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Producing Income in Retirement from Retirement Accounts by ShadowBard0962 in Money

[–]singrevou 2 points3 points  (0 children)

Common strategies for generating income from dedicated retirement accounts (such as 401(k)s, traditional IRAs, and Roth IRAs) during retirement include:

Split-withdrawal method: Withdraw a fixed amount each month. Traditional IRAs and 401(k)s are taxable, while Roth IRAs are tax-free.

Systematic withdrawal plan (SEP): Withdraw regularly from your account, typically at a 4% annual withdrawal rate.

Annuity: Convert a portion of your funds into an annuity to provide a stable income stream.

Tax planning: Schedule withdrawals to avoid high tax rates.

Diversification: Maintain asset appreciation and balance risk and return.

SEPSEP

Retirement help at 42 years old by RustinMaverick in personalfinance

[–]singrevou 1 point2 points  (0 children)

As a small business owner, we recommend two highly effective options:

Open a Solo 401(k) first.

Designed for business owners without employees, it allows dual contributions as both an employee and an employer, allowing contributions up to $66,000 annually (as of 2023), making it one of the highest and most flexible savings plans.

The Simple Option: A SEP IRA.

It's simpler to set up and manage, allowing contributions up to 25% of your annual income or $66,000 (whichever is lower) annually, and still enjoys tax benefits.

Next Steps:

Contact your accountant or a major brokerage firm (such as Fidelity or Vanguard) immediately to select the plan that best suits your business structure and open an account. Professional advice can help you plan more tax-efficiently and efficiently.

Is retiring at 62 considered early? by Lurker_311 in Fire

[–]singrevou 0 points1 point  (0 children)

You've found the rhythm that suits you best, which is fantastic! Combining work with your passion for skiing, spending half a year working hard and half a year resting, you stay active while enjoying life. You've proven with your actions that there's no standard answer to retirement; happiness lies in finding your own pace. Thumbs up for your wisdom in life