As a retiree it is important for you to know that you have sufficient funds to lead a life full of enjoyment after you retirement from the job. To make that happen, you need to act a bit wisely and open a retirement account. It can be a great source of income when you are old after retirement.
There are a number of retirement accounts that you can opt for to get that financial stability after you leave your job.
Some of the most preferred retirement accounts that you can opt for are:
401 (k) accounts: This type of retirement account is mostly prevalent in the private sector. It is one of the ideal retirement accounts that you can have to enjoy better benefits in the long run. If your employer offers you the chance to have 401 (K) account, you should accept it. By making regular contributions, you can add to your 401 (k) account which will help you in the post retirement period.
IRA Account: Another most preferred form of savings for the retirees is the IRA or the Individual Retirement Account. You can either opt for traditional IRA account or Roth IRA account. In addition to providing you long term benefits, the IRA accounts also get lots of tax benefits.
Making your retirement accounts last longer is also another vital aspect of maximizing your benefits.
Some of the tips that you need to follow are:
Do not make withdrawals: Try not to withdraw from the IRAs, 401(k) s and 403(b) accounts. This will help you to make your account last longer and you also need not pay any kind of taxes.
Extend the social security claims: Extend the time to claim the benefits of your social security. Social Security is calculated as per the highest years of earning. If you delay the Social Security claims, you can easily add to your benefits. You can enjoy around 7 to 8% annually.