Apr 7, 2022

We all go through chapters in life, especially as we approach and enter retirement. On today’s episode, we are going to discuss some age-related questions many pre-retirees and retirees have. Which ages are most important when it comes to your retirement plan?

Peg and Paul have already started Social Security, but regulations ended up changing their original Social Security strategy. So, Peg started taking this benefit at 62, which made for a reduced benefit. She ended up taking this lower benefit for the rest of her life despite this not being their original plan. 

A lot of these regulatory changes don’t get reported on and this couple was doing their planning on their own. What they had set in place accidentally became set in stone. That’s why we encourage planning early and with an advisor that can keep track of regulatory changes for you. 

Larry’s been working for the same company for 32 years. He wants to retire but is not 59 ½ yet, the age you must be to take out money from your retirement accounts. Is he stuck working until then?  

There could be various options available for Larry. If he separates from his company there’s a rule that allows him to take money out of that employer-sponsored 401(k) after the age of 55. 

So, he won’t have to wait until 59 ½, but this rule only applies to the company he retired from. If Larry has other accounts though, he’ll have to wait. 

Steve is worried about his mother living on her own. He’s wondering if it’s a smart move to have her sign her house over to him instead of selling it when she needs to go into long-term care? 

From this question, it sounds like Steve is hoping to retain his mother’s home and have the state pay for her care. But there is a five-year lookback. If this is five years before you think she’ll need care, you may be okay but if it’s going to be a sooner transition her home will be considered. 

As we go through these changes in life, it’s always nice to sit back and reminisce. Retirement planning and life itself can be confusing, but you don’t have to navigate these questions alone. 

TIMESTAMPS: 

1:26 – Chapters in life

4:00 – Taking Social Security at 62

9:39 – Withdrawing money at 59 ½

13:37 – Buying my mom’s home

17:22 – Reminiscing through life

MORE INFORMATION:  https://www.flemingfinancialservices.com/podcast