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Potential Strategies for Retirement Savings

Torrey Thompson

As general manager of Amerilife and Health Services in Atlanta, Georgia, Torrey Thompson leads day-to-day office operations as well as classes for the public. Torrey Thompson focuses such classes on strategies for retirement and understanding Medicare.

Preparing for retirement is a multifaceted endeavor. It requires a person first to determine what his or her needs and goals will be in retirement, and then to identify existing and potential income streams.

Many pre-retirees take advantage of savings plans like a traditional or Roth IRA or 401(k). Each offers different tax benefits. The traditional IRA or 401(k) allows a saver to deposit funds into the account without paying taxes on that amount. Taxes are only due on withdrawals from these accounts, while Roth products offer tax-free withdrawals but require savers to pay taxes on deposits.
Experts advise pre-retirees to examine their expected retirement expenditures and calculate how much their savings will be producing for them come retirement. If there is a deficit, the person may need to find ways to save more or alter distribution of assets. A financial professional can provide individualized advice in this regard.
Pre-retirees can also be thinking about how long they want to work and when they can begin to collect Social Security benefits. Those who choose to collect early but continue to work may have reduced benefits, while collecting later can increase one's benefit and allow the individual to work without penalty. As always, these decisions are based on individual needs and will not be right or wrong across the board.

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