Spending Your Retirement Savings

He had so much money he could afford to look poor. 

Is it possible to plan your retirement so you can live with style and still break even at the end All you need to do is spend your income and nest egg at just the right rate. Intriguing  

Most retirees want their money—at least part of it—to outlast them to provide a cushion for late-in-life contingencies. Under no conditions do they want to be dependent on others. To achieve the right balance requires some clever planning plus a little luck. 

To start you thinking about Phase II (spending), the following strategies may be worth considering. Read all nine before deciding which one is best suited to your desires, philosophy, values, and financial situation. The more you discuss these options, the better. To be happy with your ultimate choice it should fall within your personal comfort zone and have a positive impact on your lifestyle. 

Following a discussion of the nine strategies, additional information on tapping your home equity for retirement living expenses, tools for estimating your spending level, and tax rules and penalties that affect your tax-deferred retirement accounts are discussed. All of these items are important to your Phase II planning. 

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Don t spend your retirement savings on other things. If you change employers, roll your retirement savings over into an IRA or your new employer s retirement plan. 

As you consider a spending plan for your retirement savings, you must be aware of several tax rules. A qualified tax accountant or attorney can guide you through this maze of taxes and penalties. 

The place to begin an analysis of what you need to do for a financially secure retirement is to look at your finances today. This will give you insight into how you are spending your money, whether you re getting ahead, and how much you ve been able to save. 

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