How to Keep Your Money Working After You’ve Retired

September 1, 2024

AMBA’s Strategies for Older Americans

People who have worked and saved up for decades can feel that reaching retirement age means it's time to enjoy the fruits of their labor. The risk is that people can go overboard and spend it all in a few years.

Retirement planning can be challenging at any age, even if you think you’re financially secure. There are also factors like inflation, savings programs that might not have produced projected returns, and emergency expenses to consider. AMBA can provide the tips to help you enjoy a successful retirement.  

How to Keep Your Money Working for You After Retirement

• Budget your expenses

A budget becomes even more critical when you're no longer working. Most likely, your income will come from your pension, savings, and Social Security.

As you create your budget, include any new costs you plan to incur. For instance, extra travel or other pursuits. This will help you realistically determine how easily you can afford some of your ideas.

Having a clear picture of these things, you can now take tactical steps to create a realistic spending plan.

• Withdrawals at the right time can add money to your balance

If financing your retirement requires you to use income from your savings, take steps to minimize taxes and maximize what you get to keep. Everyone’s financial profile is different, so you should research how to determine the most suitable time to use certain types of income.

For instance, making withdrawals from tax-deferred accounts such as employer-sponsored plans or traditional IRAs should generally occur during the years when your tax rate is lower to help minimize the amount of income tax you owe.

• Downsizing your home can upgrade your lifestyle

Moving to a smaller home that's less costly to maintain or an area where the cost of living is lower can improve your cost of living in many ways. Factors like reducing the expense of your property taxes or costs of maintenance can go a long way. Changing residences could provide some extra money to add to your retirement nest egg.

• Rebalance your investment portfolio

The right mix of stocks, bonds, and cash for you will depend on your risk tolerance, time horizon, and financial goals. Typically, it’s advised to invest in a more conservative, lower-risk investment mix as we age to avoid subjecting savings to market volatility and a potential downturn.

Continue to monitor and reassess your plan. Revisiting your retirement plan at least annually can be a smart way to ensure that your fiscal health remains on track.”

• Consider an Annuity from AMBA

Or you might want to safeguard your money from the market’s ups and downs and enjoy guaranteed income with the Tax-Deferred Asset Protection from AMBA and your association to help protect your retirement. This annuity is an intelligent and safe way to diversify your savings and can earn much more interest than CDs or savings accounts. Your association and AMBA’s Tax-Deferred Asset Protection Plan features a tax-deferred accumulation of interest, a guaranteed competitive interest rate, multiple payout options, and a nursing home waiver.

Get more information at myAMBAbenefits.info or speak with a knowledgeable AMBA Call Center representative at 1-866-610-4558, M-F, 8am-5pm CT.

Sources:

https://www.truist.com/money-mindset/principles/investing-in-your-values/retirement-planning-tips

https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/publications/top-10-ways-to-prepare-for-retirement.pdf

 

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