We have to learn how to find and use what we already have. Living longer means that we have to eke out our pension savings for longer as well. Here are some tips to make your savings last in retirement.
Your retirement is about much more than just saving money. It’s about making informed decisions that help you “draw down” your assets in the most efficient and cost effective way.
Here are four keys that could help you preserve your savings so you can get the most out of the process.
The Trick of the Draw
You’ve saved, so now what?
Do you know what distribution and income sources are?
When you retire, while it’s important to invest to preserve your capital, it’s also extremely important to have a strategy that considers the order (and timing) of the investments you draw upon to pay your expenses.
It may seem like a minor concern, but these choices will have a big impact on not only how you are taxed, but how long your money lasts.
A well thought out plan is not only essential, it’s creative, it’s ongoing, and it needs to be continually updated to account for changes to tax laws, inconsistent account balances, stock market gyrations, and other concerns.
The key is to avoid the belief that all your money should be treated the same.