Retirement income and savings can come from various sources, but the question remains: what should you tap into first? Liquid savings, stocks, bonds, home equity, or Social Security? Many Americans have no retirement savings at all, with a median retirement account balance for those aged 65-74 at just $200,000.
To retire comfortably, you may need far more than that, as many Americans believe they’ll need $1.26 million to retire. With multiple income sources, proper planning is crucial. A clear assessment with a financial professional can guide you in making the right decisions and managing your retirement funds wisely.
Cash is a good starting point for retirement withdrawals, especially if you’ve built reserves beyond your emergency fund. Cash loses value over time due to inflation, so parking it in a high-yield account can help counteract this loss and grow your wealth.
Taxable accounts are another source for withdrawals, with brokerage accounts being the least tax-efficient. Strategic investing in stocks can help offset gains with losses, maximizing your overall returns. Consulting a financial advisor can help you make the best decisions for your retirement plan.
Read more at Yahoo Finance: So, which of your savings vehicles should you tap first? Here’s what retired Americans need to know