your budget by learning the rules and options you have for withdrawing funds from various investments and your 401K. She also highlighted the uncontrollable factors to consider when planning your retirement, such as inflation and the longevity of your life. King concluded the presentation by adding, “retirees need to invest for both income and growth. This practice will keep you ahead of inflation and help you continue to generate income.”
AARP.org has online calculators to help you plan your retirement now!
