Saving enough for a comfortable retirement can feel like a colossal obstacle, and that is even before including potential travel costs.
Josh Jalinski, an author of “Retirement Reality Check” and president of Jalinski Advisory Group, has four cash saving tips that could assist people with paying for travel costs in retirement.
1. Start saving
Jalinski proposes maximizing 401(k) or a Roth 401(k) and stashing 10% to 15% of income for retirement when people can.
2. Concentrate on income
Such a large number of individuals are focused on asset allocation and diversification as opposed to the actual income they’ll require in retirement, Jalinski said.
Nonetheless, he believes the 4% rule, which is a commonly utilized metric for how much a retiree ought to withdraw from their retirement accounts every year, is dead.
For example, on the off chance that people saved a million dollars when they retired, they could withdraw $40,000 every year. That scarcely appears enough to live on and travel during retirement, Jalinski said.
“Think about a proper spend-down strategy where you get to spend all your money until the day you die and when the hearse comes and picks you up from the funeral parlor, your last check bounces,” Jalinski said.
3. Consider a consumer-friendly annuity
An annuity can be a tool for people to procure a paycheck or a “playcheck” for the rest of their life, Jalinski said.
“Think about the last person you know who retired with a pension. They love it. They get checks in like clockwork,” Jalinski said.
He noticed that annuities are upheld by insurance companies and some even accompany practically no fees, yet he cautions that shoppers should consider additional risks and costs.
4. Be tax-smart
Jalinski said such a large number of individuals have cash sitting in a customary IRA or 401(k) without considering how to maximize their tax benefits.
For instance, in the event that people have 10% of their retirement reserve funds in a 401(k), he proposes placing 5% of it in a Roth 401(k). That way people can withdraw some of their savings tax-free later on in life.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No News View 360 journalist was involved in the writing and production of this article.