Sewickley, PA Retirement Planning
Everyone needs a retirement plan, and within it there needs to be distribution plan. Your distribution plan should be created around your specific financial status and needs. There are five basic distribution options that you can choose from.
Don't touch the money
If you have enough money saved up in savings to where you don't have to touch your retirement immediately after retiring, then you might be able to leave your money sitting as is. You'll need to speak with your plan administrator to see if this is an option.
Open your own retirement account
If you prefer, you can create your own self-directed retirement account. You can roll your funds over into this new account; however, do keep in mind that you will be solely responsible for any future investment choices.
You can use your money to buy an annuity
With an annuity, you are guaranteed that you won't outlive your money, and any leftover funds can be distributed to your spouse.
You can have the entirety of your funds distributed to you all at once
Need your funds now? If so, you might consider taking advantage of a lump-sum distribution. Do remember, though, that this type of distribution will require you to pay your taxes on the withdrawal all at once.
You can spread out your distributions
Don't need all of your money all at once? Periodic distributions can be scheduled according to your needs. Generally, periodic distributions can be adjusted annually, meaning if you want quarterly payouts one year and monthly payouts the next year, this distribution preference can be accommodated.
The Takeaway
Now that you understand the basics of your retirement distribution options, you may need to speak with a financial advisor to determine which option is best for you.