Financial advisor David Giertz gives tips on retirement

Retirement is a stage in life that surely you’ll eventually encounter and it’s vital to know your options. Experienced financial advisor David Giertz shares some valuable tips you must know about.

How much should you save?

It is very common for people to miscalculate their spending habits and expect to have enough money when retired. Sadly, many find themselves having to return to work after spending all their savings in only a few years. By the time you retire, he advises you to have saved, at least 15 years worth of salary. This means that if you plan to retire by the age of 65, you better have already saved five years worth of salary by the age of 55. People looking to retire much sooner might have to add more years to that figure.

Required Minimum Distribution and the IRS

Even when you have retired, David adds that you will still have to deal with the IRS and they will have command over part of your retirement savings. The IRS mandated Required Minimum Distribution (RMD) puts you in a situation where you must withdraw a certain amount of money before you hit 72 ½ years of age. Failing to follow this rule can have you penalized so severely that you can end up paying up to 50% on tax. Keep in mind that your retirement plan will most likely be taxable.

Other factors to consider

Although its fees are higher, a wise choice is to consider a structured income using annuity. The most recommended is one in which you receive a fixed amount of money monthly but is guaranteed to keep you from blowing it all. At an older age, health problems are also very common and can be very expensive. Keep that in mind when saving.

About David

David Giertz currently holds a BS from Millikin University and an MBA from the University of Miami. He has over 30 years of experience working in industries related to financial services. In one case during his term of leadership, a company was able to grow its revenue by almost 600%.