In this week’s Mullooly Asset Management podcast Tom and Brendan discuss retirement withdrawals. When retirement withdrawals come up in conversation the number one question clients want to know is, “Will I outlive my money?”. It makes sense that people worry about this type of issue because nobody wants to run out of money in their retirement account while they are still alive. The fact of the matter is that most people just do not have enough money saved initially, and then end up taking out too much money every year.
Most people are trapped in the seemingly paradoxical situation of whether to take a fixed percentage for their retirement withdrawals or a fixed dollar amount. If you take a fixed percentage out of your account each year, the amount of money you have to live off of will become smaller because you will have less each year to deduct from. However if you take a fixed dollar amount for your retirement withdrawals, then you will be taking a larger percentage every year. This is because the amount you will take out remains the same in dollar amount, while the total of the account will be smaller than the previous year.
Tom will discuss how you can beat this paradox and make enough money to comfortably retire with in this podcast. Also, if the numbers are confusing you there will be a video to follow where you can visibly see the totals that are discussed.
None of the securities mentioned in this video or blog post are considered investment advice. Mullooly Asset Management also strongly urges our listeners and readers to talk with their investment adviser before making any decisions to buy or sell any investments. If you do not have an investment adviser do not hesitate to contact us at Mullooly Asset Management.
You can download this podcast about retirement withdrawals on iTunes for free!