Retirement

Once you have retired, your financial focus is likely to shift from asset growth to asset preservation. When you are no longer receiving a paycheck (or perhaps are working part time), you need to make your savings and investments last, to meet living expenses not covered by Social Security or pension benefits.  

Know the impact of taxes on your distributions 

You worked hard to accumulate savings, so you will want to keep as much of that money as you can. Consider the impact of taxes when evaluating your options for withdrawing money from your retirement accounts, including how withdrawals plus your Social Security or pension benefits affect your tax bracket. 

Homestead Funds does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. 

Understand withdrawal requirements 

With most retirement accounts, you must start taking required minimum distributions from your account, and pay tax on them, when you reach age 72 (73 if you reach age 72 after December 31, 2022). Some types of accounts have annual minimum distribution requirements; others allow you to choose when and how much to withdraw. You’ll need to know the requirements for your 401(k) and/or IRAs (traditional and Roth IRAs). 

Related Resources:

• Managing Your Savings in Retirement
• Taking Your Required Minimum Distribution
• Automatic Transactions Sign-Up Form

Confirm your beneficiaries 

It’s a good idea to review the beneficiaries named on your retirement accounts (and all of your accounts), as family situations change through marriage, divorce, births and deaths. It’s easy to confirm the beneficiaries of your Homestead Funds IRA account. Just log in to your Homestead Funds account. 

Define your priorities 

In retirement, your primary focus is likely to be preserving the value of your assets rather than fueling account growth. You might also be in a position to consider how you can use your assets to support family and causes you care about.  

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