I am getting ready to retire and I would like to know how most people withdraw from their retirement accounts. Do you take out each month or quarterly or yearly. Example: 2000.00 a month, or 6000.00 a quarter or 24000.00 a year. Maybe just as you need it.
Congrats on the upcoming retirement. I’m not there yet, so I can only speculate. I’ll have a traditional pension and a couple of retirement accounts. In an ideal world, I’ll use the pension for regular monthly expenses and only withdraw from the retirement accounts as needed–if needed–until regular distributions are required.
Sounds like a good plan. I only have SS, and IRA’s. I just wondered if anyone tries to time the market.
People who do almost always fail.
Right. My buddy just as a certain amount set up to be direct deposited each month, he doesn’t worry about the market. Stress free. I’m wired to be a worry wort. Always thinking worse case scenario.
Assuming a traditional IRA you could use social security and supplement from the IRA for your monthly expenses, for example if social security is $2,000 a month and normal monthly expenses are $3,500 you can withdraw$1,500 a month from the IRA.
You can withdraw more when you need it for an emergency, vacation, etc. You’ll want to talk to a financial advisor or tax professional for your situation.
I don’t plan to touch my traditional IRA until RMD kicks in. I’ve got a few more years before that happens. Between a small pension, SS for both of us and a little part time work we both do, haven’t needed to withdraw. About 1/3 of mine is Roth, the balance traditional. I like the sound of the dollar cost averaging in reverse plan.
I think that would depend on your ongoing money needs.
We’re taking RMDs from traditional IRAs. We pretty much live on our S/S, a small pension and post-tax investments, and use RMDs for QCDs and income tax withholding, transferring the rest to our post-tax investments. As a result, the timing of withdrawals isn’t important to us so long as we take the required amounts by year end. Since the IRS deems withheld taxes to have occurred equally over the year, the timing of withholding isn’t critical either.
We try to go into each year with enough cash in our IRAs to take the following year’s RMD without having to resort to selling investments in a down market. So far, that’s worked out.
I also do not try to time anything. Got an IRA that is too big depending on how you look at it. Still working (as of today) and have a couple of annuities paying plus socialist money. Got a new bride 14 mo ago but my plan is holding: That is:
Give ALL the RMD away as QCD. If needed, I can always use some of it and pay the tax on it, but giving it is a win-win if I don’t need it. Frugal late wife would roll over in her grave. New bride is with me 100%.