I am in the late fifties of the last century with a decent nest egg – how can I withdraw money in retirement without breaking?

The money running in retirement is a great fear for many people. In reality, research From Allianz Life Insurance, I found that 63 % of Americans feel more anxious than shrinkage very soon than they die.

It is understood that you are concerned about this because when you retire, it is likely to rely on savings and social security, which, on average, is replaced only 40 % of the pre -retirement income. If your savings run out, you will be in a problem, and do not want to face this fate.

Anxiety is more accurate for people in the late fifties and early sixties, who enter the final extension for their years.

The good news is, you should not. Regardless of the humility of your nest egg, and regardless of how close you retire, you can adopt a smart strategy to withdraw your money in a way that makes it continue.

Here’s what you need to know to achieve this.

Choosing a safe cloud rate is the most important thing you can do to finally make your money. This means that you limit the amount you get every year to make sure you leave enough in your account to continue earning the returns and avoid dropping your main balance very quickly.

There are many different ways that you can do.

The most conservative option is to live alone. If you have a million dollars and profit 3 % of the interest, you live on the annual return of $ 30,000 and do not touch the actual nest egg.

The problem is that you do not necessarily gain a consistent or large amount of interest every year because investment performance fluctuates. This is in addition to the clear truth that if you are not planning to reduce the balance at all, you need to collect a very large balance to produce an annual amount that you can live on: get one million dollars upon retirement is easier than doing it.

We have not yet encouraged inflation. Hence, the second option, what is usually called a 4 % base, which your money should last at least 30 years if you have taken out only 4 % in the first year of retirement and increase the amount to keep up with inflation.