Jason Kulpa Discusses How to Preserve and Grow Your Net Worth in Retirement

 While one thing to look forward to in retirement is a reduced number of expenses, that does not mean you should take on new obligations or suddenly splurge. Saving for retirement is only half the battle. If you want your money to last as long as you do, you need a strategy to protect and grow your wealth.

 Jason Kulpa, net worth expert and experienced serial entrepreneur,shares things retirees can do to preserve their wealth and their spending power.


Be Smart in Budgeting and Planning

Many retirees enjoy the benefits of having a house paid off, children are grown and out on their own, and school loans are a thing of the past. As income may start to dwindle, preparing a budget and creating a plan can ensure that overall expenses do not outweigh money coming in. It does not mean that you can’t buy that boat or RV, it simply means that large purchases need to be calculated and planned for.

Avoid Additional Debt

Borrowing in a time of reduced income can impact your savings a lot quicker than one might think. While it may be tempting to buy a fancy car, a mountain home, or beach retreat, those items should be calculated into the budget as discussed above. Taking out a loan will add interest payments and will quickly increase total expenses. Instead, carve those desired items out with the budget and use cash when possible.

Downsize

You may learn in retirement that you no longer need a house with a big backyard or multiple bedrooms. Selling your house and moving into a small condo or apartment can reduce expenses as well as open up your capital to increasing market investments and cash flow. Selling personal belongings such as additional cars or furniture can help increase your net worth as you only keep the material things that you need or have sentimental value.

Use Tax Strategies

During your accumulation years, you may have split your savings for retirement between traditional and Roth IRAs along with a 401(k) to take advantage of tax benefits. Once you are officially retired, you can use other vehicles to try to reduce your tax burden as much as possible. Some of these strategies include claiming as many deductions as you can, investing in tax-free municipal bonds, and selling off long-term capital gains instead of short-term.

Don’t Spend Principal

A concept widely encouraged by financial planners is to set yourself up to enjoy retirement solely off of the capital gains and interest accrued by your investments and savings. By accumulating enough savings in your younger years, the amount amassed ideally will generate income of its own through interest, dividends, and capital gains. By living off that amount, you won’t have to tap into your savings unless absolutely necessary.

Delay Social Security as Long as Possible

While the Social Security Administration allows for individuals to begin collecting their benefits at the age of 62 if at all possible, try waiting until full retirement age (67) to begin collecting benefits. Filing early reduces the number of benefits you can receive and results in lower monthly payments. 

Continue Investing

One common misunderstanding is that when you reach retirement, you should pull all of your investments out of the stock market. While markets can be volatile, selecting the right investments as a portion of your savings can help continue to pay dividends and bring in interest to help grow your funds and preserve as you age.

About Jason Kulpa

Jason Kulpa is a net worth expert and serial entrepreneur. Mr. Kulpa is the Founder and former CEO of UE.co, San Diego's Fastest Growing Business multi-year award winner, and a Certified Great Place to Work multi-year winner. Under Mr. Kulpa's leadership, in 2018, his teams volunteered at over 24 events and worked side-by-side to improve the San Diego community. They hosted a gala dinner benefiting individuals with autism, cheered on Special Olympic athletes as they broke their records on the track, and brought school supplies and cold-weather gear to students impacted by homelessness.
 
 
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