No matter where you are in your career, chances are you’ve thought about retirement. Even if retirement is many years away for you, it’s important to start saving now so that you can enjoy your time once your career is over. Every individual will have unique needs when it comes to retirement savings, which means you’ll also have a unique strategy for your retirement distributions. Your Tucson retirement planner can help you determine what the best strategies are for taking your retirement distributions. If you don’t plan, you could end up spending your retirement savings before you even know it. Read on to learn more about the basics of retirement distributions.
When to Take Distributions
There are essentially two choices for when you can take retirement distributions. If you take distributions before you reach the age of 59 and a half, the amount you take out will be subject to standard income taxes as well as additional IRS penalties. It’s almost always a better idea to wait until you are over 59 and a half to take retirement distributions, as there are no penalties involved this way.
When to Retire
You can get more out of your retirement savings by continuing to work a little bit longer. You’ll still be paying into your retirement accounts and receiving your normal salary, which means you’ll have more left over once you do actually retire.
How Much to Take
The amount you take in your retirement distributions will depend on a number of factors, including how much you have, how old you are, and what you’re planning on using the money for. Initially, many people find it easier to take distributions similar to their normal incomes when they transition from working life to retired life.
It’s never too early to start thinking about planning for retirement. At Financial Directions LLC, we provide personalized financial advice for our Tucson-area clients. Contact us at (520) 408-7777 to learn more about how we can help you maximize your financial life.
