So, here it is, the big ‘R’. You’ve spent a lifetime working, setting monies aside for investment after retirement. Now you’re here! What to do? Most likely, your investment after retirement will consist of a pension (?), 401(K), or IRA and Social Security. Statistics say that the average savings in a retirement plan is $100,000.
After you’ve figured out your expenses, down sizing, making changes, you must figure income including a part time job if necessary. Once you have all of the particulars figured out you can give attention to how you are going to manage your investment after retirement.
Two of the main components of investing after retirement is to be conservative and use your funds in a tax advantage way. Too many retirees get foiled into thinking that they can invest in investments that promise high returns usually in a short period of time. Can you say Bernie Madoff? We have heard the saying, “if it’s too good to be true, is usually is”. We can’t let greed be our guide.
Look for investment after retirement that will be relatively stable such as bonds, c.d., money market accounts and annuities. These are not sexy but will keep you safe. Remember, each of them has their own definitions. It’s up to you to see what fits your risk tolerance. These should not have risks associated with them.
As far as taxes are concerned when investing after retirement, use funds that have the lowest tax liability. This strategy allows you to maintain your principal balance at as high a level as possible because the more taxes taken out of your withdrawals, the more principal you will have to withdraw to meet your expenses.
First investment after retirement is to withdraw any monies from a non retirement savings account. You’ve already paid taxes on these funds, so withdrawals will not cost you anything. Once these are depleted, go to your 401(K) or IRA. The best way to do this is to roll these funds into an annuity and start receiving a monthly income. You will enjoy a safe monthly income with guaranteed income while investing after retirement.
Remember, investments after retirement are probably more important to you than ever before. Consult a financial specialist, tax attorney.
Ric Dalberri is a graduate of Columbia State University & has been involved in his own business (sold) employing over 100 people. Ric was also a top producer as a Financial Specialist for over a decade with one of the largest financial institutions in the U.S.
Ric is the founder of Retirement USA which provides complete solutions for your lifestyle. Please visit and sign up for the free newsletter.
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