I'm 63 and Planning to Retire at 67. How Do I Make Sure I Don't Run Out of Money

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Planning for income sustainability at 67 requires thinking about a problem most people underestimate: retirement is not a finish line. It is the beginning of a 20 to 30-year financial management challenge. A 63-year-old woman in good health has a median life expectancy extending into her mid-to-late 80s, according to the Social Security Administration's actuarial tables. Planning for 20 years of retirement income is a reasonable baseline. Planning for 30 is prudent.

Running out of money in your 80s is one of the most devastating financial outcomes available, and it is avoidable with the right structure.

The 4% rule, originally from a 1994 study by financial planner William Bengen, suggests that withdrawing 4% of your retirement portfolio in year one and adjusting for inflation annually produces a high probability of the portfolio lasting 30 years. On a $600,000 portfolio, that is $24,000 per year, or $2,000 per month, from investments.

Find out if your retirement plan is exposed to risks most investors overlook — get matched with a fiduciary adviser today.

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Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/articles/im-63-planning-retire-67-203105290.html)