Carefully Reinvesting In Retirement

 

Although I am retired and no longer bringing in a full time income that doesn’t mean I don’t want my money to work as hard for me as I worked to get it in the first place.  One of the tools I used to grow my retirement accounts it to safely reinvest a large portion of my money in a high interest yielding IRA CD that guarantees me a 5% interest return over a twelve month period.  At the end of the twelve months I take out the profit I have made and put it into my savings account.  Then I roll the principle amount back into another high yield IRA CD and let it go another year.

 

There is no need to just let it sit there while I deplete my funds

Since I retired I have yet to touch any of the proceeds from my investments.  Instead I allow them to sit in this savings account, which is completely separate of my regular checking and savings accounts.  In fact it is at a completely different financial institution, also a credit union because I choose to not keep all my eggs in one basket.  Right now I consider this savings account as another emergency fund, not to be touched unless absolutely necessary.

 

Right now no penalty short term IRA CDs have the highest rate of return

At the end of the year I will look at my overall earnings from my part time job and then move some of my retirement funds I have in an IRA over to that same savings account and only enough that I won’t have to pay any taxes on that particular distribution plus my CD earnings.  I will continue to carefully siphon off just enough each year to keep it under the annual amount I can make before I owe any taxes.  It is a process, but in the end it will definitely be worth it.

 

I can easily grow what I already have without risk

Once that savings account reaches a certain amount I may, as long as I keep working my part time job, go ahead and reinvest it into another high yield IRA CD and allow my earnings to earn even more.  It will also give me a tax break when I do file my taxes that particular year.  Or, it might be used to put a new roof on my house.  Or something else, it is hard to say, but at least I have it and I have choices as far as how I want to use it.  Even better, I can continue to grow my hard earned cash, expand my wealth and have greater peace of mind as I age and head on into the future.  Retirement doesn’t mean we have to stop earning.