That’s not to say Social Security income is a replacement for bonds in a retirement portfolio. Rather, Social Security should give you more confidence to tilt your asset allocation in your retirement portfolio toward more stocks and other more volatile assets. Keeping those faster-growing assets in a Roth account will keep them tax-free when you sell and withdraw the funds for spending.
Just part of a bigger picture
A Roth IRA should be just part of a bigger picture in your retirement asset location strategy. If you’re a good saver, it’s very likely you’ll end up with assets in Roth accounts, tax-deferred retirement accounts, and regular brokerage accounts in retirement. But getting as much of your money as possible into a Roth account before taking Social Security benefits will allow you to maximize your retirement income.
The $16,728 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,728 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.