Achieving Retirement Gold: Tools and tips for City of Los Angeles retirees
Congratulations! Whether you’re just a few years from retirement, or you’ve already crossed the finish line, reaching retirement is a significant milestone that marks the start of a new adventure. But, did you know that the average retirement in the U.S. lasts over 20 years (Department of Labor, 2023)? With retirement stretching further than ever before, having a winning strategy in place is essential to ensure sure your financial game plan can go the distance.
Here are some actionable tips to help you keep winning in retirement, along with powerful resources offered by the City of Los Angeles Deferred Compensation Plan (DCP) to guide you every step of the way.
1. Keep pace with your retirement income
Just as athletes manage their stamina, it’s crucial to manage your retirement income wisely to ensure it lasts. One of the key ways to keep your finances in peak condition is by staying on top of your Required Minimum Distributions (RMDs). These mandatory withdrawals from your DCP account begin at age 73, and planning for them is essential to avoid penalties.
DCP Key to Success: First, get familiar with RMD requirements on LA457.com/rmd-faqs. For those turning age 73 or older, you’re able to initiate RMDs online by logging in to LA457.com. There, you will have access to the amount you are required to withdraw, as well as the type of withdrawal you prefer (one-time or recurring). This is a great resource to help you determine how much you need to withdraw and when.
2. Rollovers: Stay in the game
A well-trained athlete doesn’t switch to a new sport without considering how it fits into their overall game plan. Similarly, when considering rolling over your assets from a previous employer's plan, think strategically about how it fits into your retirement goals. Consolidating assets into the DCP may give you the benefit of lower fees and continued growth potential.
DCP Key to Success: Visit LA457.com/rollovers for important information about how to initiate a rollover into the DCP and who to contact if you have questions. Pro tip: Before initiating a rollover, consult with a financial or tax professional.
3. Diversify and stay agile with your investments
Much like an athlete who adjusts their training to stay competitive, it's essential to periodically review your investments to ensure they still align with your evolving retirement goals. As you settle into retirement, your risk tolerance might shift, and it’s important to make sure your portfolio reflects your current needs, balancing growth with stability.
DCP Key to Success: Visit LA457.com/investment-options to review the various funds and risk-based portfolios available in the DCP. If your DCP investment allocation needs a refresh, Log in to LA457.com and navigate to the Investments & Research section where you can adjust your investment choices to better align with your goals and risk tolerance.
4. Maintain balance between your health and wealth
Every successful competitor knows that success isn’t just about physical strength—it’s about balance, endurance, and mental focus. The same is true for retirees. To fully enjoy your retirement years, maintaining your health is just as important as managing your wealth. This means making time for physical activity, mental stimulation, and nurturing relationships.
DCP Key to Success: Upon logging in to LA457.com, you have access to a variety of financial wellness resources that can help you gauge your overall financial health and educational resources that can help you improve. By pairing this with healthy lifestyle habits, you can ensure that both your financial and physical well-being are in top form, helping you stay balanced throughout your retirement.
5. Consult with your “Coaches”
Even the best athletes have coaches. In retirement, it’s equally important to have guidance to ensure you stay on course. The DCP’s Local Retirement Counselors is like your own personal team of coaches, ready to assist with everything from fine-tuning your withdrawal strategy to navigating investment options.
DCP Key to Success: Take advantage of personalized counseling sessions with your Local Retirement Counselors. They’re able to offer one-on-one support with your DCP account as you navigate your golden years. To schedule an appointment, visit LA457.com/contact-us.
6. Celebrate your wins
Finally, don’t forget to celebrate your victories. Whether it’s traveling, taking up a new hobby, or spending time with loved ones, now is the time to enjoy the fruits of your labor. Retirement is your victory lap—a time to live the life you’ve worked hard for. With the right financial strategies and the support of the DCP, you can continue to excel in this exciting new chapter.
Get started today by visiting LA457.com, and make sure you’re utilizing all the tools available to live your best retirement!
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