Published On: Tue, Dec 15th, 2020

3 Tips for Maximizing Your Retirement

An important consideration for any individual is retirement. Most people would like to stop working at some point and spend the remainder of their years relaxing. However, with the rising cost of living, more money is needed for retirement than ever before, and most Americans are not investing enough to reach the necessary amount by retirement age. As you gradually build your assets, you may want to consider consulting a professional wealth management company like the one run by Fred Baerenz, AOG Wealth Management. There are some actions you can take on your own to help build up that retirement reserve.

3 Tips for Maximizing Your Retirement

1. Delay Social Security Benefits

After you reach 62, the age when you can begin receiving social security, it might be better to wait on those payments until you hit 70. There is a not widely known feature of Social Security: Every year benefits are pushed back until age 70, the monthly amount increases. This means waiting will raise your social security income.

2. Meet Employer Contribution Matches

Some companies or bosses will match what you put into your 401(K). There is often a limit to what they are willing to match, and it is important to hit that limit in order to take full advantage of it. This will help maximize how much is in your retirement fund when you retire.

3. Invest in an IRA

While many employers provide retirement as part of a package, simply relying on a work retirement plan might mean you find yourself stretched financially thin in retirement. There also exists a risk that you could lose that retirement if you are fired or are forced to leave before you have worked there a certain number of years. It might be worth considering opening an individual retirement account, or IRA, to make sure you have another source of retirement income as well as plump up your nest egg in general.

Taking early steps to maximize your retirement fund is important. It can mean the difference between struggling or living comfortably in old age.