Planning for your retirement: An Interview with Katherine Roy, Chief Retirement Strategist | JP Morgan Funds
Planning for retirement can be overwhelming. Katherine Roy breaks down three key points to focus on – the impact of long-term investing through market volatility, when to take your Social Security benefits and how to adjust your retirement plans based on the SECURE ACT from 2019.
- Staying invested for the long-term and focusing on the areas you can control, will dictate your success:
- Amount of money you save vs. spend
- Asset allocation and location
- Align your investment strategy with your goals. By varying the levels of risk with different time horizons, you work to ensure you meet both short-term (emergency cash needs) and long-term (retirement) savings objectives.
- To delay your benefit means more Social Security income later in life. It is important to understand the breakeven point – how long you need to live to benefit from a delay.
- It is projected that by 2035, the trust fund holding the Social Security dollars will dry up, leaving a 20% deficit to cover Social Security benefits moving forward.
- The stretch IRA option was eliminated for most non-spouse beneficiaries, meaning full withdrawal is required within 10 years of the account owners death, and the beneficiaries will most likely be paying more in taxes.
- The Required Minimum Distribution age was increased from 70 1/2 to 72. Consider a Roth conversion to take advantage of lower income tax brackets now versus higher brackets in retirement.