Financial Advisors, myself included, spend a lot of time thinking and talking about investing money to have available for your Golden Years (had to get a cliché in). But, not a lot of time is spent talking about how to best spend that money in retirement. I'm not talking about what you will spend that money on. That is up to you. What I am talking about is where the funds will come from. If you have multiple sources of retirement income, you can improve your results about thinking about which money you will spend first. This is due to a very important acronym...RMD. Required Minimum Distributions can significantly impact your tax picture and how much you will pay for medical care in retirement. Let me explain.
You've decided to "Hang-up" your G-Suit or ABUs or whatever uniform you wear to work each day. You're pretty confident you'll roll into the new job you've been looking forward to and it won't take too much time. If your new job offers a 401(k) (or 403(b) or TSP) there are some things you need to think about AND you need to make sure you don't screw up some other things. By the way, these concepts also apply if you change civilian jobs during a year.
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