Do These 3 Things Before Withdrawing From Your Retirement Savings
If you've amassed a solid nest egg in time for retirement, congratulations -- you've done your part to help ensure that you'll have enough money to live comfortably. But if you're now retired and are gearing up to start taking withdrawals from your 401(k) or IRA, you shouldn't just do so blindly. Rather, you should make sure to take these important steps first.
You want the money in your retirement plan to last throughout your senior years, so to that end, you'll need to figure out how much you can afford to remove each year to avoid depleting your nest egg prematurely. Many financial experts swear by the 4% rule, which has you start off by removing 4% of your savings balance your first year of retirement and then adjusting subsequent withdrawals for inflation. But that doesn't mean a 4% withdrawal rate is right for you.
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Source Fool.com
