5 minute read
FINANCIAL FOCUS
6-month
1-year
2.55 Managing Withdrawals Carefully % APY* Minimum deposit $1000 Can Protect Retirement Income This article was written by Edward Jones for use by your local Edward Jones Financial Advisor Ken Wood % APY* Minimum deposit 2.75 $1000 T hroughout much of your working life, you contribute to your 401(k), IRA and other investment accounts to help ensure a comfortable retirement. However, once you do retire, you’ll need to shift your focus somewhat from building these investments to using them—in other words, you’ll have to start withdrawing from your portfolio to meet the costs of living. How can you be sure you’re not taking out of your retirement. For example, if you are in your mid-60s, you could start at a withdrawal rate of about 4 percent, which also assumes an increase in withdrawals (a “raise”) of approximately 3 percent each year to incorporate inflation. By starting at a more modest withdrawal rate, you would have some flexibility for those years in which the market drops significantly. And you could increase your chances of extending the lifetime of your portfolio. We Understand Commitment. % APY* Minimum deposit * Annual Percentage Yield (APY) effective 12/18/18. CDs offered by Edward Jones are bank-issued and FDIC-insured up to $250,000 (principal and interest accrued but not yet paid) per depositor, per insured depository institution, for each account ownership category. 2-year 3.00 $1000 so much that you risk outliving your resources? First of all, you need to establish a proper withdrawal rate—the percentage of your portfolio’s But even if you started out with a conservative rate, you may need to review it during periods of extreme market movements. If, for instance, your For decades, Edward Jones has been committed to providing financial solutions and personalized service to individual Please visit www.fdic.gov or contact your financial advisor for additional information. Subject to availability and price change. CD values are subject to interest rate risk such that when interest rates You’re Retired. value needed for one year’s worth of retirement expenses. Ideally, if you were to stick with this rate, portfolio were to fall 20 percent in one year, the 4 percent you had planned to withdraw would rise, the prices of CDs can decrease. If CDs are sold prior to maturity, Your Money Isn’t. your portfolio would last as long as you do. Your actually become 5 percent because you’re taking out the investor can lose principal value. FDIC insurance does not cover withdrawal rate should be based on a number of factors including your age, amount of assets, portfolio mix and retirement lifestyle. A financial the amount you had planned, but now it’s from a smaller pool of money. If this happens, should you consider making an adjustment? Locations in the community and face-to-face meetings losses in market value. Early withdrawal may not be permitted. Yields quoted are net of all commissions. CDs require the distribution of professional can help you determine the rate that’s right for you, but it’s important to understand that this rate is a starting point, since you will want to review your withdrawals each year to ensure they are still appropriate. There’s no easy answer. The amount you withdraw from your portfolio has a major impact on how long your money lasts. You’ll improve your likelihood of success if you are able to be flexible and make some spending adjustments—spending less on some of Investment Philosophy A long-term approach that focuses on quality investments interest and do not allow interest to compound. CDs offered through Edward Jones are issued by banks and thrifts nationwide. All CDs sold by Edward Jones are registered with the Depository Trust Corp. (DTC). To learn why consolidating your retirement accounts to Edward Jones makes sense, call my office today. edwardjones.com Member SIPC Ken Wood Financial Advisor 477100 Highway 95 Suite B Ponderay, ID 83852 208-255-2613 If the financial markets performed smoothly and your discretionary items, for example, or not taking predictably, year in and year out, any adjustments you make would likely be more modest. But, as you know, and as we’ve all been reminded the last several months, the markets are neither smooth nor predictable. Rather than constantly trying to change your withdrawal rate and spending in response to movements in the markets—which may be challenging if you have grown accustomed to a certain standard of living—you might be better off adopting a more conservative rate at the beginning a “raise” until your portfolio recovers. Importantly, your financial advisor can help run different scenarios to determine if adjustments need to be made to ensure you remain on track. In any case, think carefully about your withdrawal rate. By managing it carefully, and reviewing it over time, you can take greater control over your retirement income. Make your financial future a priority. Ken Wood Financial Advisor . 477100 Highway 95 Suite B Ponderay, ID 83852 208-255-2613 www.edwardjones.com Investment guidance tailored to your individual needs 477100 Highway 95 Suite B Make your financial future a priority. Make your financial future a priority. Ken Wood Financial Advisor . 477100 Highway 95 Suite B FDI-1867H-A www.edwardjones.com Member SIPC Call or visit your local financial advisor today. Ken Wood Financial Advisor 477100 Highway 95 Suite B Ponderay, ID 83852 208-255-2613 To learn more, call today.
Financial Advisor . 477100 Highway 95 Suite B Ponderay, ID 83852 208-255-2613 www.edwardjones.com
IN THE FACE OF UNCERTAINTY OR DANGER, ARE YOU PREPARED TO RESPOND IN A SAFE AND RESPONSIBLE MANNER?
EXCLUSIVE TRAINING CLASSES
• Women’s-Only Basic Pistol • Real Estate Professional Response • First-Time Gun Owner
Check out our website for more information on our classes!
North Idaho’s only full-service indoor range, training facility, firearm servicing/custom work and retail store.
Tuesday - Friday 10am-6pm, Saturday - Sunday 11am-5pm www.WrencoArms.com | 208.265.6737 | One mile north of Walmart on Hwy 95 | 478338 Hwy 95, Ponderay, ID 83852
PET GROOMING
Clean Your Paws offers our clients high-quality grooming services with loving care and compassion. Clients’ dogs are family.
Services:
• Custom grooming tailored to best suit the needs of the dog and their owner • Bathing and blow dry • Nail trimming • Ear and eye cleaning • Teeth brushing • And more!
New clients get 20% off!
208-255-6375 806 Lake St., Sandpoint, Idaho
Formerly known as Quality Grooming
Mention this ad for $5 off a small dog groom, $10 off a large dog groom or a free nail trim!
