One popular strategy for retirement is the three bucket strategy. You have one bucket for emergencies with another bucket for short term finances. The last bucket is reserved for funds you won’t access for more than a decade. Another strategy is the 4% systematic withdrawals method where you withdraw around 4% of your nest egg the first year of retirement. You then increase it slightly the following years. An annuity contract is another method to have a deal with insurance to send you monthly payments. There are a few more interesting methods that are worth researching.
Key Takeaways:
- The popular 4% rule relates to systematic withdrawals taken from retirement savings each year.
- Annuities often bring high fees, and they don’t always generate the returns you can get elsewhere.
- Working part-time during retirement and reducing your spending are good approaches.
“The bucket approach divides your retirement savings into three buckets based on when you’ll need to access the funds.”
Read more: https://www.fool.com/retirement/strategies/income/
Leave a Reply