The First Step Before Withdrawal

Five essential questions to ask yourself before you tap retirement savings.

A culmination of a lifetime of hard work, careful planning and diligent saving, retirement is expressed and experienced in countless ways, but the financial journey starts with one simple step: withdrawing money from retirement savings. Taking your first withdrawal is a crucial moment in your retirement and shouldn’t be taken lightly. In conjunction with a financial professional, you should ask yourself five key questions before you take that first step.

When should I begin withdrawing?

The question of when to begin withdrawals is one of the most crucial choices you can make. You may have a withdrawal date already planned, but sometimes life doesn’t cooperate with your plans. Taking withdrawals too early may increase your chances of having fewer resources as you get older. Don’t just rely on one withdrawal date. Make sure you and your financial professional have a contingency plan prepared.

Do I have a solid plan?

Taking market and tax considerations into account when withdrawing from your accounts is essential to keep a solid financial balance in retirement. Your financial professional probably knows which accounts you’ll withdraw from first, but do you? Has he or she shared the strategy for which accounts you’ll withdraw from and when? Is your spouse informed as well?

Am I ever really going to stop working?

Many people who retire after a long career don’t have adequate hobbies or activities to keep busy, become bored and return to work. Others don’t stop working at all, or they work a bit less. If you consider returning to work, make sure your financial professional is aware of your plans. Any extra income can make a difference in what accounts you withdraw from and when you do so.

How will my withdrawals interact with my lifestyle and leisure?

Are your withdrawals going to provide enough income to travel? And what about your other hobbies and plans? It’s important to make sure your withdrawals allow you to continue living the same lifestyle in retirement. If you don’t believe your income will be adequate to enjoy life, have you discussed your concern with your financial professional?

What about unexpected medical costs?

It’s no secret that the cost of health care in America has skyrocketed. Being prepared for increasing costs and the possibility of emergency care are two more key factors to consider before withdrawing from your nest egg. Health insurance is often not enough, and long-term care insurance should be considered as an added way to protect yourself from financial loss relating to health care. These are just five basic questions to ask yourself and to discuss with your financial professional. After all, the sooner you prepare for retirement, the sooner you can decide what you want to do for the rest of your life. Written by Securities America

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Navigation Financial Group is not a CPA Firm. Advisor Representatives are Registered Representatives of and offer securities through Securities America, Inc., member FINRA/SIPC. Planning and Advisory Services available through Securities America Advisors, Inc. $ymbil is offered by Ladenburg Thalmann Asset Management, Inc. (LTAM). Navigation Financial Group and its affiliates are independent of Securities America and LTAM. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed. Not FDIC Insured, No Bank Guarantees, May Lose Value. Not a Deposit and Not Insured by any Government Agency. As of January 1, 2020, the California Consumer Privacy Act (CCPA) suggests the following link as an extra measure to safeguard your data: Do not sell my personal inforamation.

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