Decumulation v Accumulation:
When you decide to retire, you will have to create a monthly income out of the retirement savings you have accumulated. Instead of saving, you’ll be spending; the trick is, how do you keep from running out, because it’s a whole different way of dealing with your money!
An annuity might help you convert your retirement savings into a monthly income that can last as long as you live. You can sometimes think of annuities as your own personal pension. But not all annuities are the same. Learn more about fixed indexed annuities.
How RMDs Work:
Some people are surprised to find that they have less money saved for retirement than they thought due to RMDs (Required Minimum Distributions) which start at age 72. The money you have in retirement accounts like 401(k)s will be taxed as ordinary income when you take it out.