Retirement planning is an important part of managing your finances to ensure comfort and a high quality of living after you have stopped working. In addition to saving for your retirement, you’ll also need to plan how your retirement savings will be distributed to you in the future. Smart distribution planning offers you the maximum benefits of your savings for a long and enjoyable retirement.
Determine Your Desired Lifestyle
Distribution planning hinges on type of lifestyle you want to maintain throughout your retirement years. Proper distribution planning will ensure that you receive enough from all of your retirement resources to sustain the quality of life you want. Whether you plan to move into a smaller house, travel the world, or continue your favorite hobby, all of these factors play a role in the amount you’ll need to “earn” each year through the distribution of your retirement savings.
Understand Distribution Requirements
Many retirement savings plans have certain requirements, such as penalties or taxes that apply if you begin withdrawing from your retirement accounts prior to a certain age. Understanding the different requirements that apply to each of your retirement vehicles can help you better plan the type of distribution plan you want to pursue. While delaying the distribution of certain accounts even after the allotted time period can be beneficial, some accounts also require a minimum distribution amount each year once you reach a certain age.
Begin Planning Early
As with other retirement planning, creating your ideal distribution plan early is beneficial. The sooner you develop a strategy for the distribution of your retirement funds, the more time you will have to tailor this strategy to your changing needs and desires. Having a plan in place for retirement distribution will help to take the stress and confusion out of the retirement process.
Your financial planner at Financial Directions, LLC is here to help you develop the ideal retirement and distribution plan for your needs. Check out our online blog for additional financial planning tips and information, or call (520) 408-7777 to reach us today.
