Key Points The 4% rule is a popular strategy for managing retirement savings. Suze Orman thinks 4% may be too aggressive a withdrawal rate today. She recommends a more conservative approach coupled with other means of attaining financial security in retirement. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. A lot of people reach retirement age without much money in savings. But if you worked hard ...

Canva: Monkey Business Images and Jonathan Ross from Getty Images Quick Read A $4 million nest egg generates $160,000 annually using the 4% withdrawal rule. Healthcare, taxes, and long-term care costs remain major variables that can significantly impact retirement spending. You may enjoy a nice retirement with $4 million saved, but continue to manage your money carefully. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reali ...

Key Points You may be hesitant to spend the savings you've worked hard to build. Having a strong budget and withdrawal strategy could help alleviate your worries. Also remind yourself why you saved that money in the first place. The $23,760 Social Security bonus most retirees completely overlook › There are many people who struggle to build up a decent amount of retirement savings. And people in that boat often have to live more frugally in retirement than they want to. But sometimes, an interes ...

Key Points The 4% rule has you withdrawing 4% of your savings your first year of retirement, with future withdrawals adjusted for inflation. For the rule to work, certain factors need to be present. Research suggests the 4% rule may not work optimally in the new year. The $23,760 Social Security bonus most retirees completely overlook › You might assume that building up a retirement nest egg is one of the most challenging things you'll ever have to do. After all, it's not easy to find the money f ...

Core Insights - The article discusses the importance of saving for retirement and the challenges associated with traditional withdrawal strategies like the 4% rule [1][2][3] Group 1: Retirement Savings Strategies - The 4% rule is a common strategy for managing retirement savings, allowing for a 4% withdrawal in the first year and adjusting for inflation thereafter [3][6] - The 4% rule is criticized for its rigidity, as it does not account for varying spending needs throughout retirement [4][7] - The author suggests a need for a more flexible withdrawal strategy that allows for larger withdrawals in the early years of retirement, followed by reduced spending later on [5][7] Group 2: Concerns with the 4% Rule - The 4% rule assumes a balanced portfolio of stocks and bonds, which may not be applicable to all retirees [4] - The rule is based on the assumption that retirees will need their savings to last for 30 years, which may not align with individual retirement plans [4] - The lack of flexibility in the 4% rule is highlighted as a significant drawback, as it does not accommodate changes in spending patterns over time [5][6]

Core Insights - The article discusses the complexities faced by a widower, Stan, in managing his late wife's retirement accounts, particularly focusing on the rules surrounding required minimum distributions (RMDs) from Roth IRAs and 401(k)s [1][2][3]. Retirement Accounts Management - Stan inherited his wife's Roth IRA and 401(k) and aims to use his own investments for daily expenses while preserving his wife's accounts for their children [2]. - At age 73, individuals are required to withdraw a minimum amount from retirement accounts, which raises questions for Stan regarding his late wife's accounts [2][3]. Roth IRA Specifics - Roth IRAs are not subject to RMDs until the original account owner dies, which is relevant for Stan since he is the sole beneficiary [4]. - As the surviving spouse, Stan has different rules compared to typical beneficiaries regarding the management of the inherited Roth IRA [4]. 401(k) Considerations - Stan's wife's 401(k) will not require distributions until she would have turned 73, as she passed away before reaching RMD age [5]. - Stan has options for managing the inherited Roth IRA, including delaying RMDs for two years or following the 10-year rule to empty the account by the 10th year after his wife's death [6]. Options for Inherited Roth IRA - Stan can either delay RMDs for two years or adhere to the 10-year rule, which mandates the account be emptied by the end of the 10th year following his wife's death [6]. - Alternatively, to avoid RMDs altogether, Stan could roll over the funds into his own Roth IRA, allowing the funds to grow tax-free, provided he is the sole beneficiary [6].