Any financial professional or investment manager will tell you: because of compound interest, the earlier you start saving and the longer you let your investments percolate in the market, the larger your nest egg will be in retirement. And in general, that’s exactly right. But sometimes, other conditions can impact the size of your accounts: inflation, income from your working years that will affect your social security benefits, and even when you choose to start withdrawing your retirement funds.
The attached piece from Legg Mason, What a Difference a Year Makes, takes a historical look at how some years appear to have been better than others for tapping into retirements savings…as you’ll see, even one earlier or later year can have a big impact. Because a market downturn can still hurt investments if it happens early in retirement, it’s important that we continue planning even after you start taking withdrawals. There are options to help you maintain your financial goals. If you’d like to evaluate your plan strategies no matter where you are in the process, let's find a good time to connect.
Tapping Your Retirement Nest Egg the Smart Way
December 05, 2020