RETIREMENT
As you near retirement, you might look back and think that saving
for this next stage of life was the easy part. During your working years,
the big decisions were how much to save and where to invest. But now it’s
time to switch gears. Instead of accumulating assets, you must figure out
how to turn your nest egg into an income stream to last a lifetime.
“The idea of withdrawing from their retirement portfolio is really pain-
ful for a lot of people. They’re savers,” says John Bohnsack, a certified
financial planner in College Station, Texas.
Here are steps that can help you generate the retirement income you
will need. Along the way, you’ll need to answer some questions: Will you
get a part-time job in retirement that brings in some income? When
should you claim Social Security or start taking your pension, if you have
one? And how will you address the big uncertainties of health care and
long-term care? Taxes will get more complicated because, unlike previous
generations, most retirees today have the bulk of their retirement money
tied up in tax-deferred 401(k)s and traditional IRAs. How do you with-
draw from these accounts safely without triggering a big tax bill?How to live well without running out of money.
BY EILEEN AMBROSE and SANDRA BLOCK
HARVEST
THE FRUITS
OF YOUR
SAVINGS
50 KIPLINGER’S PERSONAL FINANCE^ 10/2019 PHOTO-ILLUSTRATIONS BY C.J. BURTON