• Question
  • how can i maximize my retirement income

    Asked by a 70 year old man from Sackets Harbor, NY on 2/13/2013

    how can i maximize my retirement income

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  • Categories: Retirement Planning, Guaranteeing Income

Answers

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  • In general, these are some ways people use to increase their retirement income.

    1. Work in “retirement”. You can continue to build retirement assets while delaying your need to utilize those assets. You might be able to find something you enjoy doing part-time to supplement or delay your portfolio income. However, if you are younger than full retirement age and earn more than certain amounts, your Social Security Benefit (SSB) amount will be reduced. This article may help you know more about how work affects Social Security Benefits: http://www.ssa.gov/pubs/10069.pdf.

    2. You can wait to collect your SSB to maximize it. For example, if you retire and collect your SSB at your full retirement age, you can receive your full SSB amount. However, if you delay receiving your SSB beyond your full retirement age, your SSB will be increased by a certain percentage (depending on date of birth). The benefit increase no longer applies when you reach age 70. This website may help you know more about delayed retirement credit: http://www.socialsecurity.gov/retire2/delayret.htm.

    3. Maximize funding your retirement plan and get matching contributions. Check with your current employer to find out if you have retirement plans which allow your employer matching contributions to your plan.

    4. You can start saving as soon as possible. The sooner you start gaining the interest and the sooner that interest can start compounding.

    5. Use your retirement asset allocation to maximize your income. If you expect a higher rate of return on your portfolio, you can have a higher portion of stock. However, a higher rate of return carries a higher risk and could result in having even less to live on.

    You should review your specific situation with a qualified advisor to determine the best way for you to maximize your retirement income.

    This answer is provided as general information only and provided by Master’s students pursuing a degree in Personal Financial Planning at Texas Tech University. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or Certified Financial PlannerTM as to your unique financial situation.

  • Login to rate this answer:   Answered on 4/16/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.