Are You Taking Too Much From Your Retirement Funds?



By Maryalene LaPonsie

After 40 years of saving money in retirement accounts, people are left to determine how to use that money wisely once they leave the workforce. “These days, most retirees are paranoid about running out of money,” says John Gajkowski, co-founder of Money Managers Financial Group in Oak Brook, Illinois.

They may have good reasons to be concerned. Many retirees move their money into stable investments such as bonds which, while safe, offer little in the way of interest. Kerim Derhalli, CEO of the financial app invstr, notes the days of double-digit interest rates are long gone. “$100 is no longer growing by $10 a year,” he says. “It’s barely growing by $1 a year.” That means old advice on how much can be safely withdrawn from retirement accounts is no longer relevant, and retirees need to be thoughtful about how they manage their 401(k)s and IRAs.

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