Getting Income In Retirement
More than Money with Gene Dickison Answers:
“My wife and I are getting ready to retire at the end of this year. We’ve saved nearly $700,000 in our 401(k)s. We know we will need some income from these accounts to supplement our social security payments (neither of us have pensions). How do we get income from these accounts?”
It depends . . . on your exact income (cash flow) needs.
You will have many different income options when retirement arrives. You could choose to receive a set monthly payment (with income taxes withheld if you choose – and you should choose) direct deposited to your personal checking account. This selection works very much like a direct deposit paycheck – very consistent.
You could choose to withdraw income only as you need it. You would select the amount and timing of each withdrawal – very flexible.
You might even mix and match taking a portion of your income monthly and supplementing your income as additional needs or wishes arise.
The lesson to be learned from your question – you have nearly an infinite level of flexibility to meet your very personal needs. Don’t feel ‘trapped’ ‘pressured’ or ‘locked in’. Relax, start basic, and adjust as necessary.
What income will you need from your investments in retirement?