It’s no secret that some states are more tax friendly than others. The same is true when it comes to retirement. Here we covered some of the most frequently asked questions we receive from retirees and people preparing for retirement.
When should you retire?
The right number or age depends on what your expenses will be. When you stop the cash flow from your job what is kicking in next? Pension, Social security, Roth IRA, etc. Remember, that money has to last for the rest of your life which may be another 30 to 40 years.
Social Security Rule of Thumb
There are pros and cons to taking social security at any age. If you are working at 62 years old it may not be tax efficient to claim social security at 62. As you may be brining in enough income where you won’t reap the rewards of claiming social security early. Also, if you delay claiming social security you will get delayed deferred credits.
Where should you live in retirement?
Look at where you will get the most bang for your buck. You want to look at property tax, income tax and what makes the most sense for you. You want to weigh out all the different factors in terms of what your expenses are going to be. Many folks move to tax free states.
Working in Retirement
If you can afford to not work another day after retirement, it is still important to have a purposeful living. It keeps you mentally sharp and physically active.
Retirement Assets (IRAs and Distributions)
Why do you have to take a distribution? You must take out distributions at age 70.5, it’s required by the government.
What age should I become a conservative investor?
There is no specific age to change your investing strategies. Therefore it really depends on when you will be using your money.