Your first move is to create a retirement income strategy. As part of this strategy, you’ll need to ask yourself a few key questions.
First, how much of your overall retirement income will come from your investment portfolio, including your IRA and 401(k)? These accounts are important, but you don’t want to rely exclusively on them, as their value will fluctuate.
Second, how much can you afford to withdraw from your portfolio each year? Since this withdrawal rate is a key factor in how long your money will last, you’ll want to make sure you don’t take out too much, especially during the early years of your retirement.
And third, how many sources of income can you count on? You’ll have Social Security, but you may require another income stream.
Answering these questions can help you create a strategy to ensure your retirement income will last for as long as you need it.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.