For those who are getting ready to retire in the next five to 10 years, there are a lot of decisions to be made first, which is why we provide custom retirement planning, including Social Security and Medicare optimization. One of the things we look at is the amount of savings you have in traditional 401(k), IRAs and similar plans, because you must begin withdrawing these funds and paying income taxes on withdrawals annually beginning at age 73. By planning ahead, you may be able to better mitigate income taxes for the long-term, as well as put your heirs and loved ones in a better tax position later.
Retirement Planning
at Prime Capital Financial Little Rock
But what also plays in to the retirement income puzzle is what your adjusted gross income is two years prior to filing for Medicare at age 65. (NOTE: If you are still working for an employer with 20+ employees and have health insurance that meets Medicare standards, you may want to go ahead and file for Part A, which is free for most.) Your Medicare premium could exceed $600 per month per person in 2025 if your income is high enough. We will help you potentially find ways to lower your taxable income before you file.
The age at which you file for Social Security benefits also matters. You are allowed to file for Social Security at age 62, but your benefit will be reduced permanently—it does not automatically rise at your full retirement age. Full retirement age is around age 67 for most, depending on month and year of birth. If you wait to file from full retirement age up until age 70, your benefit increases annually by 8%. Married couples should plan for filing together to achieve the highest combined benefits, and we can help you with this.
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Helping you reach the Pinnacle of your Mountain, one step at a time.
Beginning with a team approach, Prime Capital Financial Little Rock uses its entire collection of resources and connections to create a custom financial plan tailored to your objectives. Working with families, business owners and individuals, we pride ourselves in our ability to provide the highest level of service, no matter how complex your needs. Simply by understanding your goals, we’re prepared for any questions you may have when it comes to finance, and we stand next to you, not as coaches, but as teammates to help you design a financial roadmap with your vision as the destination.
