Withdrawal Sequencing Strategies: Excerpt from The Smartest Money Book You’ll Ever Read Equifax Personal Finance Blogger Dan Solin is out with a new book, “The Smartest Money Book You’ll Ever Read,” in which he answers some of your top retirement and retirement strategy questions. Most people have their retirement funds…
Most people have their retirement funds in various accounts—401(k) plans, IRAs, annuities, taxable accounts, and pensions. The sequence in which you withdraw funds from accounts can affect how long your money lasts, although sometimes your choices are limited. For example, you must start withdrawals from a traditional IRA at age 70 ½.
Here is the basic order in which you should tap your accounts:
Use these rules of thumb for planning your withdrawal strategy, but modify them for your situation to maximize the life of your money.
What’s the point?
When you retire, you need a plan for withdrawals so your money will last you and your spouse the rest of your lives.
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