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Within your retirement planning journey, age 62 is the beginning of a crucial transition. If you haven’t already, it’s here you begin to shift your mindset from asset-building to accumulation.READ THE ARTICLE
Within your retirement planning journey, age 62 is the beginning of a crucial transition. If you haven’t already, it’s here you begin to shift your mindset from asset-building to accumulation. This article highlights several potential strategies to help create the consistent, reliable income you deserve, some of which include:
📌Deferring your Social Security start date – While you can begin Social Security benefits as early as age 62, by delaying, you receive an eight percent cost-of-living increase every year between your full retirement age and age 70.
📌Reducing Medicare Part B and D premiums – These are determined by your modified adjusted gross income (MAGI) from your federal tax return two years prior to the current year (age 63 if you utilize eligibility at age 65). As a result, it’s wise to incorporate Medicare income brackets into your tax projections to reduce your projected MAGI.
📌Roth IRA conversion window of opportunity – Beginning at age 62, Roth IRA conversions reduce annual required minimum distributions (RMDs) for the rest of your life. In return, this creates a domino effect in helping reduce annual taxable income, Part B and D Medicare premiums, taxable Social Security benefits and net investment income tax.
📌Sustainable and potentially tax-favored lifetime income – Since the start date for the majority of immediate and deferred fixed income annuities is age 72, the ten years prior should be dedicated to deferred growth, tax maximization and increasing your lifetime income.
My two cents: Your retirement strategy has unlimited possibilities. Seek advice from someone that can look at it from every angle, and leverage all the tools available to you.