9 Retirement Moves to Make in May Now That Tax Season Is Behind You

If you've been putting off dealing with a lot of financial matters because it was tax season and you had enough money issues on your mind, well... tax season is now behind us. It's time to tackle some money matters -- ones that can make you much more financially secure, both now and in the future.

Check out some smart moves here. The more of them you act on, the more you may improve your financial health and future.

Image source: Getty Images.

1. First things first

It's hard to save and invest for your future if you're saddled with debt -- at least high-interest-rate debt such as that from credit cards. So work on getting out of that debt, and know that it's more possible than you might think to dig out from even major debt. It takes much discipline, but many people have succeeded at it.

Also, have a ready emergency fund, with enough money accessible to support you for at least three to six months. Unexpected job losses and costly health setbacks do happen, so be prepared, just in case.

2. Draft a solid retirement plan

Each of us needs a solid retirement plan. First take some time to see how much you spend on what, and then estimate how much you'll need to spend per year in retirement. Factor in inflation and retirement healthcare costs, too.

It's smart to aim to have multiple retirement income streams. These may include Social Security, dividend income, annuity income, rental income, pension income, withdrawals from retirement accounts, and other potential incomes.

3. Save aggressively

Be sure to be socking away meaningful sums -- and know that your earliest invested dollars are your most powerful, as they have the most time in which to grow for you. Here's what you might accomplish:

Data source: calculations by author via Investor.gov.

4. Make good use of tax-advantaged retirement accounts

Make good use of retirement accounts such as IRAs and 401(k)s. Each comes in two main varieties -- traditional and Roth. Traditional accounts give you an up-front tax break by reducing your taxable income by the amount of your contribution to your account, while Roth accounts instead give you tax-free withdrawals down the line.

Consider maxing out contributions to an IRA and contributing generously to a 401(k) if you can. Many employers offer matching funds for 401(k) accounts, so contribute at least enough to max out that match, as it's free money.

Look into Health Savings Accounts (HSAs), too, as they can help you pay for qualifying health-related expenses on a tax-free basis while also letting you save for retirement.

5. Invest effectively

As you invest money for your future, be sure to do so in effective ways, balancing risk and reward. Simple low-fee index funds are a fine choice for most people. These are some to consider:

• Vanguard S&P 500 ETF (NYSEMKT: VOO)
• Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD)
• Vanguard Total Stock Market ETF (NYSEMKT: VTI)
• Vanguard Total World Stock ETF (NYSEMKT: VT)

6. Have a smart Social Security plan

Each of us can start collecting Social Security benefits as early as age 62, or we can delay, up to age 70. Starting early means smaller benefit checks -- though you'll collect many more of them. Delaying will make your benefit checks bigger. For most people, the best strategy is to wait until age 70, to maximize your total benefits.

Not everyone can wait until age 70, though, as some simply need that income as soon as possible. And those who may not live to a ripe old age may be best off claiming early, too. Know, also, that there are multiple ways to increase your Social Security benefits.

7. Consider relocating

If it's looking like you won't have saved enough by retirement, you might consider delaying retirement by a few years -- and/or relocating. You might save a lot of money by selling your home and moving to a less costly region or simply by moving into a less costly home in your current region.

8. Test-drive your retirement plan

Once you have a retirement plan in place and you have an estimate of how much income you plan to live off in retirement, do a test-drive: See if you can live for a year on that sum now. This move might help you realize that you need to save much more -- or less.

9. Consult a financial advisor

Finally, don't be afraid to consult a financial advisor. Many will offer a free initial consultation, and when you pay for their services, that can be well worth it and can give you much peace of mind knowing that you have a good plan in place. Consider favoring fee-only advisors such as those you'll find through the National Association of Personal Financial Advisors or the Garrett Planning Network.

Think about all these savvy pre-retirement moves and act on as many as you can.

Selena Maranjian has positions in Schwab U.S. Dividend Equity ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.