Consider our two-step plan—which keep taxes in mind—to help make the transition.
If you’re like many people, you reach retirement with a mix of investments and accounts. After all, there are many tax-advantaged ways to tuck money away for retirement, such as a 401(k) or 403(b), a traditional or Roth IRA, or a deferred annuity.
So how do you transition what you’ve saved into an income-generating retirement portfolio that has the potential to last as long as you do?
Before you start, you’ll need a budget to estimate your income needs—and wants—in retirement. Once you have an estimate, you can then begin to identify income sources to cover both essential (needs) and discretionary (wants) expenses.