Planning for retirement can mean golden years
Income stream.
Those two words come up repeatedly as financial planner James Atkins discusses what baby boomers need to consider as retirement nears.
What he helps clients with early in their relationship is to determine where the financial resources will regularly come from to cover basic monthly expenses that include housing, food, transportation, medical expenses and entertainment.
“If you have a 12 pack every weekend for entertainment, that’s not going to go away because you retire,” he says, laughing.
It is critical, says Atkins, who’s served as a financial adviser for 30 years, that boomers even think about Social Security.
For instance, for those born after 1943, the full Social Security retirement age is 66 to 67. But it is possible for individuals to draw benefits at age 62, though they’ll only receive 75 percent of the monthly benefit they’d get by waiting until 66 or 67.
If you can wait to draw on your benefits, you can decidely maximize your return. At the age of 70, for instance, you can collect 132 percent of your full retirement benefit — income based on your past earnings.
Healthy boomers who realize they couldn’t cover basic expenses — Atkins notes the largest part of retirement income often comes from Social Security and a private or state pension plan — may decide it’s best to hold off retirement.
Key for many, Atkins says, is whether to invest in a Medicare Advantage plan, which offers extra coverage so retirees pay less out of pocket for medical care than with original Medicare. Advantage plans generally also include prescription drug coverage as well as some dental, vision and wellness coverage.
“Medical expenses grow in a hurry,” stresses Atkins, who heads Atkins Solutions in Las Vegas.
For working boomers, Atkins says investments can be made in annuities, which can provide a monthly income for life.
“It’s never too late to start saving,” he says.
Both Individual Retirement Accounts and 401k retirement plans provide tax advantages, with the 401k often having some employer match to the contributions of employees.
Many boomers, he says, have to decide whether to save or spend inheritances handed down by parents.
“There are many decisions to be made,” he says. “But you always have to be sure you have an income stream covering basics. You have to plan.”
Paul Harasim’s column runs Sunday, Tuesday and Friday in the Nevada section and Thursday in the Life section. Contact him at pharasim@reviewjournal.
