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How Much Should I Withdraw From My Retirement Nest Egg?
And how will it impact how long my retirement money will last?

Content developed by CUNA Brokerage Services, provided by Dwight Lee & Jason Persinger

When it comes to mapping withdrawals from your retirement account, is there a magic number that works for everyone? Unfortunately, no. However, there are a series of steps that you can follow to help determine a withdrawal rate that may work best for you.

Step 1: Set Realistic Expectations
One useful rule of thumb is that for a 30+ year retirement a withdrawal rate in the 3% to 5% range is prudent.

Step 2: Customize Your Number
Fine tune your withdrawal rate based on your individual situation. Consider the following:
    How long will you need an income from your nest egg? If your retirement plans are less than 20 years, you may want to consider increasing your withdrawal rate. If you have a longer timeframe, consider a lower rate.

    Lifestyle: If your expenses require a higher withdrawal rate than the 3% to 5% range, are you willing to risk the additional strain that a higher rate will put on your portfolio? Are you willing to risk running out of money? Or are you willing to cut back your lifestyle to fit a lower withdrawal rate?

    Asset Allocation:
    Do you have a portfolio that suits your withdrawal rate and risk tolerance? A portfolio invested too conservatively may mean a lower withdrawal rate or an increased chance of running out of money. A portfolio invested too aggressively may impact your peace of mind during retirement.
Step 3: Monitor Your Withdrawal Rate
By carefully monitoring your withdrawal rate throughout retirement, you can make adjustments to meet your changing income needs.

A Withdrawal Rate that Works for You
By working closely with a financial advisor you can create a strategy that will allow you to reach your retirement goals without unduly risking outliving your retirement nest egg.

Dwight Lee and Jason Persinger are Financial Advisors with Members Financial Services located at NuVision Federal Credit Union. If you have any questions or would like to provide feedback regarding the information presented in this article, you may contact Zack Seitz at (714) 375-8151 or Representative is not a tax advisor or legal expert. For information regarding specific tax situations, please contact a tax professional. For legal advice, consult an attorney.

Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members.

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