Are you ready for retirement? Most Americans are not as prepared as they should be. Here are some important retirement dates and milestones to remember.
Important Financial Milestones
Your 59th Birthday
This is the date that you can start withdrawing from an IRA or 401k without having to pay a penalty for early withdrawals. Once you hit this age, you can start to access some of the money that you’ve saved over the years.
Your 62nd Birthday
Once you hit 62, you can start drawing Social Security benefits. As the date draws near you should consult with your financial advisor to determine if this is the right time to begin drawing.
Your eligibility for a Reverse Mortgage also begins on this date.Whether or not it’s the right time for you, is a decision to be made carefully. The wrong decision at the wrong time could end up costing you thousand$ over the course of your retirement.
Your 65th Birthday
This is the date that you become eligible for Medicare. There’s no reason not to sign up immediately, and you can actually start the process of signing up three months before you turn 65. If you decline to sign up at age 65, you might wind up paying more for the rest of your life.
Your 70th Birthday
If you’ve not already signed up for Social Security, Your payment will not go up after you turn 70, so you might as well make it a part of your planning process to sign up.
Age 70 1/2
This is the age at which you need to start making the minimum required distributions from any traditional IRA or 401k plans. If you fail to start taking the RMDs, you’ll actually wind up with a pretty hefty tax penalty. Your distributions need to start by April 1 of the year that you hit 70.5 years of age.
Important dates to remember
This is the date that the tax man expects his money. It’s also the last day that you can make contributions in your retirement accounts for the previous year. There are limits to how much you can put into an IRA in any given tax year. Consult with your financial advisor to determine the proper strategy for you.
October 15 to December 7
This is the open enrollment period for Medicare each year. You might want to make some changes to your coverage or sign up for a Medicare supplement during this period. Once the window is closed, your options also close until the next open enrollment period.
This date marks the end of the year each and every year. It’s also the date that allows you to maximize the tax benefit of any tax-deferred savings that you might make during the year. Many people will make big donations or contributions on this date to cut the amount of taxes that they have to pay each year.
November 1 and February 1
Many seniors are now paying their property taxes directly to the County Tax Collector. If you own your home mortgage free or if you have a reverse mortgage it is now your responsibility to ensure they are paid on time. (The New Reverse Mortgage does have an option where you can elect to have the lender pay them on your behalf).
In California property taxes are due twice a year. First half taxes are due on November 1 and delinquent on December 10. Second half taxes are due February 1 and delinquent April 10.
Anniversary of your Reverse Mortgage
Just like your wedding anniversary, this is not a date you want to have slip your mind.
Part of your obligations with a Reverse Mortgage is to ensure that your homeowner’s insurance remains current. Each year your insurance company will send you a renewal form, which should be returned promptly.
On or near the anniversary of your Reverse Mortgage closing you will receive a letter from your lender asking you to confirm that you still occupy the home as your primary residence. DO NOT ignore this letter! Failure to return it promptly will result in some phone calls and foreclosure proceedings if ignored for too long.
The New Reverse Mortgage isn’t for everyone…but it could be!
How do I know if The New Reverse Mortgage is right for me?
If you’re still wondering if a Reverse Mortgage is the right solution for you but you’re not ready to sit down with one of our Reverse Mortgage Experts, then we’ll be happy to mail (or email) you Use Your Home to Stay at Home which is the official federally approved consumer booklet for those considering a reverse mortgage.
Thanks to Steve Sexton of the Sexton Advisory group for some of this information