Ways to Spend Your IRA Savings
You’ve spent so long saving for retirement. Making tons of sacrifices, meeting savings goals, and much more, only to find that making your money last while in retirement can be just as hard as saving for it in the first place. Luckily, there are a few ways you can spend your IRA savings in a smart way and make it last. Keep reading to learn more about ways to spend your IRA savings, including a precious metal IRA, and make the most out of your retirement savings.
The 4% Rule, with a Twist
An article by CNBC says the 4% rule is a well-known rule of thumb for retirement spending.
It says people should withdraw 4% of their total nest egg in the first year of retirement. To determine later annual withdrawals, they’d adjust the prior year’s dollar figure upward according to the inflation rate. For example, an investor would be able to withdraw $40,000 from a $1 million portfolio the first year. The next year, a 2% inflation rate would add another $800 (or $40,800 total). In year three, another 2% inflation rate would yield a $41,616 total withdrawal, and so on.
One of the merits of this approach is it feels like a quasi-paycheck since it’s a steady stream of income. But it’s likely too rigid, experts said — retirees take the same amount, without regard to market fluctuation. The better approach is to forgo an inflation adjustment in the year after a portfolio has a loss, according to Benz of Morningstar.
Using the above example, if the $1 million nest egg has a negative return in year one, the retiree would take a $40,000 withdrawal in year two (instead of the higher, inflation-adjusted $40,800). This approach may work well for people on fixed budgets without a lot of wiggle room, Benz said. And it’s relatively straightforward for do-it-yourselfers. “It’s not nothing, especially in the current environment where inflation is high,” Benz said of the haircut. “But it’s a simple tweak — one I think many people could live with,” she added.
Another way to make spending your IRA savings easier is to ensure you have non-portfolio income. This can include things such as Social Security, a pension, annuity income, a part-time job, and other streams of income. For example, if you need $60,000 annually but receive $10,000 from Social Security, you will only need to draw $50,000. This will stretch your IRA savings.
Invest in Gold
Who says you have to stop investing once you retire?
By rolling over your IRA, 401(k), 403, TSP, or 457 Plan into our Precious Metal IRA Account, you can achieve the same profits that you would gain by purchasing gold or silver directly while also enjoying the benefits that your retirement account provides.
We have a proven four-step process that makes it easy to open a precious metals IRA, and we guarantee you the highest caliber customer service. Our IRA specialists will answer all of your questions, work with your current custodians to ensure a seamless transition, provide you with a free metal evaluation, and continually help you to review your portfolio.
Gold and silver are two of the world’s most desired commodities and are the only assets that are universally accepted standards of payment. Gold and silver also allow their owners to acquire currency anywhere in the world, making these metals versatile regardless of location.
A precious metal IRA will ensure security in your retirement. In the last ten years, many investors lost their entire life savings when financial markets collapsed. Many of these portfolios, which were exposed to paper-backed investments such as stocks, bonds, and mutual funds, were rendered worthless during the sharp market downturn of 2008. By comparison, investments in gold and silver did remarkably well during this time period because these precious metals not only provided protection against inflation but also tended to move higher during stock market crashes, geopolitical risk, and economic uncertainty.
More Retirement Savings with Priority Gold
If you are ready to invest in gold to protect your savings and secure your future, we can help. Priority Gold is one of the most trusted precious metals dealers in the United States, with a BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink.
We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers. Our team is committed to helping to streamline their precious metals purchases at a fair price, selecting the right precious metals portfolios, and meeting their important financial objectives.
We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and smooth IRA Transfer. And gold shows up on schedule. Priority Gold guarantees the highest customer service standards, which come with honesty, professional conduct, and an Ethical Code of Business.
For more information, visit us at prioritygold.com