Strategies to Drawing Down Your Retirement Savings and Investments
From the time you begin working you read and hear about the importance of saving and investing for your eventual retirement. But how do you create a plan for spending it once you reach retirement?
With a current average life expectancy of 77 and an average retirement age of 62 most retirees will have at least 15 years during which they will need to draw a post-work income. If you’re considering retiring in your 60s you could easily live another 20-30 years. You will need to have enough financial resources to live on and not risk outliving the money you’ve invested for retirement. They key is accurately estimating your needs, spending conservatively, and maintaining enough principal (savings) to continue generating interest to partly live off and partly continue reinvesting. Let’s look at how to create a plan that works for you.