Our very own Stephen Barns joined the financial news publication MarketWatch to discuss ways for retirees to save.
Baby boomers are turning 65 at a record pace. In fact, an average of 11,000 will turn 65 this year, meaning they’re buckling in for retirement faster than ever. But turning 65 doesn’t just mean punching your last timecard and walking off into the sunset. Big decisions still remain on the horizon, such as when you should claim Social Security and which Medicare plan best suits your medical needs.
It also takes a shift in mindset as you move from the accumulation phase, during which you earn income and sock away money for the future, to the decumulation phase, when you’ll have to execute a carefully crafted plan to withdraw that money and make it last. That, however, can be a tricky transition, especially when baby boomers have been so focused on building their accounts. They may then be reluctant to spend that money they’ve worked so hard to grow.
That’s why it’s important to enlist in the help of a financial professional who can help you create a strategy to distribute that money throughout your retirement. For their article, MarketWatch consulted Stephen Barns, a financial advisor with more than 15 years of experience. While there are many strategies retirees can employ to preserve their funds, such as creating new streams of income, rolling money into tax-free vehicles and addressing healthcare needs ahead of schedule, Stephen focused on debt elimination. He said:
“It’s a lot easier to pay down debt when you’re still working than after you retire.”
That’s true for a few reasons. First, you’re still earning an income, giving you a reliable source of new funds to pay down debt and save in retirement accounts. Next, you don’t have to use your fixed income from accounts meant to be withdrawn from to pay off debt. That helps you preserve those balances for what you’d really like to use them for, such as your retirement goals and dreams.
Finally, paying down debt in retirement is a mental hassle, as you must figure those payments into your budget as opposed to using your money to fund the things you want to do. If you are able to eliminate that debt while still working, you’re at a distinct advantage. You have a better chance of preserving your nest egg, as that money isn’t already allocated toward an obligation. That can give you even more financial freedom.
Read the entire article featuring Stephen Barns on MarketWatch by clicking here.
There are plenty of great strategies for retirees to continue saving, and we’re here to help! Just give us a call today at 501.823.4637!
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Stephen Barns, AWMA®, AIF®
Financial Advisor
Prime Capital Investment Advisors, LLC
Stephen Barns is a financial advisor, educator, and subject matter expert who works with individuals, families, and employer groups to help them understand the complete picture of what approaching retirement looks like. He holds the Accredited Wealth Management AdvisorSM and Accredited Investment Fiduciary® professional designations, and he has been helping people retire for the last 15+ years. Learn more about Steven here.
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The views and opinions expressed here are those of Stephen Barns only and are not those of Prime Capital Investment Advisors or Private Client Services; they should not be interpreted as such.
Advisory products and services offered by Investment Adviser Representatives through Prime Capital Investment Advisors, LLC (“PCIA”), a federally registered investment adviser. PCIA: 6201 College Blvd., Suite#150, Overland Park, KS 66211. PCIA doing business as Prime Capital Wealth Management (“PCWM”) and Qualified Plan Advisors (“QPA”). Securities offered by Registered Representatives through Private Client Services, Member FINRA/SIPC. PCIA and Private Client Services are separate entities and are not affiliated.
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