Episode 168: The Most Important Birthdays In Retirement Planning
Today’s Prep:
After you blow out the candles, what do you need to know as you cross the threshold of certain birthdays in your life? David shares important ages when financial planning.
Equipping Points:
No matter how old you are, this episode is for you. We talk birthdays and milestones you’ll want to keep in mind when it comes to your financial plan.
If you’re about 30 years old, it’s important to have long-term financial goals in mind. Have automatic contributions to your 401(k) and/or IRA. Make sure you’ve eliminated credit card debt from your life. Finally, make sure to do an annual net worth statement to see exactly where you are and where you’ve been.
Once you get to 50 years old, after years of saving and working hard at your career, you are allowed to put more into your 401(k) or IRA. These are called catch-up contributions with extra money allowed into these accounts. If a proposed bill passes, you may be able to put in even more money into your investment accounts.
At age 59 and a half, you can take money out of your IRAs and 401(k) without penalty. When you get to 62, you can begin to claim Social Security. There are reasons why you might want to put it off until later, but it’s good to know your options. By 65, you are eligible for Medicare. From 66 to 67, you will reach full retirement age (depending on what year you were born) and full retirement benefits.
Required minimum distributions start at age 72. This means you’ll have to take out a certain amount of your IRAs and 401(k)s. The proposed bill might move the age to 73 next year, but then go up to 74 and 75 for RMDs in the future. Some take money out of their IRAs because they need the money. For those who don’t need it, this can make a big difference on your tax bill.
What’s the most important age of all? David shares how you can feel most confident in retirement, regardless of how old you are.
If you ever want your question spotlighted on the show or to ask David something about your retirement, email him at [email protected]
Listen to the entire episode or skip ahead using the timestamps below to skip to a particular question.
0:30 - How do we feel about that final NCAA tournament game?
3:01 - What should you be aware of around 30 years old?
4:18 - What can you do at age 50?
7:17 - What happens at age 55?
9:14 - By 62, what options do you have?
12:11 - At 65 you’re eligible for Medicare.
13:02 - What’s important about 66 and 67?
14:31 - You can delay Social Security benefits until 70.
15:04 - RMDs start at 72.
18:16 - What age is most important?
Today’s Takeaway:
“Having a real plan, a written plan, for your retirement (especially if you’re over 50), gives you a whole lot of confidence as you’re getting toward that day."
– David Dickens
KC Financial Advisors Blog


