The 4% Rule of Retiring Boomers

What are the baby boomer's doing? Last July over 250 million Americans turned 59 1/2. Baby boomer's were born between 1946 and 1964. The leading edge of boomer's hit their stride. Ready to take retirement by storm.

This is a big deal in the financial world. The risk will be seen as boomer's begin to withdraw funds from their retirement accounts. They can begin to withdrawl the funds without any penalties.

Much has been written and taught about saving money in retirement accounts, 401K plans. Not to much advice for making withdrawals--that could eat up your savings while still having a lot more life left to live! The goal is to make your money last. In this country-many will out live their money.

Your money will have to last you between 25 to 35 years after you retire, unless you have it first hand that you won't last that long. Even if you retire at 65 years old, add another 20 years for sure and maybe even longer-you could live to 85 or 90. But will your money last that long?

You will have to budget your funds and just limit your withdrawals. The key to having enough money to retire on is to limit. Set a percentage aside, like 4%. See how you do on the 4%. Make adjustments when needed. Try to stay within the percentage box. Then you can be sure your money will last as long as you do.

If the 4% rule doesn't appeal to you--you will just have to work longer! Add a few more years to the work force. Retirees work after official retirement for many reasons. One reason is because their savings don't cover the cost of living and other expenses like health insurance. The nest egg isn't as large as they need it to be.

If your a boomer sit down with your financial coordinators and be tuned in to hear the reality of your retirement. Hopefully you prepared well and are sitting pretty.Retirement can be a good thing.

Be smart when making withdrawals-The years go by pretty fast when you are retired. It's a great time in your life. You earned it. Be prepared to live like you so deserve. A penny saved...is a penny earned...is a penny more...than you had...a day ago....

A penny for your retirement thought.