There are two primary factors that affect how long your money will last and how much money do you need to retire. One is inflation, and the other is taxes. Both of these factors are a certainty you can’t ignore.

Inflation means your retirement dollars will buy less, so you’ll need more retirement dollars just to stay even. For example, let’s say you’ve got a fixed retirement income of $25,000 a year. Inflation will eat into the buying power of that money in short order. Fixed income leaves you in a fix when it comes to inflation. You’ll need to grow your retirement income just to keep pace with the ravages of inflation. Certainly, you need better retirement income strategies to cope with inflation and taxes. Table below shows annual inflation for the past 25 years. (more…)

When people retire or need to withdraw money from pensions or investments, they get confused on what to do. How to withdraw money for income needed and from which account is always tricky. Here are five options for an easy withdrawal plan. Choose one or more depending on your personal situation:

1. Keep two years of retirement income needed in cash. (more…)