Are You in the Retirement Sweet Spot?

The term “retirement sweet spot” refers to that period after you have officially retired but before you are mandated by law to take out required distributions from a qualified retirement account. Many folks have built up sizeable nest-eggs in their 401k’s and IRA’s by this time. There may be, however, savvy financial moves to consider siting this period.

Several Moves to Consider Making

Some of the financial moves to consider making when in the retirement sweet spot include:

  • Convery your Traditional IRA into a Roth IRA
  • Sell Your Stock Winners, especially if they constitute an outsized percentage of your portfolio
  • Sell any Employee Stock Options that are In-The-Money
  • Sell any Savings Bonds you own

All of these potential moves require the knowledge of the regulations and laws that may govern them. Several of these potential portfolio changes revolve around any recent changes in your tax status. For example, if your income is lower now then when in your peak earnings years, selling stock winners may make sense because of your lower tax bracket. In addition, you may now qualify to make the Roth conversion you’ve been eyeing for the past few years. Moreover, cashing in on valuable stock options can result in a taxable event, which will be less of a hit if you are now in a lower tax bracket. The same reasoning would apply if you have systematically built up a large amount of savings bonds through payroll savings programs.

Do You Need Help with these Kinds of Decisions?

Even though you may have a nice sum built up in your retirement portfolio, not everyone wants to manage these funds by themselves. You may be looking for portfolio management Florissant MO. A trusted financial professional can be of great help in making the correct decisions for many of these considerations. You may find yourself saving quite a bit of money!

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