Some people are retiring (sometimes early) using a “pretty vanilla” strategy, which is essentially investing in low-cost index funds and maximizing 401(k) and health accounts. Most people who have had a traditional pension or other employer plan unanimously agree that it was their savings that made a difference. Savings in IRAs, 401(k) and 403(b) plans also allow individuals to focus on retirement goals for effectively.
Another tactic may also include taxable investments, surprisingly. Some plan to wait until age 70 to make partial conversions to Roth IRAs to minimize future taxes and required minimum distributions.
It is sometimes even advised that individuals wait until age 70 to claim SS to maximize benefits, but timing depends on individual circumstances. Ultimately the key to successful retirement is matching income with expenses. Talking with others who have made either good or bad decisions regarding retirement can be the best way to discern what the most prudent course of action might be, and the earlier those conversations start, the better.
Article Originally Published in Kiplinger’s Personal Finance Magazine
Original Article By: Janet Bodnar
Original Wording Changed for Reposting Purposes on Seniorquote.com