Funding your Retirement Income
- August 5, 2019
During your working years, you have been encouraged to invest in your future. By allotting savings to accounts like 401(k)s you have created a sense of financial security for you and your family. Now it is time to convert those savings into income that will fund your retirement.
Below are some items to consider as you go through this process.
Taking out too much or too little at a given time can impact the longevity of your savings and affect your lifestyle in retirement. By being proactive in your planning and considering different withdrawal options you can budget better for the future.
Think about which accounts are taxable versus tax free. Also consider if you plan on leaving any assets to beneficiaries. A financial advisor can help you think through the future financial impacts of these complicated decisions.
For example Required Minimum Distributions (RMDs) from certain retirement accounts require individuals to withdraw money from their tax-deferred accounts whether or not there is an immediate financial need. Meeting these requirements is important in order to avoid a penalty tax. Different financial accounts may have different requirements.
Whether you withdraw a lump sum or have payments issued over a period of time, the payment amounts can be fixed and may not guarantee lifetime income. They may also be subject to income taxes. Any payment guarantees are based on the claims paying ability of the insurance company.
Planning for your retirement can be an overwhelming feat during what can be the most rewarding time in your life. Reach out to an Oppenheimer Financial Advisor to discuss your options and help convert your hard earned savings into retirement income.