7. Withdrawals—the biggest trap!
Believe it or not, but this is probably the No.1 challenge for retirement. Why? Because nobody knows how much you can withdraw to be safe. Financial experts recommend following a simple rule: withdraw only 4% of your account balance. But if you’re planning to travel a lot or relocate to another state, maybe it’s better to reconsider doing this.
How can you overcome this issue? First and foremost, thoroughly research your finances to determine how much you can withdraw without causing problems. You can also follow the tables for required minimum distributions offered by the IRS to help you decide how much you can withdraw from all your retirement accounts.
Bottom line
Since all these challenges seem like a burden for many retirees, a lot of them decide to do nothing instead of making the wrong decision. Many of us had to cut back on expenses and adjust our lifestyles as a result of inflation. But one thing is clear: You can’t make it without a stable plan! If you understand how all these challenges can affect your retirement, make sure you have the money you need to create the lifestyle you deserve after working more than 30 years. Because, guess what? You have the right to be happy!
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