SONOMA FINANCIAL PLAN
  • Home
  • Blog
  • Start the Conversation
  • 401K
  • Home
  • Blog
  • Start the Conversation
  • 401K

FINANCIAL JAZZ

Turn Your Retirement Savings into Income

3/8/2018

0 Comments

 
Picture
Many investors spend most of their lives saving for retirement but are unsure of how to turn the capital into actual income once their career comes to an end. Here are five ways to do it:
  1. 4% Withdrawal Rate – a traditional approach that allows an investor to withdraw 4% of their savings and increase that amount annually with inflation
  2. 7% Withdrawal Rate – considered a more “optimal” approach that helps an investor find a balance between having higher income and preserving their savings
  3. Income Annuity – an approach in which an investor purchases an income annuity that is guaranteed for the rest of their life by an insurance company
  4. Investment Income – an approach that avoids withdrawals and relies upon dividends and interest income
  5. Spending Safely – an approach in which an investor delays Social Security benefits to age 70, withdraws 3.5% of savings from age 65-70, and uses the IRS required minimum distribution tables to determine withdrawals starting at age 70
 
All of these methods have pros and cons, read this article to learn more. As you prepare for or take your first step into retirement, discuss your options with your advisor to help create a plan that works best for you. 

0 Comments



Leave a Reply.

    Author

    Write something about yourself. No need to be fancy, just an overview.

    Archives

    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    August 2017

    Categories

    All

    RSS Feed

Picture

​   Powered by Enso Wealth Management​ 

Disclosure: The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by Enso Wealth Management, to provide information on a topic that may be of interest. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Securities accounts are held through Charles Schwab, Member FINRA/SIPC.

ENSO Form ADV Part 2A
ENSO Form ADV Part 2B

© COPYRIGHT  ENSO WEALTH MANAGEMENT 2017. ALL RIGHTS RESERVED.