7 Strategies for Planning for Income in Retirement

You worked hard your entire life. There comes a point in time where you want to sit back, relax and enjoy your retirement. If you are planning to retire to Laguna Beach this May 2015, you need to make sure you have the proper strategies in place to retire comfortably.

Pay attention to the amount of money you are spending. Just because you are retired doesn’t mean your expenses are going to go down. It all depends on the type of lifestyle you are planning to have as to how much money you need saved.

Determine what your tax bracket is going to be. If you are able to stay within a lower tax bracket, you won’t have to worry about spending as much money on your retirement. Once your income hits a certain amount, it will up your tax amount.

Diversify your assets*. Split your assets into a variety of different accounts to prevent being hit with a giant tax bill. This gives you the added flexibility you need when trying to withdraw funds during your retirement.

Know all of the rules are in relation to Social Security**. In reality, you are better off waiting to claim your Social Security until you have reached retirement age. Claiming it early will end up shorting yourself on the benefits you are entitled to receive.

Exercise caution when looking at a Roth IRA.

For those who have had a Roth IRA for at least five years and have reached 59.5 years of age, you are able to withdraw your money without having to worry about paying taxes on it.
Anyone not having this type of IRA isn’t able to open a new one when you earn a large sum of money. There are other options available though.

Determine where you want to live. While some want to retire to a warmer climate, others are simply looking for somewhere affordable close to family. You also need to consider how your assets are going to be taxed.

Develop a sound plan.