Ready, set, retire with these financial tips

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AUSTIN (KXAN) — Before you can permanently clock out for work and unwind on a beach with a margarita in your hand, experts suggest first making sure your finances are ready for retirement.

As Baby Boomers draw closer to retiring, many of them are wondering if they’ll be able to live comfortably. Joining us in the KXAN studio to give tips on how to play retirement catch up, is Mickey Powell the founder of Powell Financial Partners.

Powell says the first thing you should do is write down your current and expected retirement budget. If you do have a possible shortfall in retirement, you have time to adjust and shift your plan by moving more money into retirement savings or pushing back your retirement date.

The second thing you should do is review your investment portfolio finding the right mix of growth and income. If you only have a few years left before you retire, Powell recommends moving investments towards more conservative choices; like bonds or treasuries.

Powell also says it is important to investigate your tax situation. You will be subject to taxes during retirement if you withdraw from your retirement savings in a 401(k) or traditional IRA. He says to avoid this, consider saving in a Roth vehicle or you can convert some of your pre-tax savings to a Roth 401(k) or Roth IRA.

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