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How do I manage my savings and other assets in retirement?

Don’t “cash out” your retirement 401(k) savings before age 59½. This will always cost you money, and there are better ways to pay yourself through your retirement years, including using a rollover or keeping money in your company plan.
You do not know how long your retirement will last. It is important to invest in diversified assets, even as you enter retirement. Consider how much risk you can tolerate in making your investments, and get good advice about how to best invest your assets to fit your personal situation.
Consider investing part of your retirement savings in an annuity that gives you a steady “paycheck” for your entire retirement. Be aware that these can be complex financial products.
Set aside at least a year’s worth of living expenses in cash to avoid having to sell investments at low values.
The amount you withdraw for living expenses is critical. Don’t withdraw too much:
- Make sure you have enough money for at least 30 years of retirement.
- Don’t withdraw more than 4 percent of your savings in the first year.
- To calculate withdrawal amounts every subsequent year, multiply the percent you withdrew the first year by 1.03.

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