Rightsizing for retirement
Forty-nine percent of Americans in their late 50s and early 60s have a mortgage. Their housing consumes at least one third of their budget. Looking for ways to reduce your housing expenses can make a big difference for your retirement scenario. By reducing your housing costs, you can invest the savings for retirement and significantly improve your retirement nest egg. Is rightsizing right for you?
Other ideas to help you prepare for retirement:
- request a new social security benefit statement, and understand benefits and drawbacks of when you plan to apply for benefits
- if you are within 3 months of turning 65 understand Medicare and your healthcare options
- begin defining your dreams and understand what that will cost you
Five Investment Tax Strategies You May Want to Consider
1. You may be able to exclude gains from the sale of a primary residence up to $250,000 for an individual or $500,000 for joint filers; subject to eligibility requirements.
2. Offset gains and loss when rebalancing your portfolio. If losses exceed gains for the year you may be able to carry the loss forward for future use.
3. If you’ve inherited an IRA or pension, you may be able to deduct any estate tax paid by the IRA owner from the taxes due on the withdrawals you take from the inherited account.
4. Make pre-tax contributions to an employer sponsored retirement plan, like a 401(k) or 403(b), or make contributions to an IRA.
5. If you are a bond investor, consider investing in municipal bonds for their tax exempt income; other taxes may still apply depending on your situation.
The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. There are maximum contribution limits for employer sponsored retirement plans and IRAs, as well as penalties for taking distributions prior to age 59½. Deductions for IRA contribution are subject to IRS rules.
Katy Boardwalk Project
"As an original member or the Katy TIRZ Board, and now serving on the Katy Management District 1 Board, I am very excited to talk about the progressive approach Katy has taken since the late 90’s to promote our city. Commercial development is growing our City and helping Katy residents with a strong tax base. The new Katy Boardwalk, Convention Center and Shopping Center will bring in upscale stores, lofts, restaurants, and more. These are exciting times for Katy residents." Don Cox, President of Cox Global Associates.
Image Credit: Katy Boardwalk District