Your income determines your level of financial comfort in retirement more than any other factor, according to Mike Moffitt, and the Cornerstone Financial Group investment adviser said some mid-life financial moves may help to boost it.

“One important move is to max out retirement accounts,” Moffitt said in a press release, adding yearly contributions of $5,500 to an Independent Retirement Account at age 45 will grow to $214,460 by age 65 based on a 6 percent annual return. “At an 8 percent annual return, that becomes $271,826, and this does not even take catch-up contributions into account.”

Retirement can also be delayed, according to Moffitt.

“At an 8 percent annual return, annual investments of $10,000 in the typical tax-deferred employee retirement plan will grow to $35,061 in just three years, and $63,359 in five years,” Moffitt said. “You can also strategize when to claim Social Security and transform non-earning assets, such as your home, collectibles and vehicles, into income-producing assets.”

Moffitt said downsizing for those who consider themselves “house rich and cash poor,” could assist in investments.  

“$300,000 in freed home equity invested at a 7 percent yearly return could produce $21,000 in annual income,” Moffit said. “Some retirees arrange sale-lease back agreements with their adult children.”

That can be accomplished by selling a home to one's kids and then renting it back, according to the financial representative.

“The retirees stay in their home and get a little more cash to spend, while the younger, higher-earning generation makes the most of homeowner tax breaks,” Moffitt said.

Moffitt noted the hypothetical examples are not typical of all situations and results could differ, especially since the theoretical rates of return do not reflect investment deduction fees.

For more information on retirement investments, contact Moffitt at 641-782-5577 or email mikem@cfgiowa.com.