This calculator is intended to serve as an informational tool only, and should not be construed as legal, investment or tax advice. Please consult with a tax advisor or an investment professional about your unique circumstances.
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Annual rates of return can vary significantly and will depend upon your asset allocation and other variables. Historically, higher rates of return have been associated with higher degrees of risk.
Some financial planners recommend a withdrawal rate between 3% and 6% of initial savings balance at retirement. You should choose a rate that suits your specific needs, however.
If the IRA holder turns 70 1/2 this year, he can defer his first distribution until April 1 of the next year. If he is older, he would normally be required to take his RMD before December 31 of this year. However, recent legislation allows account holders to skip their 2009 RMD. in any case, RMDs are considered taxable income for the year in which they are taken.
Your Social Security benefits are based on your earnings history, and your spouse's benefit is the higher of 1/2 of your benefit or your spouse's actual benefit. To check your current projected benefit, check your annual Social Security statement or contact the Social Security Administration at 1-800-772-1213.