Before you fill up your calendar with all sorts of travel, social and volunteer activities, take the time to figure out when and how you’ll tap into your hard-earned money to support yourself. Knowing how you want to receive income in retirement and setting up your plan will give you unencumbered peace of mind. You have choices that include:
- Receiving monthly income through an annuity
- Managing your money and making periodic withdrawals
- Receiving income from an annuity plus some investments
What to include in your plan:
- How you’ll manage all of your financial resources like Social Security income, pensions and savings.
- Know your life expectancy and design a plan that won’t draw down your savings too fast or too slow. You want your money to last at least as long as you do! Plotting life expectancy is not an exact science but there are expert estimates available. And you may want to consider family history in your calculation.
- Keep easily accessible funds available for unexpected life events.
- Try to keep your income growing with inflation by investing for income and security.
- Adjust your living standards if it’s clear that you won’t have enough money to meet your lifetime expenses.
- Don’t forget – your home and other fixed assets can be tapped to meet your living needs.
- Take your required minimum distributions after age 70 ½ and stay informed about changes in tax issues that impact retirees.
- Keep track of your investments or work with a financial advisor to make sure your financial goals are met and maintained.
- Stay educated so that you are well enough informed and can understand the advice and recommendations of your advisor/fiduciary.