The Rich Can Get Richer at Age 73

Retirement sounds exhilarating when you think about how much control you will have over your time. You can get up early and watch the early birds at your bird feeder if you are so inclined, or you can sleep late without an alarm clock waking you up, if you have been blessed to have your ability to sleep late follow you into old age. You never have to drive in rush hour traffic again if you don’t feel like it. You can wear high heels every day, or never again. The world is your oyster, and you are uniquely positioned to enjoy it, now that you are old enough not to worry about stuff that doesn’t matter. Nothing can put a damper on your good mood except the inconvenient fact that you are on a fixed income and will remain so for the rest of your life. When you were working, a major contributor to your good mood was the hope that, next year, you would get a pay raise or that your employer would give you a bonus at the holidays. Checking your 401(k) account always boosted your mood, because the balance was always higher than it was the last time you checked; if there is anything better than compound interest, it is employer-matched contributions plus compound interest. If you are healthy enough and patient enough, it is possible to make that feeling last well into your 70s. For help strategizing about how to get the most fabulousness out of your boring 401(k) account, contact a Dade City estate planning lawyer.

If You Have a 401(k) Account, Let It Coast Until You Are 73

As unfair as it is, the best way to ensure a comfortable retirement is to live a charmed life, to remain healthy enough to work until you are older than 65 and to have an employer who is willing to keep you on the payroll for that long. For example, you get the biggest Social Security checks if you can wait until you are 70 to start drawing Social Security. If you live a charmed life, this means that you can easily work until you are 70, or if you retire earlier than that, you have enough personal savings to keep you going until you start drawing Social Security at age 70.

Why personal savings? Why not your 401(k) account? This is part of the strategy. You can let your 401(k) account keep building up until you are 73, at which point the law requires you to take required minimum distributions (RMDs). When the RMDs become part of your income at age 73, it feels like the boost in income you have not gotten since you were much younger.

Contact a Florida Estate Planning Attorney About Maximizing Your Retirement Income

An estate planning attorney can help you make your fixed income feel like a windfall, as long as you have already started saving for retirement.  Contact The Law Office of Laurie R. Chane in Dade City, Florida to discuss your case.

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