5 Retirement Tips From Money Expert Suze Orman
When he comes retirement planningThere are few voices as influential as Suze Orman. Orman, a New York Times bestselling author and former Emmy-winning television personality, is a powerhouse in financial advice.
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It goes without saying that Orman is highly respected because he knows his stuff. And when it comes to retirement, there are many helpful tips and tricks to help you be prepared. Here are seven retirement strategies from Suze Orman helps you create a secure financial future.
Orman highly recommends Roth IRAs and Roth 401(k)s for all income levels. He argues that there is “no reason” to choose traditional tax-deferred accounts when Roth accounts offer tax-free growth and withdrawals.
One reason why Orman loves Roth IRAs Specifically, you can withdraw money tax-free at any point in your life. While you ideally want to keep your money until your golden years, a Roth IRA can get you out of financial trouble when you’re in a pinch.
Of course, if your employer offers a 401(k) program and matches contributions, you’ll want to contribute as much as possible to that plan before contributing to your Roth IRA.
If your employer offers Roth 401(k) and traditional 401(k), choose Roth 401(k). Money in a Roth 401(k) can be rolled over to a Roth IRA, which is not subject to required minimum distribution rules. This means that if you don’t need the money, you don’t need to take it out.
Market fluctuations are one of the realities of stock market investing. If you are 10 or more years away from retirement, you should not sell your stocks in a down market. Here’s how you should look at these declines: great deals To get more stock, according to Orman. This is because most of the time the market will recover and with it your investments.
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Not requesting an employer match in your 401(k) is like leaving free money on the table. Orman emphasizes sufficient contribution get the full matchThis can add up to tens of thousands of dollars over time.
Big life events like getting married shouldn’t leave you broke. Orman said he has encountered many situations where parents have withdrawn money from retirement savings or stopped contributing to a child’s wedding. This might seem like a situation worth making a financial sacrifice, but Orman said it’s not if your retirement funds are on the line.
