If you're a "senior" member of the baby boom generation - generally defined as those born between 1946 and 1964 - you've seen a lot in your life: the Cold War, the first moon landing, the birth of the Internet and much more.
But in just a few years, you may face something you probably never thought you'd see: your retirement. To make a smooth transition to this stage of your life, you'll need to become familiar with a few key financial topics.
Consider the following:
- Retirement plan income
For the past few decades, you may have been building financial resources for retirement through an employer-sponsored plan - such as a 401(k) or a traditional pension - and possibly an IRA. Now, however, it's time to determine just how much retirement income these vehicles will produce.
A traditional pension will provide you regular payments based on your years of service and salary, but you have much more flexibility and latitude when it comes to taking withdrawals from a 401(k) or IRA. How much you withdraw directly affects how long your money will last, so you may want to consult with a professional financial advisor to determine the appropriate withdrawal rates for these accounts, based on your projected retirement lifestyle, life expectancy, risk tolerance and other factors.