A qualified longevity annuity contract, or “QLAC”, is a retirement withdrawal tool. It can be a helpful part of your retirement withdrawal strategy. A QLAC allows you to use the money in a qualified retirement plan to purchase a deferred income annuity without running afoul of required minimum distribution rules. In this article I’ll explain …
Want to know how long your money will last with systematic withdrawals? Use the retirement withdrawal calculator to give you a good reference point. It’s based on the 4% rule, but with updated data. Simply input your savings in the portfolio balance, your withdrawal rate as a percentage (for 4% just type in 4), and …
Knowing the difference between your marginal vs effective tax rate is an important element of tax planning. When you understand your tax rate, you’ll be able to incorporate that into an integrated retirement withdrawal plan. The ability to properly manage your tax bill can save you thousands of dollars. It can also dramatically improve your …
The idea for this article comes from a question submitted by a reader. I’ve copied the question below, and omitted the names to protect the innocent. (No animals were harmed in the creation of this article.) The question: Let me start by saying, I totally enjoy reading your articles/post! Do you have any information on …
Living happily in retirement means crafting a spending plan to support your lifestyle. To do that, you’ll need to think about how you plan to live in retirement. Not just now, but for the long term too. That could involve a plan to spend more early in your retirement.
One withdrawal strategy that you could use for your retirement income is to withdraw a fixed percentage of your portfolio each year. Because of its simplicity this approach may be appealing to you. It is also very easy to implement.
What are the risks of relying on dividends for retirement income? Like most things used in moderation there isn’t anything wrong with dividends, or the stocks that pay them. In fact, higher-dividend paying stocks are usually older, established, and strong companies. They can be good components of retirement income plans and help provide some diversification …
How much can you spend in retirement without the risk of running out of money? That is arguably the key consideration of your retirement income plan. This requires you to strike a balance between current spending and future account value to support that spending later. In simple language, this means that you are deciding how …
