So I’m often asked, “When should I start taking my retirement income?” It’s a really great question.
So first, let me share with you, never if you don’t need it!
Right? If you don’t need the supplemental income, let it continue to grow tax deferred. That’s the number one first rule, is if you don’t need it, don’t take it.
But on some accounts, they’re going to require you to take a certain amount of money out.
So let’s pretend you get to age 60 and you don’t need any money, which is a wonderful situation to be in. And I hope you’re all in that situation. But you, so you don’t need the money now. Your accounts got really big. There is a certain amount the government’s going to say you have to take, and that account is going to push you out a certain dollar amount that’s called a required minimum distribution, and they do that so the government gets paid.
That’s a required minimum distribution.
For more answers to common retirement planning questions, check out the rest of the Question Mark: Retirement Planning series.