How to Make Your Retirement Savings Last 30 Years Without Running Out
Maintaining proper allocations and carefully limiting your withdrawals are key components of a long-lived retirement plan.
Overview
You've worked hard to build your retirement nest egg. Now what? How do you make sure your savings last at least as long as you live? There are several things to do. Here are the three most important.
It's easy to assume the right thing to do the day after you retire is simply convert all of your growth holdings into income holdings. That's not a winning strategy, though. The fact is, most people will need a combination of growth and income once your work-based paychecks stop. How much of either depends on your situation, although a 50/50 allocation isn't a bad target to start with. Adjust accordingly based on your age, the amount you've saved up, and your income needs.
Details
Just keep in mind this growth needs to be reliable even if it means somewhat muted gains -- you can't afford to take major investment losses in retirement. Also remember there are plenty of dividend-paying stocks that also produce respectable capital gains.
Source
Originally published at www.fool.com.