The Top Retirement Strategies

Delay Social Security to age 70: Most baby boomers full retirement age is 66. But by delaying their benefits until age 70, they’ll receive 132% of their benefit. Over half of them will live well into their early nineties, so the math is compelling.

Build a Social Security Income Bridge: Delaying Social Security benefits until age 70 makes real economic sense, but many boomers need a “bridging” strategy to get from age 62 to age 70. A reverse mortgage can generate tax-free income during those eight years that will help you get there.

Roth Conversions Prior to Age 70½: Converting taxable retirement plans to tax-free income is a great concept if the conversion doesn’t increase your tax bracket. If the economics support this conversion strategy, then you may lower your overall tax obligations at age 70, including Social Security benefit taxation.

Optimize Asset Distribution of After-tax and Pre-tax: Investment diversity is a major portfolio characteristic and tax diversity should be as well. Taxable income can be offset by tax deductions and exemptions. Tax deferred income can be delayed into the future, lowering your present taxable income. And tax-free income can be used when there’s no other asset available to keep your taxes in check during retirement.

Controlling RMDs, Taxes and Advanced Life Withdrawal Rates W/QLAC: A Qualified Longevity Annuity Contract defers income into the future resulting in lower required minimum distributions, and that can reduce your current tax bill. An individual can defer 25% of his qualified retirement monies not to exceed $125,000 up to age 85. QLACs use a deferred income annuity as the only IRA approved funding vehicle.

Building an Income Floor With Longevity Income Guarantees: Most seniors have reoccurring monthly bills and regular discretionary spending- such as taking vacations. But the commodities of everyday life seem to increase every year and you can no longer bank on annual Social Security increases. Dedicating part of your assets for guaranteed lifetime income with a cost of living adjustment can pay for your lifestyle in retirement without the worry of market volatility.

Utilize a Reverse Mortgage (HCEM Strategies): The government has three retirement programs: Social Security for Income, Medicare for Healthcare Costs and Home Equity Conversion Mortgage (HECM). HECM can re-characterize home loans for tax free income, or purchase a home eliminating a mortgage payment, or open an appreciating line of credit that is superior to traditional HELOC loans. Keep in mind all these strategies maintain a mortgage and you need to determine the most suitable option for your situation.