How to Make Retirement Savings Last

You have saved all your life for retirement. Once you have finally reached retirement, you want

to get the most out of your savings. There are many different retirement plan options to keep

track of and manage: IRAs, 401(k)s, investment accounts, and Social Security.

To maximize savings, keep the following things in mind:
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Avoid penalties by taking the required distributions from your IRA or 401(k). You have until

April 1 after you turn 70 ½ to begin taking the minimum distribution or face a penalty. If you

take distributions after that date, you will pay 50 percent on the amount that should have been

distributed, but wasn't. To calculate your minimum distribution, take the total of account

balances divided by the distribution period calculated by the IRS.

Decide when to take your Social Security. You can begin taking it any time after age 62. The

longer you wait —- up until age 70 -- the more money you will get in each check. Whether to

wait or not depends on your individual circumstances. You may want to consider your life

expectancy. If you have a long life expectancy and you can afford to, you may want to wait until

age 70 to begin getting benefits.

Look at your IRA and make sure you have the best account for your needs. If you have a

traditional IRA, you may want to convert it into a Roth IRA. You will pay taxes on the

income earned to date, but then it will be able to grow tax-free.

Make the most of your investments. Many financial advisors advise that investments be

60 percent in stocks and 40 percent in bonds or other fixed-income vehicles, but the right

mix for you depends on your circumstances and risk tolerance. In addition, the general rule

of thumb is to spend about 4.5 percent of retirement investments each year.

Consider consulting a financial planner. If you have a lot of investments, a professional

financial planner could help you determine the best way to manage the accounts.