What percentage of retirement assets should a couple withdraw monthly at age 65? Are there good guidelines?
459116
That's a very good question.\n\nThere's a paper published on AAII.com which discusses this issue.  In the paper, the author runs simulations on historical data and how much withdrawal rate would be more likely to sustain the portfolio for the entire retirement.\n\nFor a 50/50 stock/bond portfolio, withdrawing for 30 years, the success rate is 98% if withdraw 6% of the total value at the beginning of retirement.\n\nA very general rule of thumbs is to withdraw 5% or less, 3% to be on the safe side.
120424
Try the following: 1)Get the actual amounts you are eligible for at ages 62, 65 and 70 from the SSA.  2) Assume your remaining life span. Since you do not appear to need the money to live, base your decision on the maximum SS $ you will receive based on your assumed age at death.  For example if you are entitled to $1,000/month at age 62, or $1,200 at age 65 or $1,700 at age 70 and you assume you will live until 85 then the math would suggest if you began to draw at 62 and lived until 85 you would draw a total of $276,000; $288,000 if beginning at age 65 and $306,000 if you waited until you were 70. Ofcourse these calculations do not include the added cash you would accrue if part or all of the money were invested as you aged.  Remember the RULE OF 72. What percent do I need to double my money???  Divide 72 by the number of years and the answer is the percent needed.  For example to double your money in 12 years you would need 6% compounded.  (12 times 6 = 72).  It also works in reverse - if I can invest at 9% APR and compound the interest it would take 8 years to double my money. (9 times 8 = 72).  Teach this rule to your children and grandchildren and they will easily see the value in saving....and they have the best advantage of all.....TIME
103673
She's right if that is as much as you can invest.  Your best bet is to max out both if you can afford to.\n\nHere's the order:\n\n401K to match:\nROTH IRA max\n401K max
1143306
As you get closer to the 55-65 age range, you need to be more careful with your investments and reduce risk.  This is because you have less time left in life to recover any losses and due to less income from work.  You may be going into a "fixed income" situation and need to live on Social Security or a pension.  Therefore, you can't afford to take a big hit in stocks.\n\nI suggest a balanced portfolio of stock funds and bond funds as well as a money market fund.  You want to pick funds that perform well in bear markets.  As you grow older; you move money out of stocks and more into bonds and money funds.  Fidelity and Vanguard have several outstanding no load and low load funds.  Less than 10% of your portfolio should be in individual stocks at age 65.   \n\nIn addition, you may want to consider annuities.  One popular new product is the "Equity Indexed" annuity.  This allows you to bear zero risk of loss and participate in the return on the S&P 500 or some other market index.   You need to be sure to buy from a strong insurer and to only put in money you don't need to live on as an annuity is a long term product.  An annuity can provide a lifetime stream of income if funded properly.\n\nI suggest you meet with a financial planner.  This person should be a CPA, EA, CFP, or Chartered Financial Consultant.  They can be fee only or work on commission.  You need to ask lots of questions when hiring one.  Good Luck.
842365
Everyone must create his own retirement savings.  You need to save about 15% of every dollar you'll ever make to expect a reasonable retirement.  You need to deversify your investment and maintain a good rate of return (about 8% per annum). Avoid any mutual funds with annual fees exceeding .2%.  Direct investment in stocks and bonds will greatly reduce the expense drain on your portfolio.\nPut 10% of your money into foreign investments.
971847
Maybe, depending on how high you want to live.    \n\n3 million in 29 years is roughly equivalent to $750,000 now.   You can pretty safely withdraw 4% per year forever or about $30,000 per year in today's dollars. If you are SS age you get another $15,000 or so for a total, in today's dollars, of $45,000 per year, increasing with inflation, forever. \n\nIs this enough for you?
1130232
if you are the spouse and named as the primary beneficiary (not the estate), you can do a 'spousal rollover' into your own IRA and take the $ out over time or at your convenience. \n\nIf you are over 59 1/2 yrs old, distributions will not be subject to penalty. IF you are under 59 1/2, you can can substantially equal distributions over your lifetime and not pay a penalty. \n\nGetting money out of the IRA will always have income tax associated with it (unless the contributions were non-deductible).\n\n--\nAny tax advice included in this written communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed by any governmental taxing authority or agency.
519497
Most places base how much they'd offer on 3.5 or 3.75 times your joint income, or similar. So for that amount, borrowing around 110k, over 27k per year between the two of you.\n\nYour best bet is to talk to an independant financial advisor - I'd recommend London and Country, but there are other good ones. There's loads of info on all kinds of financial stuff, including mortgages, at the website:  www.moneysavingexpert.com\n\nGood luck (we get our keys tomorrow and it's just as stressful as you've heard...)
827559
You can actually draw all of it at age 59 1/2 without penalty but you will have to pay income taxes on the tradtional IRA but not the Roth.  The mandatory withdrawal starts at age 70 1/2 and is a formula based on your life expectancy.  The company you have the account with can give you the minimum you must withdraw each year to meet the IRS rules.
394233
The rule of thumb is 50%.  However, if the borrower is frugal and isn't burdened with debt, perhaps they can get away with a higher percentage.  It's just a matter of convincing the lender.
124459
Right now you are bf/gf so it is important that everything be split 50/50.  This is to protect both of you in case you end up breaking up.  Breaking up is hard enough let alone if you end up with legal issues regarding money and stuff.\n\nIf you were married though I would say that money shouldn't be kept seperate.  It should all go into a joint account that you manage together.  There shouldn't be seperate credit cards and there shouldn't be seperate names on certain titles to vehicles or homes.  In a good relationship there is no trying to protect ones self or worrying that one person contributes more money than the other.  It is all about doing for the good of the family and the relationship.
99863
You can withdraw money from your 401k without penalty at age 59.5. HOWEVER, you can take 72T distributions (named after the IRS Rule 72T) prior to age 59.5 and avoid the 10% penalty. Rule 72T stipulates that as long as the distributions are substantially equal and based on your life exepctancy they will not incur the penalty. The payments must continue for 5 years or you reach age 65.
785959
The other answers forget..\n\nRule 72 (IRS) allows u to pull the $$$ from IRA (assume it applys to 401k too)...\n\nIt allows u to get it before 59.5 with only taxes to pay if u do it over a specified period of time.\n\nFor example u pull 40k out but do 4k per year for 10 years.\nThis is a way get $ out before 59.5 without penalty.\n\nIRS recongizes that there are life events that force many to grab funds from existing sources for emergencies.\n\nU could use this rule to pull out 100% of the 401k, and use portion for wife and portion for self.
148458
Many mutual fund families will waive their intial minimum requirement if yu set up an automatic investment plan, usually as low as $25-$50 per month. It is a good way to systematically save. Try American Funds, I believe they have very low minimums on this kind of approach.
630556
You definitely want to roll it over to a self-directed IRA, where you'll be able to invest in stocks, bonds, mutual funds, annuities, and yes, even CDs.  Stay away from the bank, their idea of a good return on an IRA is a 5% CD. No one under 55 should ever have CD's in their IRA, it's a waste of both your age (which can be a powerful weapon) and the IRA's tax-deferred status.  CDs are for much older people, or for money that needs to remain somewhat liquid--which is something IRA money does not.\n\nDespite Scuhbby's inane assertion that the average mutual fund does 16-30% (no, the average mutual fund loses money), mutual funds are absolutely the way to go.  Pick a broadly diversifed mix of assets classes, cover all your bases, and remember to rebalance every year.  A financial advisor might be able to help you with this, but if you have the tools, talent, and time to do it yourself, go for it.  And oh yeah, the discipline, which is the most important.\n\nMake sure you hit all the asset classes, such as large-, mid- and small-cap stocks, international stocks, investment grade and hi-yield debt, foreign debt, commodities, real estate, and precious metals.  Come up with a mix you're comfortable with, and sit back.  A properly allocated diversified portfolio will average 8-12% return per year, on average, and you'll be able to take advantage of the IRA's tax-deferred status.\n\nMOST IMPORTANT, if you qualify income-level wise, IMMEDIATELY look into converting your IRA (once you've rolled over the 401k) to a ROTH IRA.  Thus, not only will your preserve your tax-exempt status year-to-year, you'll also ensure all future earnings will be 100% TAX-FREE.  Even a normal IRA/401k requires you to pay taxes when you take distributions.  Converting could have some current year tax consequences, so consult a financial advisor for your specifics, but in nearly every case I have found it to be worth it.\n\nHope this helps!\n--J.
477328
I suggest you to stay away from annuities.\n\nIf you need help with your finances drop me a line.
544706
unless you are planning on living in a cardboard box, or are filthy rich, you better be saving!!! minimum to set aside is 10% of your income, but that is bare bones minimum. don't count on the government of any country to help you, and if they do, it will be subsistance level only, don't expect to be warm and well fed. you have only yourselves to count on. I certainly hope your children will take care of you, but that mostly depends on how you raise them. are you raising them to believe that family is important, and that old people are to be respected and honored? are you raising them to be responsible adults and to have respect for others and themselves? even so, they could have tragedies in their own lives that prevent them from being there. and when you consider that people are living longer than ever, how do you think you are going to pay for your food, housing, medicine for all those years after retirement if you don't have some set aside? I bet if you go into a senior center or retirement home in any country, you will find plenty of people going without medicine, food, and other important things because their social security or government benefits just aren't enough. contact a financial advisor or do some research yourself and start saving and investing now.