Planning for Retirement

Retirement options and investment advice from SC Federal Credit Union

By REBEKAH PIEPER

The appeal of life in the Lowcountry is certainly not hard to understand. The list of restaurants to sample, waterways to explore and events to attend is lengthy. So, how do you make days on the beach and dinners on the town a reality without a full-time income? 

Figuring out how to live comfortably in retirement is as much a personal issue, as it is a financial decision. You have to develop a strategy that will allow you to enjoy your retirement, while minimizing the stress of worrying about your funds. The best step is to do your homework so you’re prepared for this important transition in life and enlist experts who can help make your retirement dreams achievable. 

Spend Wisely

Americans are living longer and retiring earlier, and as such the number of years spent in retirement is increasing. According to the American Association of Retired Persons (AARP), people often spend more in retirement than expected. Develop a budget for your expenses, and stick to it. Planning carefully, investing wisely and spending thoughtfully will help increase the likelihood that your retirement will be a financially secure one.

Distribution Options

Make sure you are aware of the distribution options available from your retirement accounts. Generally, most 401(k) plans do not offer distributions in the form of annuity payments. Annuity payments allow you to withdraw funds slowly over a long period of time, to conserve the principal balance. Individual retirement accounts (IRAs) typically offer more distribution options, and allow you to consolidate assets. Consider if rolling over assets to a Traditional IRA is right for you.

Social Security

No matter what your full retirement age is, you may be eligible for benefits as early as age 62. However, if you start at an early age, your benefits may be reduced. Conversely, if you delay retirement, you can increase your Social Security retirement benefit.

Part Time Employment

Consider looking for part time employment. Not only would it provide an additional source of income, but it may help ease the difficult transition into retirement. According to AARP, 68% of retirees named the need for money as the primary reason for working beyond retirement. The number two reason is the need for healthcare.

Who Can Help Me?

Luckily there are many choices when searching for a financial professional. Many financial professionals will work with you to identify your life goals, develop and implement an investment plan, and provide ongoing advice. Possibly the best place to begin your search is at your local credit union.

Below are a few questions to ask when interviewing candidates:

• Exactly what financial services will you provide?

• How are you qualified to provide those services?

• How will I pay for your financial products or services?

If you are interested in discussing retirement or learning more about your personal options, Investment Solutions, through CFS*, offers a complimentary financial plan and a forecasting tool to help you establish and reach your financial goals. The Investment Solutions team brings many years of experience, specializing in tax strategies using 401(k)/IRA rollovers and other solutions available. Readers can schedule a no-obligation appointment to meet with an Investment Solutions financial advisor and gain valuable information on financial planning topics including: 

• 403b, 401(k), and IRA Rollovers
• Tax Efficient Distribution Strategies
• Social Security Benefit Maximization
• Life & Long-Term Care Insurance
• Retirement and Business Services 

Connect with a SC Federal Credit Union advisor at 843-569-4917 or visit scfederal.org/investments to start paving the way to your retirement today. 

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. CUSO Financial Services, L.P. and its representatives do not provide tax advice. For such advice, please contact a tax professional. Before deciding whether to retain assets in an employer sponsored plan or roll over to an IRA an investor should consider various factors including, but not limited to: investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock.