Gabe gives insight on maximizing your retirement savings with a few key strategies.
Three Different Ways to Maximize your Retirement Savings Depending on your Circumstances
There are a few ways we like to strategize in order to maximize savings. Here are the factors SRP likes to consider:
The first simple idea that we implement with clients is to lower the withdrawal rate in the early stages of retirement. This, in turn, allows the savings to last longer and gives opportunity for the savings to yield higher rates of return than if you had withdrawn more in the beginning.
A different outlook to “Maximizing” is to maximize on your fun in life. While you are healthy and feeling more mobile in the early stages of retirement, maybe you’d like to withdraw more annually in order to spend on travel and other activities. Taking advantage of the youth of your retirement and the mobility that comes with it.
The final thought or idea is to consider all the avenues of income that you have in retirement and how to maximize those. Some individuals have a monthly pension, others have social security. Irrespective of that, do you take money from an IRA or an after-tax account, or an account where the tax has already been paid? These finer details matter in being efficient with the income you have in the 20-30 years of you have of retirement.
