In this audio podcast, if you're thinking about working in retirement, Miguel Gonzalez shares what you need to consider before making your decision.
Welcome to Cortburg Speaks Retirement Podcast
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®
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Welcome to Cortburg Speaks Retirement
An audio podcast about investing in the stock market, financial planning, money management and retirement planning. Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.
Now here is your host, Miguel Gonzalez.
Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.
On this week’s audio podcast, I talk about working in retirement and share what you need to consider during retirement.
If you're thinking about working in retirement, you must consider a few things before making your decision. As you get older, the question of when to collect Social Security retirement benefits and how your monthly payment may be impacted by working is essential. Here's what to consider before making your decision:
The reason you want to work in retirement- Perhaps you enjoy working and want to continue part time. Or, you may be in a position of additional income in retirement. Examining your retirement savings and having a comprehensive financial plan that outlines shortfalls or if you're on track are the first steps towards knowing if you should work during your retirement. Ask yourself these questions as part of your decision-making process:
· Do you save money to cover unforeseen emergencies?
· Do you follow a monthly budget?
· Is your saving and spending in balance?
· Do you discuss significant financial decisions with others before making them?
· Do you have a financial plan that you monitor and adjust?
· Do you give yourself an annual money checkup?
· Do you work with a financial professional?
How much of your income can you replace in retirement? Aim to replace 80% of your income in retirement as a starting point for your retirement savings so that you can maintain the same lifestyle you have today. Account for all sources of retirement savings income in your calculation:
· Roth IRA
· Social Security
· Other retirement savings
Consider the impact of working on your monthly Social Security benefit
If you have not saved enough money for retirement, you may be more dependent on your Social Security retirement benefits and need to take them earlier. On the contrary, if you have substantial retirement savings or income from other sources, you may benefit by postponing your initial Social Security benefits starting date.
You can get Social Security retirement benefits and work at the same time. Keep in mind that if you file for Social Security and continue to work before your full retirement age, your earnings will exceed certain limits, and a portion of monthly benefit will be withheld temporarily.
However, if you are younger than full retirement age and make more than the yearly earnings limit, your benefits will be reduced. Starting with the month you reach full retirement age, your benefits will not be reduced no matter how much you earn.
The Social Security Administration uses the following earnings limits to reduce your benefits:
Once you have made your decision, work with a financial professional to help you determine specific retirement income goals, strategies, and actions to pursue them. In deciding if you should work during retirement, a comprehensive financial plan will consider your future expenses, liabilities, and life expectancy. Once you have the information, you can make an informed decision about working in retirement.
Make sure to visit our website, www.CortburgRetirement.com. Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances. As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.
This is Miguel Gonzalez, Certified Retirement Counselor (CRC) and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.
Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision.
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
CRC conferred by The International Foundation for Retirement Education.
Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.
Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.
Investing involves risk including possible loss of principal.
· The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
· This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
· All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
· This article was prepared by Fresh Finance.
· Source: What Happens if I work and get Social Security retirement benefits SSA.gov