During your working years, you know where your income is coming from.
But once you retire, you’ll have to know how much you can expect from different income sources - and know how to manage this income to help support a retirement that could last two or three decades.
Your IRA and 401(k) will be key income sources.
How much should you withdraw from these accounts each year?
You’ll want to pick a withdrawal rate based on various factors, such as your age, health, and other sources of income.
Next, consider Social Security.
You can start collecting benefits at 62, but your payments will be much bigger if you wait until your full retirement age, between 66 and 67.
You might also receive some earned income if you do some consulting or part-time work.
This money could help you delay taking Social Security, and you could put some of your earnings into an IRA.
Finally, you might consider investing in a fixed annuity, which can provide a lifetime income stream.
By learning how to maximize your income sources, you can help yourself achieve a comfortable - and more rewarding - retirement.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson and Hawes Dickerson. Members SIPC.
