It’s almost time to start using your retirement funds but figuring out how to draw from your retirement account isn’t always as straightforward as you might expect, especially if you have multiple sources of income.
At the end of the day, most retirees want two key things:
- Enough income each month to live comfortably.
- The ability to have their money last throughout retirement.
Thankfully, there are several thoughtful approaches that can help you accomplish both.
Before you solidify your withdrawal strategy, there are a couple key decisions to make, including —
- The amount of money you will need to withdraw each month to cover your typical expenses.
- How you should invest your money to achieve some growth while preserving your existing balance.
These decisions become more complicated if you have additional retirement accounts, such as other IRAs or 401(k)s, alongside your Eder Retirement Plan balance. And once you reach a certain age (currently 73), you will need to take money out via Required Minimum Distributions (RMDs), which ensure that your tax-deferred retirement savings eventually get taxed.
Start with Social Security
As you think about how to best use your retirement account balances, it's wise to make sure you receive the maximum Social Security benefit available to you. Once you establish what your Social Security benefit will be, you can then assess how best to take your retirement funds.
Explore more with tips about Crafting your personalized withdrawal strategy
Eder Financial offers complimentary retirement planning consultations to members. To schedule a consultation, email retirement@eder.org. If you want to speak with a licensed financial advisor to get investment advice for the funds in your portfolio, Edelman Financial Engines, an Eder partner organization, can help. Call 833-400-1070. EFE financial advisors can answer questions about your specific retirement investment strategy.
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