Boost Your Post-Retirement Finances/ February 5th, 2021
Just because you've already retired does not mean you're done putting work into improving your finances. Here's what you can do now to boost your financial game:
- Don't forget minimum distributions. After age 70 ˝, you must take annual withdrawals from 401(k)s and IRAs to pay the income tax bill. If you miss a distribution, there will be a 50% tax on the amount that you should have withdrawn.
- Move money around to save on taxes. Depending on which account your money is in, your money will receive a different tax treatment. You can do a Roth conversion to move money out of your 401(k) account and into a Roth IRA to reduce your taxes.
- Downsize your living space. Moving into a smaller house or apartment can help you save more money throughout your retirement.
- Look into senior savings. You can save on your cost of living by looking for any discounts you can get for your age on car insurance, travel, and various recreational activities.
- Add to your income. Grow your nest egg by taking on a part-time job in retirement.
Source: U.S. News