One of the biggest concerns for retirees is how to prevent outliving their retirement savings. Fortunately, Social Security provides a reliable cushion as a baseline income source. Yahoo Finance offers sound strategies for maximizing nest egg investments like a 401(k) or IRA.
Rule One is to use the “Rule of Four.” In your first year, plan on withdrawing 4 percent of your investments. For example, if you have $500,000 in assets, that would mean taking $20,000. Then, in subsequent years, withdraw that amount increased by the inflation rate. That will leave ample money invested to generate more returns.
Another strategy is to determine a fixed amount needed and just stick with that. Review your annual investment returns and keep as much as possible in higher growth assets. Some retirees use a “bucket” approach to divide assets into different buckets with returns based on when you think you might need to access funds.
Of course, take into account possible tax effects and required minimum distributions. Because women generally live longer than men, they should determine how to stretch assets for a more extended time.
You Should Be Able to Stretch Your Income
Reliable and additional retirement income will help you live with less worry. Council of Seniors is totally committed to getting Congress to pass The SAVE Benefits Act. The annual Social Security cost-of-living adjustment (COLA) has been inadequate in recent years, and the amount of $581 was withheld from seniors. The passage of this bill will ensure this money is returned.
Please sign our petition right away to show your support for this important bill.
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