During your working years, everyone told you retirement was the easy life. As you near retirement, however, perhaps it’s seeming like a bit more work than you had imagined. After all, correctly positioning your various retirement accounts, honing in on your risk tolerance, determining your income sources, creating a budget, and deciding the age to start accepting your Social Security benefit are all important issues that should be at the forefront of your retirement planning checklist.

But have you given much thought to the role taxes will play in your retirement lifestyle?

Sadly, most retirees have not, and risk detonating the potential ticking tax time bomb in their portfolio that could have been avoided with a little bit of education and a touch of guidance.

Although taxes are imminent to some extent, once you retire you have the distinct advantage of being able to choose what to pay yourself for income each year by withdrawing from your various accounts or accepting a Social Security benefit. Estimate your taxes for the year and see how much additional room you have in your current tax bracket before you reach the upper threshold. “Maximizing your tax bracket” refers to taking additional withdrawals to “fill up” the entire bracket without going into the next one.

Tax planning for retirement seems simple at first glance, however, retirees face a completely different set of challenges than do younger taxpayers. Oftentimes, clients come to a financial services professional (FSP) with a tax situation they weren’t ever expecting to face, and many of them have forgotten to account for taxes altogether when making important calculations. Each year you should carefully plan out you and your spouse’s income to ensure you know which tax bracket you’re going to land in. By developing and utilizing tax-efficient withdrawal sequences for your income, you can delay having to tap into your tax-deferred accounts until later in life. Many people seem to think that taxable income decreases or goes away in retirement, but that is not the case.

In order to pay Uncle Sam as little as possible over the course of your retirement, you must understand how your different modes of income will be taxed. Planning carefully – on both a long-range and an annual basis – in regards to your tax brackets, will help you increase your post-tax income for retirement. Remember that in retirement, you control (to some degree) how much you pay yourself in income each tax year from actualizing the funds from your retirement accounts.

Long-range tax bracket planning entails putting together a snapshot of the amounts you’ll withdraw from your retirement accounts and other financial vehicles through the years, and carefully coordinating it with when you start accepting your Social Security benefit. In doing so, many retirees are able to rearrange their income sources in such a way that delivers them more after-tax income. While long-range planning assists in designing an overall tax and income strategy over the course of retirement, annual planning, or being able to “control your tax bracket” each year provides an opportunity to revisit ways to reduce tax burden by taking full advantage of standard or itemized deductions and personal exemptions.

As our lives evolve and change, so does our tax situation. Just as it is important to revisit your risk tolerance as your financial landscape continues to undergo major life events and changes, it’s also necessary to do so from a tax perspective. As many retirees leave the working world, they drop into a lower tax bracket initially from the time they retire and stop receiving normal paychecks on through their 60s. At age 70½, however, you’ll be required to take required minimum distributions (RMDs) from your 401(k) or your traditional IRA.

These distributions, along with any other income you’ve still got coming in, has the potential to push you into a higher tax bracket. Some retirees have found success in taking distributions to steadily and carefully draw from their IRA while still in their 60s, and remain in the same tax bracket – many times this helps them avoid getting bumped into a higher bracket.

As most of us know, you’re not able to dismiss taxes altogether. If you are proactively taking measures to be as tax-efficient as possible, however, you will have a leg up on many retirees. It’s always recommended that you work with a tax or financial services professional to help you prepare. With proper tax bracket management, allocation and diversification of your assets, you can be better prepared and help keep as much of your retirement funds as possible.

 If you have any question, please contact Nevada Senior Advisors at 775-674-2223. 

Thinking About Your Lifestyle in Retirement

If you are nearing retirement age, you may be exploring ways to put your retirement savings to work in creating a reliable income for yourself well beyond your working years. You may have already devoted some time to speaking with someone to help you accomplish this, because let’s face it, retirement is complicated.  Most of the topics surrounding retirement involve money, and rightfully so – it’s the main thing on most American retiree’s minds. Aside from money, however, there are other lifestyle factors that will be key drivers of your retirement success.

Balancing both the management of your finances and your lifestyle in retirement will play large roles in how you’re able to enjoy your new chapter of life.

By exploring the topics listed below, you may gain some insight on ways to make your retirement more comfortable and enjoyable.

1. Downsizing may make a lot of sense

The choice to downsize your home once you enter retirement is a big decision, but, depending on your homeownership costs, it may potentially be one of the best ways to create retirement income by extracting equity from your home to serve you elsewhere in your retirement budget. Many retirees require a larger house and more property to raise their family – commonly in houses with multiple floors and two or more bedrooms and bathrooms. Once the children become adults and move out, retirees often find themselves with too     much space.

In addition, many retirees, as they prepare to grow older, may have a desire to have all of their rooms and utilities located on one floor, eliminating the need to travel up and down stairs to complete daily tasks like laundry, cleaning or cooking. A smaller yard may also mean less upkeep and maintenance. As mentioned, downsizing to something more modest may create immediate equity to help accomplish other retirement goals, and likely will also cost you less in taxes, insurance and utilities. Beware, however, the costs associated with downsizing. Do your homework to ensure real estate and moving costs don’t eat away your newly-recognized equity.

2. Make your physical health a priority and a hobby

The cost of assisted living facilities jumped 14 percent in 2017, to more than $54,0001 per year, so it’s easy to understand why so many Americans have large amounts of their retirement savings wiped away due to the need for some sort of long-term care. A multitude of factors

play into your health in retirement, but staying active and working on building and maintain strength can make a world of difference in preserving your mobility, balance, posture and overall well-being. While we as humans will undoubtedly age, and if we live long enough, may eventually require some form of living assistance, you can help stave off the aches and pains of old age with a healthy diet and regular workout routine. In addition, many retirees are making a hobby out of their fitness activities, and it’s easy to see why – yoga, cycling, water aerobics, dance classes and golf are all great ways to stay fit and meet new friends. In addition, studies show exercise can reduce your chances of a fall, and can boost memory and prevent dementia.2

3. Consider a part-time job to stay active

Many retirees find it difficult going from forty or more hours of work per week down to zero when they retire. With so much more free time, it’s easy to see why. In addition to extra time, many retirees underestimate the socialization aspect of working life. Many Americans are finding that going from full-time employment to an enjoyable part-time job strikes the perfect balance – it allows them to retain some semblance of work-related accomplishment, along with the socialization factor mentioned previously. In addition, the added income from working part time allows you to stretch your retirement budget further or leverage the extra cash for investments. Working  part time may also allow you to delay touching your  tax-deferred dollars, saving them until you absolutely need to withdraw them and they become subject to taxes.

If you have questions about preparing for retirement, call Nevada Senior Advisors at 775-674-2223.

Sources: 1

The Costs of Financial Procrastination

Many people are guilty of some form of procrastination, whether that means they put off filing for taxes as long as possible or just have an ever-increasing stack of papers on their desk to sift through. This can be especially true with financial responsibilities, because doing financial paperwork isn’t exactly “fun” for most people.

Mark Twain once said “Never put off until tomorrow what you can do the day after tomorrow.”

According to a 2016 report from the Insured Retirement Institute, only 55 percent of baby boomers have set aside savings for retirement. That means that the other 45 percent don’t have retirement savings to fall back on.

Whether it’s that they have a significant amount of debt, their finances are tied up in ongoing expenses, or that they hold onto the idea that they will have time to save for retirement down the road, people are always going to have excuses to delay saving for retirement. Putting off saving for retirement by even a few years, however, can mean the difference between the retirement you desire and outliving your money.

How this kind of procrastination might affect your retirement:

Based on calculations, a 25-year-old that saves $100 every month until he retires at age 65, with an annual return of 6.5 percent, would accumulate over $225,000. If he waited until he was 40 years old to start contributing to his retirement account, the balance would be a significantly smaller at $75,000. According to a report by the U.S. Government Accountability Office, the median amount of savings for many Americans is about $104,000 for households with members between 55 and 64 years old. That figure tells us that many Americans aren’t saving nearly enough for retirement. The amount that you need for retirement varies by each individual as there are several factors to be taken into consideration.

What should someone do if they find themselves behind on the retirement savings spectrum?

One of the most beneficial things you can do for your retirement savings is to sit down and come up with your list of realistic expenses that you think you will face in retirement. This can help you determine how much you will need to save, and help you gauge how far along you are in your retirement savings process.

If you aren’t sure where to begin when it comes to creating a retirement budget, you can start by looking up online what some of the average expenses are in retirement.

This will include factors like:

  • Housing
  • Transportation
  • Health care
  • Food

For the most part, a lot of your day-to-day expenses will change dramatically when you retire.

You won’t need to commute to work every single day, for example. You also may have your house paid off by then, so you wouldn’t have to worry about mortgage payments. There are some unpredictable costs in retirement such as health care. Health care costs tend to rise throughout your retirement, and the older you get, the more medical help you will likely need.  It’s important to factor in these unpredictable costs into your plans, so that you can be as prepared as possible.

Your unique situation could look much different, depending on a list of things:

  • Your lifestyle in retirement. Are you someone who hopes to travel a lot during your retirement? Or enjoy a round of golf every day?
  • Your health and life expectancy.
  • Your housing.
  • And many other factors

Source :


What You Can Do With a Will

A will is often the cornerstone of an estate plan. Here are five things you may be able to accomplish with a will.

Distribute Property as You Wish

Wills may enable you to leave your property at your death to a surviving spouse, a child, other relatives, friends, a trust, a charity, or anyone you choose. There may be some limits, however, on how you can distribute property using a will. For instance, your spouse may have certain rights with respect to your property, regardless of the provisions of your will.

Transfers through your will usually take the form of specific bequests (e.g., an heirloom, jewelry, furniture, or cash), general bequests (e.g., a percentage of your property), or a residuary bequest of what’s left after your other transfers. It is generally a good practice to name backup beneficiaries just in case they are needed.
Note that certain property may not be transferred by a will. For example, property you hold in joint tenancy or tenancy by the entirety may pass to the surviving joint owner(s) at your death. Also, certain property in which you have already named a beneficiary may pass to the beneficiary (e.g., life insurance, pension plans, IRAs).

Nominate a Guardian for Your Minor Children

In many states, a will may be your only means of stating who you want to act as legal guardian for your minor children if you die. You may be able to name a personal guardian, who takes personal custody of the children, and a property guardian, who manages the children’s assets. This can be the same person or different people. The probate court may have final approval, but courts will usually approve your choice of guardian unless there are compelling reasons not to.

Nominate an Executor

A will may allow you to designate a person as your executor to act as your legal representative after your death. An executor carries out many estate settlement tasks, including locating your will, collecting your assets, paying legitimate creditor claims, paying any taxes owed by your estate, and distributing any remaining assets to your beneficiaries. As with naming a guardian, the probate court may have final approval but will likely approve whomever you nominate.

Specify How to Pay Estate Taxes and Other Expenses

The way in which estate taxes and other expenses are divided among your heirs is generally determined by state law unless you direct otherwise in your will. To ensure that the specific bequests you make to your beneficiaries are not reduced by taxes and other expenses, you may be able to provide in your will that these costs be paid from your residuary estate. Or, you may be able to specify which assets should be used or sold to pay these costs.

Create a Testamentary Trust or Fund a Living Trust

You may be able to create a trust in your will, known as a testamentary trust, that comes into being when your will is probated. Your will typically sets out the terms of the trust, such as who the trustee is, who the beneficiaries are, how the trust is funded, how the distributions should be made, and when the trust terminates. This can be especially important if you have a spouse or minor children who are unable to manage assets or property themselves.

A living trust is a trust that you create during your lifetime. If you have a living trust, your will may be able to transfer any assets that were not transferred to the trust while you were alive. This is known as a pourover will because the will “pours over” your estate to your living trust.


Generally, a will is a written document that must be executed with appropriate formalities. These may include, for example, signing the document in front of at least two witnesses. Though it may not be a legal requirement, a will should generally be drafted by an attorney.

There may be costs or expenses involved with the creation of a will or trust, the probate of a will, and the operation of a trust.

For more information on Wills and Living Trusts, please give us a call at 775-674-2223 and we can put you in touch with our Estate Planning Attorney.

Disclaimer: The above information is not legal advice and you should consult an attorney for legal advice.



The Health-Wealth Connection

Money is one of the greatest causes of stress, prolonged stress can lead to serious health issues, often resulting in yet more financial struggles. Consider the following statistics:

  1. More than 20% of Americans say they have either considered skipping or skipped going to the doctor due to financial worries. (American Psychological Association, 2015)
  2. More than half of retirees who retired earlier than planned did so because of their own health issues or to care for a family member. (Employee Benefit Research Institute, 2017)
  3. Chronic diseases such as heart disease, type 2 diabetes, obesity, and arthritis are among the most common, costly, and preventable of all health problems. (Centers for Disease Control and Prevention, 2017)
  4. Chronic conditions make you more likely to need long-term care, which can cost anywhere from $21 per hour for a home health aide to more than $6,000 a month for a nursing home. (Department of Health and Human Services, 2017)
  5.  A 65-year-old married couple on Medicare with median prescription drug costs would need about $265,000 to have a 90% chance of covering their medical expenses in retirement. (Employee Benefit Research Institute, 2017)                              

The recommendations for living a healthy lifestyle are fairly straightforward: eat right, exercise regularly, don’t smoke or engage in other risky behaviors, limit soda and alcohol consumption, get enough sleep (at least seven hours for most adults), and manage stress. Your doctor will benchmark important information such as your current weight and risk factors for developing chronic disease. Other specific tips from the Department of Health and Human Services include:

Nutrition: Current nutritional guidelines call for eating a variety of vegetables and fruits; grains; low-fat dairy; a wide variety of protein sources including lean meats, fish, eggs, legumes, and nuts; and healthy oils. Details can be found at

Exercise: Any physical activity is better than none. The ideal target is at least 150 minutes of moderate-intensity or 75 minutes of high-intensity workouts per week. For more information, visit

Here are some basic recommendations for living a financially healthy life:

Emergency savings: The amount you need can vary depending on whether you’re single or married, self-employed or work for an organization (and if that organization is a risky startup or an established entity).

Retirement savings: Personal finance commentator Jean Chatzky advocates striving to save 15% of your income toward retirement, including any employer contributions. If this seems like a lofty goal, bear in mind that as with exercise, any activity is better than none — setting aside even a few dollars per pay period can lead to good financial habits.

Health savings accounts: These tax-advantaged accounts are designed to help those with high-deductible health plans set aside money specifically for medical expenses. If you have access to an HSA at work, consider the potential benefits of using it to help save for health expenses.



Protect Yourself Against Identity Theft

Whether they’re snatching your purse, diving into your dumpster, stealing your mail, or hacking into your computer, they’re out to get you. Who are they? Identity thieves.

Identity thieves can empty your bank account, max out your credit cards, open new accounts in your name, and purchase furniture, cars, and even homes on the basis of your credit history. If they give your personal information to the police during an arrest and then don’t show up for a court date, you may be subsequently arrested and jailed.

And what will you get for their efforts? You’ll get the headache and expense of cleaning up the mess they leave behind.

You may never be able to completely prevent your identity from being stolen, but here are some steps you can take to help protect yourself from becoming a victim.

Check yourself out

It’s important to review your credit report periodically. Check to make sure that all the information contained in it is correct, and be on the lookout for any fraudulent activity.

You may get your credit report for free once a year. To do so, visit

If you need to correct any information or dispute any entries, contact the three national credit reporting agencies: Equifax, Experian, and TransUnion.

Secure your number

Your most important personal identifier is your Social Security number (SSN). Guard it carefully. Never carry your Social Security card with you unless you’ll need it. The same goes for other forms of identification (for example, health insurance cards) that display your SSN. If your state uses your SSN as your driver’s license number, request an alternate number. Don’t have your SSN preprinted on your checks, and don’t let merchants write it on your checks.

Don’t give it out over the phone unless you initiate the call to an organization you trust. Ask the three major credit reporting agencies to truncate it on your credit reports. Try to avoid listing it on employment applications; offer instead to provide it during a job interview.

Don’t leave home with it

Most of us carry our checkbooks and all of our credit cards, debit cards, and telephone cards with us all the time. That’s a bad idea; if your wallet or purse is stolen, the thief will have a treasure chest of new toys to play with.

Carry only the cards and/or checks you’ll need for any one trip. And keep a written record of all your account numbers, credit card expiration dates, and the telephone numbers of the customer service and fraud departments in a secure place–at home.

Keep your receipts

When you make a purchase with a credit or debit card, you’re given a receipt. Don’t throw it away or leave it behind; it may contain your credit or debit card number. And don’t leave it in the shopping bag inside your car while you continue shopping; if your car is broken into and the item you bought is stolen, your identity may be as well.

Save your receipts until you can check them against your monthly credit card and bank statements, and watch your statements for purchases you didn’t make.

When you toss it, shred it

Before you throw out any financial records such as credit or debit card receipts and statements, cancelled checks, or even offers for credit you receive in the mail, shred the documents, preferably with a cross-cut shredder. If you don’t, you may find the panhandler going through your dumpster was looking for more than discarded leftovers.

Keep a low profile

The more your personal information is available to others, the more likely you are to be victimized by identity theft. While you don’t need to become a hermit in a cave, there are steps you can take to help minimize your exposure:

To stop telephone calls from national telemarketers, list your telephone number with the Federal Trade Commission’s National Do Not Call Registry by registering online at

  • To remove your name from most national mailing and e-mailing lists, as well as most telemarketing lists register online with the Direct Marketing Association at
  • To remove your name from marketing lists prepared by the three national consumer reporting agencies, register online at
  • When given the opportunity to do so by your bank, investment firm, insurance company, and credit card companies, opt out of allowing them to share your financial information with other organizations
  • You may even want to consider having your name and address removed from the telephone book and reverse directories

Take a byte out of crime

Whatever else you may want your computer to do, you don’t want it to inadvertently reveal your personal information to others. Take steps to help assure that this won’t happen.

Install a firewall to prevent hackers from obtaining information from your hard drive or hijacking your computer to use it for committing other crimes. This is especially important if you use a high-speed connection that leaves you continuously connected to the Internet. Moreover, install virus protection software and update it on a regular basis.
Try to avoid storing personal and financial information on a laptop; if it’s stolen, the thief may obtain more than your computer. If you must store such information on your laptop, make things as difficult as possible for a thief by protecting these files with a strong password–one that’s six to eight characters long, and that contains letters (upper and lower case), numbers, and symbols.
“If a stranger calls, don’t answer.” Opening e-mails from people you don’t know, especially if you download attached files or click on hyperlinks within the message, can expose you to viruses, infect your computer with “spyware” that captures information by recording your keystrokes, or lead you to “spoofs” (websites that replicate legitimate business sites) designed to trick you into revealing personal information that can be used to steal your identity.
If you wish to visit a business’s legitimate website, use your stored bookmark or type the URL address directly into the browser. If you provide personal or financial information about yourself over the Internet, do so only at secure websites; to determine if a site is secure, look for a URL that begins with “https” (instead of “http”) or a lock icon on the browser’s status bar.

And when it comes time to upgrade to a new computer, remove all your personal information from the old one before you dispose of it. Using the “delete” function isn’t sufficient to do the job; overwrite the hard drive by using a “wipe” utility program. The minimal cost of investing in this software may save you from being wiped out later by an identity thief.

Retirement Planning Course Corrections to Consider

It’s no secret that millions of Americans are approaching their retirement years with meager savings and high anxiety about their financial security. And a recent study from Merrill Lynch and Age Wave reveals steps that Americans are willing to take to get their retirement back on track.

The overwhelming majority (88 percent) of people surveyed said their primary objective is peace of mind, while just 12 percent say they want to accumulate as much wealth as possible. But peace of mind means different things to different people:

  • 57 percent report they want to live comfortably within their means.
  • 39 percent say they want to have the financial resources to live the life they choose.
  • 34 percent want to feel they could handle a major unexpected expense.
  • 25 percent want to feel confident they won’t outlive their money.
  • 17 percent want to provide for their family if something happens to them.

Only 8 percent of survey respondents feel personal finances can be discussed openly, while the remainder consider the topic a private matter or one that can be discussed with a spouse or partner or only very close family and friends. It would certainly help if older workers and retirees would share their ideas and insights with their family and friends.

What changes are people willing to make to enhance their financial security in retirement? Here are steps the survey found Americans are willing to take:

  • 90 percent would be willing to cut back on their expenses. Perhaps they can focus on spending just enough to meet their basic living needs and what truly makes them happy.
  • 79 percent would seek financial advice. In this case, they’ll want to make sure their advisers are qualified and act in their best interests.
  • 77 percent would increase the use of tax-protected retirement accounts.
  • 75 percent would seek expert advice on how to pay lower taxes. Note that this may not be a good use of time for Americans with meager savings, since they could already be in a very low tax bracket when they retire.
  • 66 percent would sell real estate or other personal belongings. Finding the best way to deploy home equity is a good use of time for older workers and retirees who own a home but have modest retirement savings.
  • 64 percent would postpone taking Social Security.
  • 43 percent would withdraw the cash value from a life insurance policy. Such people would want to explore their options: Many policies allow the holder to convert the policy’s cash value into a lifetime annuity.

In addition to taking these steps, older workers would be wise to develop a strategy for generating lifetime retirement income, explore their options for continuing to work and make sure they have adequate medical insurance that supplements Medicare.

As you can see, your financial security in retirement has many moving parts. It is well worth spending hours and days planning for peace of mind in your retirement years, so you can go enjoy the rest of your life.

When and where will you receive your retirement income?

Understanding when and where you will receive your income is the foundation of a successful retirement.

Do you have questions about the following topics?

  • The best allocation options for your retirement assets
  • The potential effect of not transitioning from accumulation to
  •  distribution in retirement
  • How much Social Security income will you receive?
  • What age should you start receiving your Social Security benefits?
  • Income planning for spouses
  • The impact of earning additional income in retirement
  • Taxation of your Social Security benefit
  • Strategies to reach your desired income goals in retirement


If you do, Nevada Senior Advisors can help answer any questions you may have. Just for calling us at

775-674-2223, we will provide you with a complimentary consultation. Give us a call today!

How To Get a Bigger Social Security Retirement Benefit

Many people decide to begin receiving early Social Security retirement benefits. In fact, according to the Social Security Administration, about 72% of retired workers receive benefits prior to their full retirement age. But waiting longer could significantly increase your monthly retirement income, so weigh your options carefully before making a decision.

Timing counts

Your monthly Social Security retirement benefit is based on your lifetime earnings. Your base benefit–the amount you’ll receive at full retirement age–is calculated using a formula that takes into account your 35 highest earnings years.

If you file for retirement benefits before reaching full retirement age (66 to 67, depending on your birth year), your benefit will be permanently reduced. For example, at age 62, each benefit check will be 25% to 30% less than it would have been had you waited and claimed your benefit at full retirement age.

Alternatively, if you postpone filing for benefits past your full retirement age, you’ll earn delayed retirement credits for each month you wait, up until age 70. Delayed retirement credits will increase the amount you receive by about 8% per year if you were born in 1943 or later.


Resolving Projected Income Shortfalls: Bridging the Gap

What is a projected income shortfall?

When you determine your retirement income needs, you make your projections based on the type of lifestyle you plan to have and the desired timing of your retirement. However, you may find that reality is not in sync with your projections and it looks like your retirement income will be insufficient for the rate you plan to spend it. This is called a projected income shortfall. If you find yourself in such a situation, finding the best solution will depend on several factors, including the following:

  • The severity of your projected shortfall
  • The length of time remaining before retirement
  • How long you need your retirement income to last

Several methods of coping with projected income shortfalls are described in the following sections.

Delay retirement

One way of dealing with a projected income shortfall is to stay in the workforce longer than you had planned. This will allow you to continue supporting yourself with a salary rather than dipping into your retirement savings.

What it means

Delaying your retirement could mean that you continue to work longer than you had originally planned. Or it might mean finding a new full- or part-time job and living off the income from this job. By doing so, you can delay taking Social Security benefits or distributions from retirement accounts. The longer you delay tapping into these sources, the longer the money will last when you do begin taking it.

Save more money

You may be able to deal with projected retirement income shortfalls by adjusting your spending habits, thus allowing you to save more money for retirement. Depending on how many years you have before retirement, you may be able to get by with only minor changes to your spending habits. However, if retirement is fast approaching, drastic changes may be needed.

Make major changes to your spending patterns

If you expect to fall far short of your retirement income needs or if retirement is only a few years away, you may need to change your spending patterns drastically to save enough to cover the shortfall. You should create a written budget so you can easily see where your money goes and where you can reduce your spending. The following are some suggested changes you may choose to implement:

  • Consolidate your loans to reduce your interest rate and/or monthly payment. Consider using home equity financing for this purpose.
  • Reduce your housing expenses by moving to a less expensive home or apartment.
  • Sell your second car, especially if it is only used occasionally.

Make minor changes to your spending patterns

Minor changes can also make a difference. You’d be surprised how quickly your savings add up when you implement several small changes to your spending patterns. The following are several areas you might consider when adjusting your spending patterns:

  • Consider buying a well-maintained used car instead of a new car.
  • Get books and movies from your local library instead of buying or renting them.
  • Plan your expenditures and avoid impulse buying.

Continue saving during your retirement

Don’t think of your retirement date as your deadline for saving. Instead, continue to save money throughout your retirement years. Saving may become more difficult after retirement as a result of reduced income and potentially increased medical expenses. Putting away just a little each month can make a significant difference in how long your money will last.

Note that some of the powerful tax-deferred savings vehicles you took advantage of while working may no longer be available to you during retirement. To participate in a 401(k), for example, you must be employed by a company that offers such a plan and must meet the employer’s eligibility requirements (e.g., length of service). IRAs only allow you to contribute earned income (i.e., job earnings) and generally don’t permit any contributions after age 70½ (except in the case of Roth IRAs).


Re-evaluate your standard of living in retirement

If your projected income shortfall is severe enough or if time is too tight, you may realize that no matter what measures you take, you will not be able to afford the lifestyle you want during your retirement years. You may simply have to accept the fact that your retirement will not be the jet-setting, luxurious, permanent vacation you had envisioned. Recognize the difference between the things you want and the things you need and you’ll have an easier time deciding where you can make adjustments. Here are a few suggestions:

  • Reduce your housing expectations
  • Cut down on travel plans
  • Consider a less expensive automobile

For more information about solving income shortfalls, give our office a call today at 775-674-2223.