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In retirement

Your priorities — and spending — will likely change as you move through retirement. A key goal is making sure your nest egg lasts, which brings its own set of planning considerations.

Managing your cash flow

Without a paycheck, you'll need to rely on other sources of income, most notably your savings and investments. Sticking to a budget has probably never been more important. Many of us will live 20 to 30 years in retirement, so it's important to keep a close eye on your spending.
Click through to learn more about what to look for as you monitor your finances. To help you keep track of your expenses and make every dollar count, use the Bank of America Spending & Budgeting tool.
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Interest rate trends & market moves

Interest rate trends and market movers may result in an increase or decrease in income from your savings and investments

Did you know?

Depending on your age and priorities, your income needs and spending will likely change as you move through retirement. Here's what you need to plan for.

It's important to develop a thoughtful withdrawal strategy

Retirement income can come from a number of different sources, in addition to Social Security, it may include pension and retirement accounts — such as traditional or Roth 401(k) or 403(b) plan accounts and traditional and Roth IRAs.
When thinking about IRAs, you must consider RMDsFootnote 1 (required minimum distributions). Calculating RMDs can be tricky, especially if you have several retirement accounts. And you may be subject to an additional federal tax on the amount of missed or insufficient RMDs.
Click through these tips for more insights.
Different types of retirement income have their own tax treatments. Remember, every financial situation is unique, so you may wish to consult with a tax and/or legal advisor to get help.
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Use the calendar to your advantage

You generally can start taking withdrawals from an IRA or other qualified retirement plan accounts as soon as you turn 59½ without incurring a 10% additional federal tax for early withdrawals. Waiting longer could mean a larger nest egg to draw upon. Once you begin taking RMDs, you are required to take an RMD every year.

Did you know?

We have a Required Minimum Distribution Calculator that can help you calculate your RMDs. Try the tool.

Rules for investing in retirement

Investing in retirement isn't the same as investing for retirement. All the strategies you used to help you accumulate enough for retirement will likely need adjusting as you approach and enter the next chapter of your life.
Managing your portfolio after you retire takes careful planning and regular monitoring.
What's IN, what's OUT
AFTER YOU RETIRE
Consider making these adjustments
IN
  • A more balanced asset allocation
  • Sustainable withdrawal strategies
  • Quarterly portfolio reviews
OUT
  • 100% stocks, bonds or cash
  • Overspending
  • Set it and forget it

Don't forget

A Merrill advisor can help you develop or refine your plan — connect with one today. Schedule an appointment. You also have access to ongoing market updates and investing insights from Merrill. Learn more

How to help ensure a successful legacy transfer

There may come a time when managing your finances becomes a burden, or you are unable to manage them yourself. Decide in advance who you would want to take control of your financial matters or consider hiring a professional money manager to handle your financial affairs.
Create and maintain legal documents that outline your wishes and priorities — e.g., a power of attorney for finance and healthcare and a living will.
Click through the steps to learn details about each one .
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Think about what matters

Your legacy might include financial assets or real estate, personal possessions with emotional value or non-financial aspects such as a sense of ethics, morality, faith or family tradition.

Did you know?

Trusts are not just for the wealthy. More Americans are discovering the potential of a trust to help protect assets and reduce taxes. Learn more

Estimating your federal estate tax bill

Estate tax is paid on the amount of the current net value of all your assets that exceed your remaining federal estate tax exemption at the time of death.
Our calculator can help your estimate what your estate tax liability may be. However, you should consult with a legal tax advisor.
For illustrative purpose only.Footnote 1
Images from the Estate Tax Calculator
All tax calculations herein are merely estimates and should not be relied upon for detailed tax planning purposes. State income taxes are based on flat tax rates and do not take all the details of a state's income tax laws into account.

Did you know?

The federal estate exemption was $12.92 million in 2023, increasing to $13.61 million in 2024. See our resource for annual tax and financial planning (PDF)
Investing involves risk including possible loss of principal. Past performance is no guarantee of future results.

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Footnote 1 Effective 1/1/2023, the required beginning date is April 1 of the year after you turn age 73. You are required to take an RMD by December 31 each year after that. If you delay your first RMD until April 1 in the year after you turn 73, you will be required to take two RMDs in that year. You may be subject to additional taxes if RMDs are missed. Please see your tax advisor regarding your specific situation.

Footnote 
Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.
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Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.
Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (PDF).

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member Securities Investor Protection (SIPC) popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp").
Merrill Lynch Life Agency Inc. (MLLA) is a licensed insurance agency and wholly owned subsidiary of BofA Corp.

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Investment products offered through MLPF&S and insurance and annuity products offered through MLLA:
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