Working with a Fee-Only financial planner means that you have someone looking at the big picture that can foresee changes to your financial landscape, even if you are focused on the present.
As we are growing up, there are certain milestone ages that we look forward to, although they often require little preparation on our parts. Maybe you looked forward to going from single digits (9) to double digits (10) or you couldn’t wait to be 13, 16, 18 or 21.
When we reach adulthood, however, there are also certain ages that matter a great deal, not because you get to have a party or gain new freedoms, but because these ages represent turning points in your financial outlook. With guidance, a commitment to sound financial planning, and a recognition of the importance of retirement planning, you can gift yourself financial freedom when you reach certain milestone birthdays.
- At 50, you should pay down outstanding debts and start to research long-tern care insurance.
- Fifty-five is the age when you can begin withdrawing money from a 401(k) or a similar plan without paying a penalty for early withdrawal (although you will still pay regular taxes).
- At 62, you need to weigh the pros and cons of taking early Social Security benefits. You’ll get a larger amount in each check if you wait, but starting early means you receive more checks over time.
- When you are between 65 and 67, you will be at the point where you are expected to take Social Security benefits. (Although, you still have to option of waiting until you are seventy to get a larger amount of money.)
- Age 70 1/2 (half-years still matter for adults) is when you will be required to take minimum distributions from your IRA, even if you still work. However, there are certain conditions under which an employer can allow you to want until you retire to start receiving these distributions.