Ready to Tap Your Retirement Savings in 2026? 3 Questions to Ask Yourself First.

Core Insights - The article emphasizes the importance of having a strategic plan for retirement withdrawals to avoid the risk of running out of money during retirement [2] Group 1: Spending Needs - It is crucial to map out a budget that includes both needs and wants before deciding on withdrawal amounts from retirement savings [4] - Retirees should consider various expenses such as gym memberships, club fees, subscriptions, and travel when planning their budget [5] Group 2: Other Income Sources - American retirees often have additional income sources, such as Social Security, which should be estimated and factored into the withdrawal plan [6] - Other potential income streams may include part-time work or rental income from properties, contributing to a comprehensive understanding of financial needs [6] Group 3: Safe Withdrawal Rate - Establishing a safe withdrawal rate is essential to ensure retirement savings last throughout the retiree's lifetime [7] - The popular 4% rule is mentioned as a guideline for a balanced portfolio of stocks and bonds, but adjustments may be necessary based on individual portfolio composition [9] - For a portfolio heavily weighted in bonds, a lower withdrawal rate of 2.5% to 3% may be more appropriate, while a stock-heavy portfolio might allow for higher withdrawals [10] - The age at which withdrawals begin should also influence the withdrawal strategy, with early retirees needing to be more conservative [11]