Money Strategies for People 55+ - Program Recap

I just wanted to tell you about the program I gave at the Plymouth Career Center a few weeks ago.  The program, "Special Money Tips and Strategies for People age 55+" was fantastic primarily because of the wonderful participants who asked great questions and shared their personal stories. The participants completed their "Next Steps Plan" and left ready to take some really positive actions to increase their retirement fund.  Everyone..including me...learned so much.  The Plymouth Career Center asked me to rerun the program in June and of course I said I would be delighted!

I thought I'd share with you two interesting questions from the participants at the workshop:

What is the best way to convert a Traditional IRA to a ROTH IRA?
Such a conversion is a terrific idea and should be pursued, especially when you are in a lower tax bracket due to a lay off or retirement.  But, regardless of tax bracket, who can afford to pay so much in taxes in order to make the conversion?  The best solution is to slowly convert a portion of your IRA over a couple of years. Convert each year only the amount that will ensure you stay in a low tax bracket and therefore get the best benefit.  Your tax advisor can help you with this.  You can save thousands of dollars and convert your entire Traditional IRA to a ROTH IRA.  Remember, a ROTH IRA does not require Minimum Distributions at age 70 1/2 and allows you to take all earnings TAX FREE after age 59 1/2 and after the account is open for 5 years.

Should I take my Social Security benefit early at age 62?
If at all possible...and if your health is generally good...wait to take your Social Security at your Full Retirement Age (65-67) or even later if possible.  Your benefit grows at least 4-6% every year you wait...and that is a guaranteed amount. It's hard to find an investment that can do this well!  Think about getting a part-time job to match what you'd earn at age 62 so that you can hold off taking benefits but still enjoy the added income.

A Side Note

I will be facilitating another "Special Money Strategies for People age 55+" workshop June 27 from 9:30 am-noon at the Plymouth Chamber of Commerce Building in Plymouth.  We'll review your best strategy with your 401(k)/IRA accounts, Social Security and other money management actions. I'll also review the best way to invest your retirement money to try to protect yourself while still growing your money. The cost is just $45 ($35 for second person attending with you) and you will leave with your Next Step Plan to make positive changes to increase your retirement income.  Save $10 by paying on or before June 24th.  You can register right on my website.  Feel free to email me any questions you may have.  See you there!