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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

November/December 2022

Easing into Retirement

Happy senior greenhouse worker putting flowers in a crate while preparing them for distribution in plant nursery.

If you’re looking forward to more free time but aren’t quite ready to completely retire, semi-retirement might be the answer. While not every company offers this option, you may be able to create a plan for yourself that your employer will approve.


Benefits of Semi-retirement
Semi-retirement is becoming increasingly common as employers take advantage of the knowledge and expertise offered by seasoned workers. Meanwhile, employees may be able to delay withdrawing savings from retirement accounts, maintain relationships with coworkers, and benefit from the mental stimulation of the workplace.


Start with a Plan
Before you decide to pursue semi-retirement, come up with a realistic strategy for living on less money. Review your spending compared with your projected income to determine if you’ll have sufficient funds for living expenses. Cutting back on discretionary spending may improve your financial outlook.


Let it Grow
For every year beyond your full retirement age (FRA), up to age 70, that you wait to take Social Security benefits, your benefit amount will increase. Working part-time may allow you to delay applying for Social Security benefits, thus increasing the amount of your monthly payments over your lifetime. When you take benefits before your FRA and you’re still working, your benefit will be reduced if you earn more than the exemption amount ($19,560 in 2022).


Down with Debt
Before you consider working part-time, eliminate as much debt as you can. High-interest credit card debt is detrimental to your financial well-being, so make paying it off a priority. Also consider paying off your mortgage, if possible.


Plan for Health Care Costs
If you’re still employed and covered under an employer’s health insurance plan, you may be able to wait to start Medicare Part B benefits. If you’re self-employed, Medicare will typically become your primary health insurance, although you’ll probably want to purchase a supplemental policy to cover costs that Medicare doesn’t. Some supplemental plans offer dental, vision, and prescription drug coverage for an additional charge. Be certain you factor in health care costs when determining whether part-time employment is feasible.


Before you make any decision about semi-retirement, discuss your situation with your financial professional.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
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