Sustainably Sourcing Your Retirement Income

Even before YouTube saturated our minds with images of children doing ordinary, cute kid things, television broadcasts etched themselves in our memories of the marshmallow experiment. Researchers would leave a child in a room with a marshmallow for one minute. The researcher would tell the child that, if the child had not eaten the marshmallow by the time the researcher returned, the researcher would give the child a second marshmallow, and the child could eat both marshmallows. Unbeknownst to the children, researchers filmed the children struggling to pass the time as a marshmallow sat on the table in front of them, looking fluffy and delicious. The children twiddled their thumbs, drummed on the table, spoke directly to the marshmallow, or closed their eyes and tried to think about anything except the marshmallow that would become two if only they could leave it alone for just a few more seconds. A surprisingly large percentage of the children managed to stay away from the marshmallow until the researcher returned with a second marshmallow. Do you have as much self-control as a kindergartner? You might think that the answer is an obvious “yes,” but so many seniors treat their retirement savings like a delicious marshmallow that they can’t resist, even though the savings would grow if they could manage to leave it alone. For help summoning the willpower not to gorge yourself on your retirement savings too soon, contact a Washington, D.C. estate planning lawyer.

For a Financially Secure Retirement, Keep Your Hands Out of the Cookie Jar for as Long as Possible

The best way to ensure that your fixed income is as high as possible is to postpone drawing income from the sources that give you higher monthly payments if you wait longer to start drawing from them. For example, Social Security gives you a monthly check for the rest of your life. The oldest you can be to start drawing Social Security is 70; most people start taking payments earlier, but the monthly payment amount is lower. If you can stay in the workforce until you are 70, or live on your savings from the time you retire until you start drawing Social Security, you can get the biggest possible Social Security check every month, even if you live to be 100.

No matter how wealthy you are, your 401(k) income is finite, but you should still postpone withdrawals from your 401(k) account, so it can generate the greatest possible amount of interest. The maximum age that you can start taking required minimum distributions from your 401(k) account is 73. If you work until you are 70, live on Social Security for three years, and then start taking RMDs from your 401(k) when you are 73, you will feel like you got a windfall late in life.

Contact Tobin O’Connor Concino P.C. About Making Your Retirement Income Last

A Washington, D.C. estate planning attorney can help you make wise decisions about the issues that will make or break your retirement.  Contact Tobin O’Connor Concino P.C.  in Washington, D.C. or call 202-362-5900.

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