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Make Your Retirement Nest Egg Last

401k eggIn 2016, very few folks have pensions, and life spans have lengthened. So, the issue is how to make your money last through your entire lifetime. The Motley Fool's article "3 Easy Moves to Make Your Money Last Your Lifetime" has three suggestions.
1. A great way to be certain your nest egg lasts as long as possible is to decrease your monthly expenses. A big cost is housing. Pay off your mortgage early, especially before you reach retirement age.
2. You can also take some of your retirement nest egg and use it to buy an immediate annuity. An immediate annuity takes the lump sum you invest up front and converts it into a stream of monthly payments. They will give you several options on how long those payments last. Converting all of your money to an immediate annuity is risky—once you've bought an immediate annuity, you generally can't touch your initial lump-sum investment. Hold some of your nest egg back to give you access to cash if you need it for unexpected expenses.
3. Finally, another great strategy to make your money last longer may not be very appealing, but it's quite powerful. Work longer. If you're planning to retire at 62 or 65, consider working a few more years, which can be a big benefit. You keep saving and investing money for retirement, so you put off drawing from your nest egg, making it bigger. Delaying retirement can also be beneficial with Social Security—the later you start collecting up to age 70, the larger your ultimate checks will be.
Reference: The Motley Fool (April 10, 2016) "3 Easy Moves to Make Your Money Last Your Lifetime"

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