Money
1. Turning Assets Into Income:
Past advice recommends withdrawing 4% of you assets the first year you retire, adjust annually for inflation, which will give you a 90% chance of your money lasting 30 years, but that assumes 8% returns on stocks, 5% for bonds.
Given today’s low interest rates and uneven stock performance, some are advise starting out at 2% or 3% assets withdrawals.
2. Lock In Minimum
Put enough in an annuity so that the income it produces, combined with Social Security, covers your basic living expenses. Let the rest of your portfolio keep growing.
3. Stay Nimble
When markets do well, you could take out 5% or 6%. In down times for stocks, dial back
4. Minimize Taxes
The conventional wisdom: Withdraw from taxable investments first and let retirement-plan money grow tax-deferred. Save Roth IRA’s for last since you never have to take withdrawals
However if your 401K withdrawals push you into a high tax bracket, just take enough out of your 401K to stay in the lower bracket and take the rest out of your Roth IRA.
5. See More of the World:
Housing and health care is cheaper in many other countries, although Medicare doesn’t cover you outside the USA.
Go to InternationalLiving.com for rates on popular destinations and the cost of living overseas.
6. Don’t Ignore Rising Health Costs:
Long-term-care insurance is expensive about $3,000 a year for a couple in their fifties today.
However, get long-term-care insurance as a safety net if you have a history of family diseases like Alzheimer’s, dementia, Parkinson’s or you have assess of $250,000 to 1.5 million – less and the price is too high, more and you can self-fund.
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