It’s no secret that many people are living longer and healthier lives these days. That’s good news! However, it also means that your retirement may need to last a lot longer than you had originally planned. So how can you make sure your nest egg lasts as long as you do? Here are a few tips by William Schantz of mafllc.
5 Ways to Make Your Retirement Savings Last
Minimizing Your Fixed Expenses
According to William Schantz, one of the best ways to make your retirement savings last is to minimize your fixed expenses. That way, you’ll have more flexibility in your budget and won’t have to dip into your savings as much. You can do this by downsizing your home, getting rid of expensive hobbies, and cutting back on your travel.
Making Smart Investments
Another way to make your retirement savings last is to make smart investments. This means investing in things that have a good chance of appreciating in value over time, such as real estate or stocks. It also means diversifying your investments so that you’re not putting all your eggs in one basket.
Maximizing Your Social Security Benefits
Social Security can play a big role in helping you make your retirement savings last. So it’s important to maximize your benefits by understanding how the program works and when to claim them. If you start your Social Security at a very early stage, for example, you may get a lower monthly benefit than if you wait until your full retirement age.
You can also consider delaying your benefits even further. For every year you delay past your full retirement age, your benefits will increase by about 8%. So, if you’re able to wait a few extra years to start collecting, it can really pay off.
Working Part-Time in Retirement
William Schantz is of the opinion that if you’re healthy and able, working part-time in retirement can be a great way to supplement your income and make your savings last longer. Not only will you have some extra money coming in each month, but you’ll also get the added benefit of staying active and engaged.
Of course, there are a few things to keep in mind if you’re thinking about working during retirement. First, you’ll want to make sure that your job doesn’t interfere with your ability to enjoy your free time. Second, you’ll need to make sure that your job provides good health insurance coverage since Medicare doesn’t cover everything.
Making Smart Withdrawals from Your Retirement Accounts
If you have a 401(k) or IRA, you’ll need to be careful about how you withdraw money from these accounts during retirement. If you make withdrawals too early, you may end up paying a lot in taxes and penalties. But if you wait too long, you may not have enough money to cover your expenses.
The best strategy is to start making withdrawals gradually, as needed. That way, you can avoid the taxes and penalties but still have the money you need to cover your costs.
These are just a few ways you can make your retirement savings last. By following these tips by William Schantz, you can enjoy a long and carefree retirement without having to worry about running out of money.