But how do you know when you’re ready to retire?
The future is not something we enter.
What if you could test drive your retirement?
SO NOW THAT YOU’RE PRACTICING LIVING ON YOUR RETIREMENT INCOME, WHAT ARE SOME OTHER THINGS TO CONSIDER?
Understand your pension
How will Social Security play into my retirement?
- Depending on when you plan to retire, there may be some unique circumstances you need to be aware of. For example, if you are eligible for Social Security, it may benefit you to wait until your full retirement age (FRA) or later so that you receive your highest benefit.
- If you are retiring from an employer where you will receive a pension, you may also be subject to the Windfall Elimination Provision and/or the Government Pension Offset, which can reduce or eliminate your Social Security benefit.
Social Security claiming advice is not offer through, nor supervised by Lincoln Investment or Capital Analysts.
- If you are age 50 or older, you are eligible to make Catch-Up contributions to your retirement account! If you have a 403(b), 457, 401(k), you can contribute up to $24,500. That is $6,000 in addition to the 2018 maximum of $18,500. If you have a 457 available to you as well (like many public school employees in Texas), you can ALSO contribute up to $24,500 to your 457 for a total of $49,000 per year. There is a similar opportunity if you have an IRA. Those age 50 and older can stash an extra $1,000 into their IRA for a max of $6,500 in 2018.
- If you’re retiring before age 59 1/2, you may not be able to access your retirement assets without having to pay a penalty. If retiring after age 55, you may be able to access your employer retirement plan assets sooner (Age 55 Rule). With a 457, the rule is a bit different. You can access 457 funds without penalty once you sever employment with that employer.
WHAT IF YOU’RE BEHIND?
- If you’re under age 40, take advantage of time and compound growth! Save more and invest for growth in a diversified portfolio*. Understandably, stocks are subject to more ups and down than bonds or cash so you need to be comfortable with that risk.
- If you’re over 40, consider increased savings, reduced spending, and even working longer, if possible.
*Diversification or asset allocation do not guarantee a profit or protect against a loss.
LET’S MAKE A PLAN!
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Jesse is a graduate of the University of Notre Dame and earned his Master’s in Education from Harvard. In his education career, he served as a teacher, counselor and Director of Alumni for YES Prep Public Schools. He is a member of the Teacher Retirement System of Texas (TRS) and takes pride in helping fellow educators better understand their pension and plan for their future. Learn more about Jesse.