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5 Questions to Ask Your Retirement Tax Accountant
July 9, 2022 at 7:00 AM
Brainstorming over paper

You can never start planning for retirement early enough. If you don’t know where to start or what questions to ask, it’s worth consulting a premier strategic financial and retirement planning firm like OWLFI. We’re committed to helping each client achieve their retirement goals.

We’ve compiled some questions to ask yourself and your retirement tax accountant to help you think about how your retirement might unfold.

1. How much money will I need to retire?

One of the most important questions you can answer with your retirement tax accountant is how much money you’ll need to retire. The amount you settle on will depend on factors like your age at retirement, how long you may live, and how much income you may receive from your retirement accounts and Social Security.

The amount you might need for retirement may range from several hundred thousand dollars to a few million. It all depends on how much money you plan on withdrawing each month and calculating how much you will spend on bills.

2. When should I claim my Social Security benefits?

When it comes to Social Security benefits, your age determines how much money you’ll receive. Most people wait until their full retirement age to take out their retirement benefits. You can claim as early as 62, but you will get reduced benefits. This means that you will end up taking a reduction that can cost you and your spouse in the long term.

If you delay until age 70, you will receive a roughly 8% increase per year. However, if you plan on waiting longer, there are no additional benefits.

3. How much will healthcare cost in retirement?

Healthcare costs in the United States fluctuate, making it hard to nail down how much you will spend during retirement. If you retire at 65, you may qualify for Medicare and can purchase additional coverage like Medigap or Medicare Advantage plans.

As a general estimate, you should plan on spending a few thousand dollars at the beginning of retirement. Costs will rise as you age, so you’ll need to budget more for premiums, copays, and dental and vision care.

4. Should I invest my retirement savings?

During the first few years of retirement, it’s essential to avoid taking any major losses. Constant withdrawals from your account can cause you to run out of money sooner rather than later. It’s worth considering investing your money to preserve it.

A retirement tax account can show you all of your options and walk you through what you can expect with each one.

5. Do annuities make sense for my situation?

Annuities make sense for some retirees, but for others, it can cause significant problems. A simple annuity like an immediate income annuity can be helpful as it pays you a monthly income for the rest of your life.

However, one of the most significant drawbacks with immediate annuities is that you might not get your money back, leaving your beneficiaries with nothing after your death. A retirement tax accountant can help answer any questions about annuities and help you decide if it’s worth it for your situation.

Call and speak with a retirement tax accountant today!

Whether you’re five or fifteen years away from retirement, it’s never too soon to start planning! Our financial advisors and retirement tax accounts can help you prepare to achieve your post-retirement goals.

Here at OWLFI, we are an unmatched strategic financial and retirement planning firm. We can help position you for success and ensure you have enough retirement income to enjoy your golden years.

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