Lifestyle

How To Unlock Time, Money, and Fulfillment for a Breezy Retirement

The following article was written in collaboration with CoverRight and was originally published on CoverRight's blog.

logomark-square

Retirable

Published April 5th, 2024

Table of Contents

Key Takeaways

The following article was written in partnership with CoverRight

We created this guide with the goal of furnishing you with knowledge that will leave you feeling better positioned to manage your finances and unlock all retirement has to offer.

The following article was written in collaboration with CoverRight and was originally published on CoverRight's blog.

Considering dialing down your full-time hustle, becoming an empty nester, or riding into the sunset of retirement? If yes, you’ve arrived at the exact right place!

We created this guide with the goal of furnishing you with knowledge that will leave you feeling better positioned to manage your finances and unlock all retirement has to offer. Leveraging these five strategies, you can turn up the brightness of your future and make this next era your best era.

Strategy #1: Portfolio Risk Management

Portfolio risk management is an important and time-tested tool to fortify your future against the effects of market volatility and unexpected events. The practice is centered around the concept of diversification: by spreading investments across asset classes, you are able to mitigate the impact of any individual asset’s underperformance.

If you invest in many different things, whose performances are largely uncorrelated with each other, you will reduce your chances of losing a large sum of money in one fell swoop. For example, in 2008 the S&P 500 had a negative return of 37.00%, which, on a $100k investment would have resulted in an ending value of $63,000. Alternatively, if you had allocated just half of your funds to the fixed income, your ending value at the end of 2008 would have been approximately $84,120.

Don’t put all your eggs in one basket, folks!

Inflation? Recession? No worries.

Download our new guide to help safeguard your retirement.
Recession Proof Your Retirement eBook

Strategy #2: Tax & Withdrawal Efficiency

Tax efficiency refers to strategies which minimize the negative impact of taxes on investment returns. Utilization of tax-advantaged accounts (such as 401(k)s, IRAs, and Roth accounts) is a popular and effective tax efficiency optimization strategy.

Withdrawal efficiency refers to coordinating the sequence and timing of withdrawals from retirement accounts (i.e., IRAs, 401(k)s, and Roth accounts) to maximize income. One popular withdrawal efficiency optimization strategy includes minimizing required minimum distributions (RMDs), which in turn keeps your tax liabilities low.

Retirable points out: "Certain funds will be taxed on retirement while others won't." Be sure to consult with a tax advisor or certified financial planner if you have questions about the tax implications pertaining to your personal financial situation.

Remember, if you budget aptly and plan ahead, tax and withdrawal strategies can help you protect your retirement treasure trove!

Strategy #3: Use a Retirement Calculator

Retirement calculators are your GPS for the financial journey. Retirable also offers a retirement calculator where you input your details and get a sneak peek into your retirement adventure. This tool is free and easy to use because unlocking the power of your future should be a breeze!

Strategy #4: Put Money into a High-Yield Savings Account

Want to keep some cash available for a rainy day? Don’t want to see inflation chip away at your hard-earned savings? Time to open up a high-yield savings account. With a high-yield savings account such as this one, you can set a monthly savings goal and watch your cash balance grow to new heights. It's like earning more by doing less—because who doesn't want financial gains on autopilot?

Wondering if healthcare costs will get in the way of your retirement?

CoverRight can help you make sense of it all.

Strategy #5: Proactive Management of Healthcare Costs

Healthcare cost inflation is rampant, with 80% of retirees stating that “out-of-control healthcare costs” are their biggest fear. Drug costs, a huge part of retirement healthcare for many people, can take a massive chunk out of your savings if you are not in the right Medicare plan. For example, for someone living in New York City (zip code 10009), the price difference for Jardiance (antidiabetic medication) across the most expensive and least expensive plan is $269.23 per month.

These numbers speak to why proactive management of your healthcare plan is a key ingredient for thriving in retirement. For this task, enrollment periods are your secret weapon. If you are unsure about sticking with your plan, or just want to make sure you know how to maximize your existing coverage, feel free to reach out to CoverRight for a free Medicare plan consultation with a licensed Medicare expert.

So, there you have it—a comprehensive guide to unlocking time, money, and fulfillment for a breezy, rewarding retirement. Armed with these tooltips, you can ensure that your lifelong catalog of hard work will be able to fuel a wonderful retirement for you and your loved ones.

Need help making sense of it all?

We're here to help you navigate your retirement journey.
Income and expenses charts

Share this advice


Retirable
Retirable

Retirable, the first-of-its-kind holistic retirement solution with the ongoing care of an advisor, offers products and services across the retirement investing, planning and spending spectrum. Retirable was founded by industry veterans to empower a worry-free retirement for everyone.

Ad image

Recession-Proof Your Retirement

Download our guide to help safeguard your retirement from economic shifts.



Share this advice


Retirable
Retirable

Retirable, the first-of-its-kind holistic retirement solution with the ongoing care of an advisor, offers products and services across the retirement investing, planning and spending spectrum. Retirable was founded by industry veterans to empower a worry-free retirement for everyone.

Free Retirement Consultation

Still have questions about how to properly plan for retirement? Speak with a licensed fiduciary for free.

personal-plan

Free Retirement Consultation

Still have questions about how to properly plan for retirement? Speak with a licensed fiduciary for free.

personal-plan

To empower a confident, worry-free retirement for everyone.

Legal

Retirable, Inc. ('Retirable') is an SEC registered investment advisor. By using this website, you accept our Terms and Conditions and Privacy Policy. Retirable provides holistic retirement planning services, which are available only to residents of the United States. You must be at least 18 years of age to become a Retirable Premium user. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.

Investing involves risk and past performance is not indicative of future results. Increased spending increases the risk of depleting your savings and performance is not guaranteed. It is very important to do your own analysis before making any decisions based on your own personal circumstances.

For more information, see our Form ADV Part II and other disclosures.

Retirable is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC. The Retirable Business Visa® Debit Card is issued Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa cards are accepted. FDIC insurance is available for funds on deposit through Thread Bank, Member FDIC. Pass-through insurance coverage is subject to conditions.

Your deposits qualify up to a maximum of $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program athttps://go.thread.bank/sweepdisclosure and a list of program banks athttps://go.thread.bank/programbanks. Please contact [email protected] with questions on the sweep program.

* The interest rate on Retirable Consumer Deposit Account Tier 2 is 3.4% with Annual Percentage Yield (APY) of 3.45%. The interest rates are accurate as ofSep 19, 2024. Rate is variable and is subject to change after account opening. Fees may reduce earnings.

** Refer to the fee schedule in your Consumer Deposit Account Agreement

© 2024 Retirable Inc. All rights reserved.

We're accredited and certified by

To empower a confident, worry-free retirement for everyone.

Legal

Retirable, Inc. ('Retirable') is an SEC registered investment advisor. By using this website, you accept our Terms and Conditions and Privacy Policy. Retirable provides holistic retirement planning services, which are available only to residents of the United States. You must be at least 18 years of age to become a Retirable Premium user. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.

Investing involves risk and past performance is not indicative of future results. Increased spending increases the risk of depleting your savings and performance is not guaranteed. It is very important to do your own analysis before making any decisions based on your own personal circumstances.

For more information, see our Form ADV Part II and other disclosures.

Retirable is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC. The Retirable Business Visa® Debit Card is issued Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa cards are accepted. FDIC insurance is available for funds on deposit through Thread Bank, Member FDIC. Pass-through insurance coverage is subject to conditions.

Your deposits qualify up to a maximum of $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program athttps://go.thread.bank/sweepdisclosure and a list of program banks athttps://go.thread.bank/programbanks. Please contact [email protected] with questions on the sweep program.

* The interest rate on Retirable Consumer Deposit Account Tier 2 is 3.4% with Annual Percentage Yield (APY) of 3.45%. The interest rates are accurate as ofSep 19, 2024. Rate is variable and is subject to change after account opening. Fees may reduce earnings.

** Refer to the fee schedule in your Consumer Deposit Account Agreement

© 2024 Retirable Inc. All rights reserved.

We're accredited and certified by