I get it. Retirement is the last thing you want to be worrying about, but you can’t avoid terms like social security and 401k.
It really isn’t as complicated as they make it seem.
In fact, slipping into a healthy and wealthy retirement can be done by anybody… as long as they know these 4 secrets…
In order to slip into that retirement of health and wealth you’ve been dreaming of, you need to make sure that you don’t retire before you have the means to.
When you start accumulating wealth through various investing avenues, it’s easy to want to just take your money and run. But this will be the downfall of your luxurious retirement.
You need to allow some time for your money to grow in order to make sure you don’t jump the gun and end up falling financially short.
Giving your money as little as a couple extra years to grow could mean the difference between raking in wealth and going broke.
Create an efficient tax plan.
This all boils down to whether you have a 401k or a Roth IRA account. A 401k is funded with pre-tax dollars, whereas a Roth IRA is funded with post-tax dollars.
Most people adopt for the pre-tax option with a 401k, but a mixture of both would be the ideal preference.
You see, although a 401k is funded with pre-tax dollars, you get taxed on the other side when you withdraw.
A Roth IRA may seem like a burden now, but since the account has already been taxed, there’s no taxes on the other end when you retire.
So really, you’re taking a gamble on your local, state, and federal tax rates.
Maximizing your contributions to both accounts will allow you to capitalize on the best of both worlds.
Understand your Social Security benefits.
I’ve spoken to you many times about the various Social Security benefits, but the cold, hard truth is that too many people don’t take advantage of them.
I won’t go into detail about all of them here (as our other Retirement Calculator articles are a great resource for benefit information), but I will say that my favorite loophole is utilizing the spousal benefits.
In short, you’d claim all your benefits upon retiring while your spouse defers theirs. Once your benefits have been claimed entirely, your spouse will claim their benefits.
This is probably the most overlooked loophole.
You may notice that when I’m talking about trading stocks, I usually note that diversification is one of the worst things you can do (the money you earn on one side will be lost on the other).
But with retirement it’s a little different.
When you’re trading stocks, you have full control over opening and closing the trade at any given time (with no tax repercussions).
When talking about your retirement account, you’re stuck with your investments until you’re 65.
That’s not to say that it’s a bad thing, but you certainly won’t be using any of our overnight gains systems.
Diversify your retirement account with a fair mixture of stocks, bonds, gold, and other commodities for the best results.
Using all 4 of these retirement secrets will ensure that you’re able to slip into a healthy and wealthy retirement, so you’ll never have to worry about money another day in your life.