Actually Retiring

Actually Retiring

One of the keys to retirement is to continue to make smart money moves throughout your post-work life. Saving for your golden years is important, but so is what you do with that money once you retire. Here are some risky money moves that could derail your retirement.

Going Big

It might be tempting to make large withdrawals from your investment accounts early in retirement. You’re feeling healthy and you’re excited about what lies ahead. However, if you take a large withdrawal early and the market dips, it could spell trouble down the line. You’d need even more time for your accounts to recover. Instead of taking a big chunk from your accounts, it’s wise to start with a small amount like four percent and gradually increase it as time goes by.

Underestimating Medical Costs

As USA Today notes, almost 70 percent of adults require some type of long-term care during retirement. You need to be mindful of medical costs. One of the best ways to be prepared for those costs is to use a health savings account (HSA). A HSA offers tax-free contributions and tax-free withdrawals for medical expenses.

Failing to Plan for Taxes

If you’ve been saving in a 401(k) or a traditional IRA, you must remember that a big chunk of that money is going to taxes. Make sure you know the details about how much of your savings in those vehicles is going to get taxed. You can also use an account like a Roth IRA, which is tax-free in retirement.

Articles
Better Savings
Better Savings

A 529 plan is a great way for a family to save for educational purposes. Yet a recent study found that just 30 percent of America...

Read More

Three to Know
Three to Know

There’s a good chance you’re going to rely on Social Security payments during retirement. That means the more you know about thos...

Read More

Emergency Fund Basics
Emergency Fund Basics

If the pandemic has taught us anything, it’s to expect the unexpected. How do you gear up to do that? By having a well-stocked em...

Read More

Save Up
Save Up

Kids are expensive. You have to provide everything for them, and that, as you might imagine, adds up. That makes it important to ...

Read More

Raving About Roths
Raving About Roths

Saving as much as possible for retirement is important. Where you stash those funds is just as vital. Here’s why you should consi...

Read More

Five tips for living below your means (and what to do with the extra cash)
Five tips for living below your means (and what to do with the extra cash)

In my book Money Rules, The Simple Path To Lifelong Security, I make a case for consistently spending less than you make. Its Mon...

Read More

More Medical Costs
More Medical Costs

When preparing for retirement, it’s important to understand just how immense medical costs can be. If you don’t have a good grasp...

Read More

Financial planning strategies for teachers
Financial planning strategies for teachers

Even before the global pandemic placed a severe strain on to best educate our nations youth, teachers faced a unique set of finan...

Read More

Is It Too Late To Invest In Stocks?
Is It Too Late To Invest In Stocks?

Lets face it. Most of us will never inherit millions from a rich relative, win the power-ball or strike crude oil in the backyard...

Read More

Website Terms of Service

Please read these "Website Terms of Service" carefully before using SavvyMoney Checkup ("site", "website"). Accessing this site, or making this site available to any third party, indicates that you have read and accept these terms.

  1. Materials. Materials in this site are copyrighted and all rights are reserved. Text, graphics, databases, HTML code, and other intellectual property are protected by US and International Copyright Laws, and may not be copied, reprinted, published, reengineered, translated, hosted, or otherwise distributed by any means without explicit permission.
  2. Links to Third-Party Sites. Linked, third-party sites from website are not under the control of the Licensor. The Licensor is not responsible for the contents of any linked site or any link contained in a linked site, or any changes or updates to such sites.
  3. Confidentiality of Codes, Passwords and Information. Licensee agrees to treat as strictly private and confidential any username, password, user ID, and all information to which you have access through password-protected areas of website.
  4. Maintenance. Licensor shall provide Licensee any new, corrected or enhanced version of the site as it becomes available. Such enhancement shall include all modifications to the site which increase the speed, efficiency or ease of use of the site, or add additional capabilities or functionality to the site, but shall not include any substantially new or rewritten version of the site.
  5. Limitation of Liability. Licensor shall not be responsible for, and shall not pay, any amount of incidental, consequential, or other indirect damages, whether based on lost revenue or otherwise, regardless of whether Licensor was advised of the possibility of such losses in advance. In no event shall Licensor's liability exceed the amount of license fees paid by Licensee, regardless of whether Licensee's claim is based on contract, tort, strict liability, product liability or otherwise.