Frequently Asked Questions About Retirement Planning in Volatile Markets
With continued volatility and uncertainty in the market, you may be wondering how it's affecting your retirement planning and financial security. Here are some answers to questions we've received regarding action you can take now, considerations, and pitfalls to avoid.
I've heard historically that we can draw 4% of our portfolio annually - does this model still hold?
4% draw is a rough approximation that we often reference as a starting point. We don't use this estimate for our client cash flow projections for a variety of reasons.
If I plan to live to over 85 years, should I wait until I'm 70 to draw social security?
The breakpoint for delaying Social Security Income (SSI) to age 70 is mid-80s. It's only after this point that you would actually receive more dollars. The bigger factor in delaying SSI is whether or not you are still working and the tax rate applied to that additional income.
Your Roth IRA is considered after-tax dollars that can generally be pulled out of your account at retirement age. There are a few rules related to this and we can follow up to confirm that none of them apply to you.
For more information on retirement considerations in volatile markets, watch our full webinar recording below, or contact BakerAvenue to learn how we can help you navigate through your specific circumstances surrounding your retirement plan. When you need financial advice for your personal and professional life transitions, BakerAvenue is here for you.