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Most people enter retirement without any idea how to manage withdrawing their savings without running out of money. Here is what you need to know.
Take James, for example. James is 45 years old and describes himself as financially responsible. He has an emergency fund that would cover three months of his family’s expenses, $250K in his IRA and is on track to pay off his mortgage right before he hits retirement age. He and his wife also own their two cars outright and have no consumer debt.
The potential to compound one’s wealth grows by the day as the world shrinks by the day through commercial advances that reach greater and greater numbers of people.
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Social Security will replace only about 40% of your salary, on average. A solid financial plan will help you plug the gap so you can rest easy in retirement.
Set it and forget it” is working for young retirement savers for now — but it might not be good enough in the end.