How Do You Create a Retirement “Paycheck?”

Sep 23

There’s one question we hear most often from those nearing retirement, is some variation on this:

“How do I get my money out of my retirement plan and into my checking account?”

The question is not as simple as it appears – that’s why people ask it. They’re not asking about the mechanics of a 401(k) withdrawal. They want to understand the switch from saving to spending, and it’s an entire cascade of questions covering how to decumulate assets in retirement. These include:

• When should I take social security?
• How can I ensure I’ll have enough income for my needs?
• How can I invest for growth without taking too much risk?
• What about taxes?

There are a lot of decisions to make and creating a financial plan for your retirement years means taking a comprehensive look at how those decisions affect the likely path of your retirement so that you can plan for things down the road.

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