Working people that are nearing their retirement age, usually consider hiring a financial expert, familiar with not just economic but also legal terms and current legislation, when it comes to planning a withdrawal from active work. Sometimes it is easier and cheaper to use online advisory services. Here are some of the best sites for this purpose:
- Betterment open account – robot assistance with easily affordable human support
- Sofi open account – access to various instruments and experts’ advice
- Bloom open account – 401(k) management plus experts’ advice
All this advisory, in the end, falls into the category of determining the income level for easy retirement. General rule is that the yearly income level at retirement age should be 80% of income in the last few years prior to retirement. Usually people who retire pay off their costs and expenses, like mortgages, rent, insurance and maintenance, before they stop actively working. These are the most common costs every household in the US has before the retirement age of its main earners. However, new costs tend to appear in the retirement age, like costs of elderly care or new medical expenses.
There are also available deductions for elderly above 65 years of age. These deductions, retirees can enlarge if they invest in Roth accounts, longer term options or states which have looser tax policy. Tax deductions are also available for medical expenses, but up to 75% of yearly retirement income. Tax credits are available for disabled retirees, as another advantage of retirement age.