{"id":12516,"date":"2022-01-24T10:05:55","date_gmt":"2022-01-24T16:05:55","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=12516"},"modified":"2022-01-24T10:05:55","modified_gmt":"2022-01-24T16:05:55","slug":"every-iowa-retirement-plan-should-include-these-four-steps","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/every-iowa-retirement-plan-should-include-these-four-steps","title":{"rendered":"Every Iowa Retirement Plan Should Include These Four Steps"},"content":{"rendered":"

Retirement planning is now no longer just about your financial future. To have a more comfortable, secure\u2014and fun\u2014retirement, you need to build the financial cushion that will fund it all; for you, your spouse, and your family.\u00a0<\/strong><\/p>\n

When it comes to retirement planning<\/a>, you want to help ensure your financial safety for you and your loved ones. Nowadays, there’s so many changes happening it’s hard to keep up; Inflation, increase in taxes, and a volatile stock market can make you feel uneasy about your golden years.<\/p>\n

Retirement planning starts with thinking about your retirement goals and how long you have to meet them. Then you need to look at the types of retirement accounts that can help you raise the money to fund your future. As you save that money, strategizing your investments could help it grow.<\/p>\n

To make sure you’re ready for what the future holds, here are 4 steps that every Iowan should include in their retirement plan.<\/p>\n

1. Try to <\/b><\/b>Maximize your Social Security Income<\/b><\/h4>\n

To try and maximize <\/span>Social Security benefits <\/span><\/a>for you and your spouse, you need to know which of the many separate claiming strategies for married couples is right for you. Sometimes, it makes sense to start taking Social Security while letting your nest egg grow. For others, it makes sense to draw down on investments to let your Social Security benefits continue to grow until full retirement age – or to when the benefit amount peaks before claiming the benefits.<\/span><\/p>\n

The SSA calculates your benefit amount based on your earnings, so the more you earn, the higher your benefit amount will be. Some pre-retirees look for ways to increase their income, such as taking on part-time work or generating business income. Others, however, unaware of the impact on benefits, may scale back on their work or semi-retire, which can lower their Social Security income.\u00a0<\/span><\/p>\n

It\u2019s important to note if you and your spouse were born before Jan. 2, 1954, and have both reached full retirement age, you can claim spousal benefits and let your own benefits keep growing. Then, when you reach age 70, you can switch to your higher benefit. One caution: You can’t claim your own benefit if you want to make use of this “restricted application”.<\/span><\/b><\/p>\n

2. Create a Retirement Income Plan<\/b><\/h4>\n

Investing should be easy \u2013 just buy low and sell high \u2013 but most of us have trouble following that simple advice. There are principles and strategies that may help enable you to put together an investment portfolio that reflects your risk tolerance, time horizon, and goals. Understanding these principles and strategies can help you avoid some of the pitfalls that snare some investors.<\/p>\n

When you are working, investing can be fairly straightforward. All your money has to do is grow. When you retire, your money has to provide income, pay taxes, and grow in order to support your lifestyle. Investing becomes much more challenging once you start taking income.<\/span><\/p>\n

Ask yourself whether your projected income will cover your expenses and the kind of lifestyle you desire<\/span>. <\/span>Start by creating a list of fixed sources for retirement income. Add columns for each source of fixed income such as:<\/span><\/p>\n