When you settle into retirement, you get to stop going into work, but the bills do not take a vacation. Having some type of retirement income is essential to keep up a certain lifestyle. Most people prepare for retirement by saving and investing early in life. This is discusses all the time, but what we don’t often talk about is how to roll it out come retirement. Certain accounts have restrictions to the amount that can be taken and how it’s taken. In order to prepare for taking a retirement salary, here are some things to know!
Individual Retirement Accounts, or IRAs, are one of the largest sources of retirement income. IRAs come with a few stipulations. The first is age. You have to be of retirement age before you can start withdrawing money. If you retire early, your strategy should be including other retirement accounts because the IRA will have to sit there, untouched until you become of retirement age.
With an IRA you can withdraw funds, continue to invest, or purchase annuities with. In all, IRAs are a great source of Retirement income, if you meet the parameters, you’ll be in good shape.
A part of working and paying taxes for the entirety of your life sets you up to receive Social Security benefits. The average monthly check is just about $1,300, which is a good bit of cash to be getting from one source. A word of advice in regards to Social Security – speaking with a financial advisor is imperative to make sure you understand how much you’ll still end up paying if any.
Systematic withdrawals are offered by almost three quarters of all retirement funds. You can even go as far as planning exactly how much you want delivered to you and when. Systematic withdrawals are also an important part of your retirement income. Some accounts take longer to mature, thus you should not touch lose accounts until the less regulated ones are used up.