Reaching certain age milestones may have meaningful impacts on your financial plan. In addition to celebrating another birthday and stage of life, there are many retirement, investing, and income tax elements linked to your age. Below is a list of some significant ages and planning considerations to keep in mind:
66 and 2 months
66 and 4 months
66 and 6 months
66 and 8 months
66 and 10 months
Now that we know the milestones and considerations to keep in mind when reaching those ages, there are also planning opportunities available that could potentially benefit you.
Roth Conversion can be a great way to reach your retirement goals and make smart tax moves throughout your financial journey. However, timing a Roth Conversion is essential because you do not want to end up with unintended consequences. For example, converting to a Roth IRA shortly before turning 65 may increase your Medicare premiums – because Medicare premiums are income-based, and making a Roth Conversion involves recognizing additional income in the year of the conversion.
Qualified Charitable Distributions (QCD)
If you are over 70 1/2, you are not relying on your Required Minimum Distributions (RMDs) to meet your current income needs, and you are charitably inclined, you may want to consider donating IRA assets to a qualified charity. IRA owners can donate up to $100,000 (indexed for inflation starting in 2024) tax-free each year to charity.
Delaying Social Security Benefits
According to the Congressional Research Service, just under 30% of Social Security applicants were 62 in 2021. While many factors go into the decision-making process of when to start taking Social Security, retirees receive higher benefits by delaying the start of Social Security. Additionally, once you begin taking Social Security, those benefits are locked in and will only change based on the annual cost of living adjustment. The choice between taking the benefits at 62 or waiting is complicated and personal. If you are having trouble weighing your options, talk to a financial professional about what might work best for you. You can schedule a complimentary, no-obligation call with us here!
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About the Author
Holzberg Wealth Management is a family-owned and operated financial planning and investment management firm based in Marin County, CA. As your financial advisors, we serve you as a fiduciary and are fee-only, so we never receive commissions of any kind. We help individuals and families like you in the greater San Francisco Bay Area and virtually nationwide with the financial decision-making process to organize, grow, and protect your assets.
** This writing is for informational purposes only. The author and Holzberg Wealth Management do not guarantee or otherwise promise any results that may be obtained from using this report. No reader should make any investment decision without first consulting their financial advisor and conducting their own research and due diligence. These commentaries, analyses, opinions, and recommendations represent the personal and subjective views of the author and do not constitute a recommendation, offer, or solicitation to make any securities transaction. The information provided in this report is obtained from sources that the author believes to be reliable. External links to third parties are being provided for informational purposes only. Holzberg Wealth Management is not affiliated with the third-party websites linked to, unless otherwise explicitly stated, and does not constitute an endorsement or approval by Holzberg Wealth Management of any of the third party’s products, services, or opinions.