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Is Your Future Retirement Secure?

By now you know the drill: the more you save for retirement, the better you will be prepared for retirement. However, saving is merely one portion of the retirement equation. You want to have a comfortable and secure retirement. It may be frightening to know that the saving and financial vigilance does not end once you leave the workforce.

To ensure that you have a secure financial future, you should also review your assets. Also, your liabilities and focus on how you manage and control your expenses.

If you’re overwhelmed, then you aren’t alone. We’ve compiled a few tips and tricks to help you stabilize your future.  

Beware of fraud and secure your retirement

According to the Investor Protection Trust, one in five Americans over the age of 65 has fallen victim to financial scams. That is a staggering 20{bc669dfb3651bb8509a96034cbe7494d3a811fc0eedf0ddccb239fb9cb737439} of individuals at or nearing retirement age.

When you are saving for our future, you want to be sure to protect your nest egg. Before making any financial decision, you should always do your research. Be sure to visit the SEC’s website to check a company’s background before buying stock or investing, and always run your decisions by a trusted financial adviser. Additionally, websites like provide you with more information on how to protect what you’ve worked so hard to earn. A little bit of vigilance goes along way toward protecting your future.  

Ignore Your Retirement Fund

Okay, we’ll admit: that title is misleading. You shouldn’t completely ignore your funds. You should check them regularly to make sure you are on track with your savings and investments. But, you shouldn’t think of your retirement account as extra money, either. Don’t touch that money until retirement to protect yourself against fund-draining taxes and withdrawal penalties.

Hire An Expert

A solid financial adviser is a strong asset to making sure your money is well-protected. How do you know your financial adviser is a solid, reputable choice? Check out their credentials on the Certified Financial Planner Board’s website. In addition to a solid financial planner, you should be working with a knowledgeable broker.

Live Within Your Means

Living frugally will make sure you have enough money to see you through your non-working years. A financial planner can help you calculate how much money you will have in a near future. Also, they can tell if you are on track with your current rate of spending and saving.  

Living within your means also means you should carefully choose where to retire. Many cities across the United States that have a low cost of living may be great places to retire. If you’re considering relocating during your later years – to a retirement community or another city – you should do your research before choosing the most cost-effective option.

Know When To Take Your Benefits

Should you take Social Security later or earlier in your retirement? How will you go about taking out your retirement funds? How long should you left your investments sit before cashing in? There is a lot to consider when gearing up for the transition to retirement. You should know what each choice means for your future. You should discuss your financial options with family and advisors and stick with your course as best as you can.

Additionally, you may not have known that you can take out withdrawals on your IRA account before the age of 59 ½ – free of penalties. This is because of an IRS rule called the “substantially equal periodic payment:” rule, which allows you to take a predetermined amount of money from your account up until you’re 59 ½, or every year for five years. These funds are taxed, but you can always stop withdrawals – which are linked to your life expectancy – if you need to. You can find out more information on the IRS website.

Plan for the Best – and the Worst for Retirement Security

The good news is that – thanks to breakthroughs and innovations in how we approach health and in health-related technology – we are living longer than our predecessors. The downside to that is that many individuals will find it necessary to plan for a longer retirement – and the health costs that come with a longer retirement, particularly long term care costs.

Know the Market

Particularly, how inflation is going to impact your retirement nest egg. What you’ve saved so far may not be enough to get you through retirement – even at a low rate of inflation. Additionally, you should pay attention to market trends. When the Dow drastically dropped at the beginning of September, many retirees panicked and began switching the course of their retirement accounts to options with less risk.

This was a big mistake because – despite the volatility of the market – the individuals that stayed the course may experience a better return on their investments. You should already diversify your retirement portfolio and preparing for panics like the one in early September. If your financial plan is solid and takes into account market trends, you will have a much easier time saving for retirement.

Securing Your Future

Planning for a secure retirement is not easy. Think of it like juggling: each ball in the air is an aspect of retirement and if you drop one, the others are sure to follow. With a little advanced planning and the help of financial experts, you can ensure that your retirement is secured.