I just retired. Whats the best way to make my savings last?
Be sure to take into consideration your total savings – IRAs, former employer-sponsored retirement plans, Social Security, CDs, and other savings vehicles – and then think about how much you plan on spending throughout your retirement. As you know, more people are living longer, healthier, and more productive lives. In fact, if you retire at age 65, you may spend more than 20 years in retirement. Generally, if you withdraw no more than 6% of your savings a year, you’ll be far less likely to run out of money in retirement than if you take money out at a faster rate. The following chart shows the impact that various rates of withdrawal could have on a retirement portfolio of 60% stocks, 30% bonds, and 10% cash as represented by the S&P 500® Index, U.S. Intermediate-Term Government Bonds, and 30-Day T-Bills.
