If you’re trying to close the gap between the amount you’ve saved for retirement and the amount that you want and need here are some strategies that may definitely help:
Cut back your spending
Consider lowering your monthly overhead by downsizing your home and/or moving to a more affordable area.
Re-evaluate your insurance policies. If you increase your deductible from $250 to $500, you might be able to cut your premiums by 10% to 20%.
Look for other adjustments you can make some to reduce your expenses and minimize taxes.
Save more, starting now
Even if you’re getting started late, save as much as you can now.
Delay your retirement date
You can choose to work longer, delaying the date when you’ll depend on your portfolio income. A few additional years of full-time or even a part-time income can make a big difference in achieving your retirement plan. If you own your own business, think about revising your business exit strategy in a way that generates more assets or income to support your retirement lifestyle.
Pay your taxes quarterly
Rather than having your taxes automatically withheld from your retirement distributions, arrange to pay estimated taxes quarterly so you have access to the funds in the interim. Consult your tax advisor for assistance with determining your quarterly payments.
Distribute $ strategically
Consider withdrawing funds first from Social Security, then from taxable investment accounts, and last from your retirement accounts, such as IRAs and other tax-deferred accounts. Your goal is to cover your monthly expenses, minimize your income taxes, and keep as much money as possible working tax-deferred for your future. Consult your tax advisor to determine the right decisions for your situation.
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