Robert Power offers an essential checklist for retirement savers.
The best way to save for retirement is to: save more, work longer, and delay Social Security. But experts also say there are many little-known retirement tips worth following, too.
1. Forget ‘The Number’
“The income stream your wealth can support matters much more than how much wealth you have.”
2. Don’t rely too much on the 4% rule
Limiting withdrawals your retirement accounts to 4% from might be a good starting place but needs to be revisited yearly
3. Think tax-efficient income
Dividends can be far more tax-efficient than bonds from an after-tax income perspective
4. Social Security is a household decision
Married couples have a wide range of options and it’s usually not a good idea for both spouses to begin Social Security early.
5. Asset location matters
It’s not just how much you have but “asset location,” the tax-efficient placement of your investments.
6. ‘Through,’ not ‘to’ retirement
Make your investments work “through” retirement, not just up to retirement.
7. Get multiple quotes
Get multiple quotes before buying any product or anything that involves a commission.
8. Plan for a long life
There is a 17% chance a male age 65 will live to age 95; there’s a 23% a female age 65 will live to age 95, and there’s a 36% that either member of the joint couple will live to age 95.
9. What’s the point?
“Retirement is not necessarily an end, but a beginning. Set those goals and plan out what you will need to do to achieve them. Is your retirement income sufficient to meet those goals?” Also, consider how you will change your lifestyle in retirement, not just from a monetary perspective, but what will your day-to-day life feel like?
10. Control those fears
Do you or your spouse have fears about retirement that you haven’t discussed? If so, start talking about them before it’s too late.
Read the details at: http://www.marketwatch.com/Story/story/print?guid=E19351A8-AB66-11E1-9705-002128049AD6