What to Consider When You Start Taking Distributions
A quality retirement could be described as finding a balance between what to do with all of the time that’s become your own while managing your financial resources. The Department of Labor says the average American spends 20 years in retirement. That’s two decades of expenses to save and invest towards. Here are three points to consider about this transition:(1)
- Make the most of your distributions. If you can wait until certain distributions are legally required, you may be getting the most out of your retirement strategy.
- Save or spend? If your goals include travel and other expenses that can be costly, by all means, make those plans fit with your distribution strategy. However, while you are required to take a distribution, nothing requires you to spend that money. It’s yours to do with whatever you like, really.
- Debt and Taxes. Unpleasant as it may be, you may still have debts to pay and taxes to file in retirement. Your trusted financial professionals can help put together a strategy that considers debts and taxes with your distribution approach.
Whatever path you choose, keep your financial professional in the loop. They may have other ideas and strategies for you to consider.
Taking an Active Role as a Grandparent
One of the great joys of retirement is that, for many, this period of life coincides with becoming a grandparent. The intersection of more personal time and the opportunity for quality family time might lead to you to take a very active role as a grandparent.
There’s nothing wrong with planning to spend time–or even a little money–on the grandkids. However, you may also want to take some time to think about how you might strike a balance between spending all of your time with the grandkids and pursuing other interests you might have.(2)
As with any undertaking, there’s always a risk of overextending yourself. The last thing anyone wants is for something fun to become a “task” or a “chore.” While you are enjoying that quality time, give yourself equal time to rest, regenerate, and pursue your own interests. There’s also the matter of taking care of yourself so that you have the energy to fully enjoy your family time.
Building your connection with your grandchildren should be joyful. It’s a unique opportunity to build cherished memories. With a little self-care, you can position yourself as an active and present grandparent.
On the Bright Side
Jason Boudreaux, a resident of Breaux Bridge, Louisiana, has deposited his paycheck in the bank. Unfortunately for Jason, the bank did not clear his check right away, leading to his card being declined for his weekly grocery run. The next man in line, truck driver Kevin Jones, stepped in to pay the bill. In the exuberance, Boudreaux failed to get Jones’ address to repay him. What he did have was a selfie and a story. After a social media post helped him track Jones down, he not only repaid him, but the two gentlemen have become good friends — “brothers,” as they say — and enjoy Family Days together.(3)
Lighthouse Financial, LLC may be reached at www.lighthousefinancialllc.com, 303-444-1818 or wisdom@lighthousefinancialllc.com.
Investment and Advisory services are provided by Petra Financial Advisors, Inc., headquartered at 2 N. Nevada Ave. Suite 1300, Colorado Springs, CO 80903.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2023 FMG Suite.
1. Department of Labor, March 8, 2023
2. Seniors Guide, March 8, 2023
3. Today.com, March 7, 2023