If you’re retired or nearing retirement, you know how long you’ve been saving for your best years. Are you ready to manage your distributions well and budget correctly? If not, you may run out of money. Consider this tips when you’re making (or revising) your retirement plan so you don’t spend too much.
- Think about the three stages of retirement, and budget accordingly. We’re talking about early retirement (travel, hobbies, etc.), middle retirement (socializing, activities, relaxation), and late retirement (winding down, most days at home).
- Hammer out a plan for Social Security. You could aim to start collecting as soon as possible, so you can save your other sources of income for later in your retirement—or you can delay collecting so you have a higher monthly benefit, allowing Social Security to get you a more significant income later on.
- Plan for your required minimum distributions (RMDs). When you hit age 70 1/2, you will be required to withdrawal annually from your retirement accounts. Certain plans, like 401(k)s and 403(b)s allow you to delay withdrawals until you’re retired. For traditional IRAs though, you’ll need to withdrawal at age 70 1/2—regardless of retirement status.1
How’s your retirement distribution strategy? Could it use some help? We’re here for you. Feel free to call us and we can help create a distribution plan that fits your lifestyle needs.
The information within this article is for educational purposes only and does not constitute legal or tax advice. Customers should consult their legal and/or tax professional regarding their own unique situation. Insurance product features, benefits and guarantees are based upon the claims paying ability of the issuing insurance company.
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