Rules of thumb for taking distributions
There is no right or wrong way to take distributions, but there are better and worse approaches depending on your individual situation. With that said, the distribution method you choose must accomplish the following:
- Align with your priorities — You may want to receive income every month. You may want to adjust your distributions yearly to account for inflation. You may want to take out a large one-time distribution to buy into a retirement community. Whatever your plans, your distribution arrangement should complement them.
- Ensure you don't outlive your savings — Withdrawing too much too soon could leave you high-and-dry later in retirement, so make sure you aren't taking out too much early on.
