When you retire, which you can do as early as 59½, you have the privilege to start making withdrawals from your retirement accounts. The more accounts you have earning interest, the more it matters how you withdraw your money.
The sequence and the source of your withdrawals from all accounts will determine how long your money will last. Following an unplanned method could mean using your money up years before you die, but strategic planning could make it last your lifetime—and longer.
Your Goals Will Help Determine Investments
When you make your retirement plans, you may decide to move, travel, develop new hobbies, and other things that may be costly. These plans mean you will likely need more money early in retirement. The need for money may help determine some of your investment strategies and withdrawals.
Annuities
Annuities can be an excellent way to get a consistent source of income for a long time. Although the income will be regular, accessing more money from an annuity may be difficult. Annuities come in different forms—such as with fixed interest or adjustable rates based on the market.
