Potential Sources for Your Retirement Income
If you’re getting ready for retirement, you’re probably wondering about the resources you have available. An experienced retirement income advisor in 10601 can help you take a periodical inventory of your assets and future income sources.
Knowing what is available to you and where you stand in these areas is extremely important when retirement day comes. With the help of a professional, you’ll be able to convert your assets into retirement income, learn about each of your potential income sources, and anticipate changes over time.
What Are Your Potential Retirement Income Sources?
Keep in mind that your Social Security benefits are periodically adjusted for inflation. Your decision to apply for your benefits has a massive impact on the amount of money you’ll get.
You have the option to take reduced benefits at 62 years old or you can choose to wait until you can receive your full benefits depending on the year you were born. Moreover, postponing your first payment is also an option so that you can qualify for a bigger amount. In most cases, financial advisors recommend waiting until you’re eligible for full benefits or even longer, if possible.
If you’re married to a spouse who’s also eligible for Social Security benefits, you’ll have to decide together whether one of you should draw spousal benefits or each of you should draw on your individual accounts. Drawing on individual accounts is better for couples who earned almost equal amounts over their working lives. However, if one spouse earned more than the other, the couple should compare their alternatives.
Furthermore, you can be sure that SSA will pay you benefits based on your record first if you’re eligible for benefits as a spouse and for your own retirement benefit. You’ll get a combination of benefits that are equal to the higher spouse’s benefits if your benefit as a spouse happens to be higher than your retirement benefit. Additionally, you may get additional benefits if you have a minor child.
You’re one of the lucky ones if you’re entitled to get a traditional pension because only a number of Americans are covered by pensions each year. However, it’s important to note that some companies may change their plan provisions even if you’re expecting pension payments. It’s best to ask your employer if your pension increases with inflation and how this increase can be calculated.
Pensions are usually offered as a single or a joint and survivor annuity. While a single annuity offers benefits until the employee’s death, a joint and survivor annuity offers reduced benefits that can last until the death of the survivor. Unless the spouse signs away their rights, taking a joint and survivor annuity is something that married couples are required to do by law.
You can choose to obtain a reverse mortgage or sell your home if you’ve managed to build up significant home equity or if you own your house outright. Should you decide to sell your home, you should use some of the proceeds of its sale to fund your retirement. Furthermore, you should decide whether to use the funds generated from the sale to rent or buy a less expensive home.
Alternatively, deciding to take out a new mortgage requires you to cover the mortgage every month. Make sure that your money generates enough cash to pay your mortgage.
Looking for a Retirement Income Advisor in 10601?
At 1879 Advisors, we provide effective and long-term wealth management solutions to ensure smooth financial sailing once you’ve decided to retire. Contact us today to schedule your appointment.