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McCann said, Arecent withdrawal strategythat many professionals tend to use is 3.5%.
This can provide a distribution rate that may be sustainable for your portfolio to support.
In short, youll withdraw 3.5% of your portfolio each year for income.
That strategy means your entire portfolio should stay strong as you age.
You could be in retirement, living off your portfolio for over 30 years!
In other words, dont keep all your eggs in one basket.
So, youll wantsome blue-chip stocks, some high-growth stocks, some bonds, some index funds and more.
Talk to your financial advisor about the best ways to diversify your portfolio based on your specific needs.
Delay Social Security Benefits
Another thing McCann suggested is delaying your Social Security benefits.
The highest amount is paid for those waiting until age 70.
You will receive about an 8% increase per year while waiting to initiate your benefit.
Youll be on a fixed income, so you want to create apredictable expense sheet.
McCann explained, This means that there may be times when you must reevaluate your wants and needs list.
you better revisit your plan one to two times per year and determine if you are still on track.
Furthermore, dont forget to consider your healthcare expenses as you enter the later years of your life.
A good approach for this could be to factor some key in ofadditional healthcare expenseinto your annual budget.
Sit down and consider a long-term care plan, in-home help or a nursing home.
If these needs come up, youll want to be prepared to pay for them.
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