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LearnFAQGeneral Financial Wellness

What are the key financial moves in the first few years of retirement?

Answer

The early retirement years set the tone for everything after, so protect against sequence-of-returns risk — the danger of big losses while you're withdrawing. Keep a cash cushion of one to three years of spending so you never sell stocks in a downturn to pay bills. Set a sustainable withdrawal rate (many planners start near 4% of the portfolio, adjusted for inflation) and revisit it yearly. Coordinate Social Security, pensions, and portfolio withdrawals tax-efficiently, often spending taxable accounts first while letting Roth grow. Watch health-care costs and consider Roth conversions before required minimum distributions hit at 73. Do an annual review to stay on track. The tool at wealthserene.com/tools/retirement-planner helps you stress-test the plan.

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