distribution strategy in retirement
How do you know your withdrawal rate in retirement is sustainable?
general rule of thumb for sustainable income throughout retirement is 4%
When stocks drop, do you usually buy more, sell, or hold steady?
Buy/Hold
How much monthly income will you need once you stop working?
general rule of thumb is 80% of current income before retirement
How are you currently contributing to your investment accounts - large lump sums or systematically?
invest systematically (dollar cost averaging)
How do you decide the right mix of asset classes (equities, bonds, alternatives) for your goals?
risk tolerance/liquidity needs
How much cash do you like to keep as a cushion in retirement?
general rule of thumb is at least 1-3 years of cash flow
What order of accounts do you plan to draw from in retirement?
1 - taxable
2 - tax deferred
3 - tax free
How often do you review or adjust your investments?
general rule of thumb
- review at least annual
- adjust as needed
How do you plan to manage Required Minimum Distributions (RMDs) once they begin?
take them early vs late in the year
early: good if you need (cash flow) for expenses
late: keeps money invested longer and gives you predictable (tax withholding)