Make sure your life, health, homeowners, and auto coverage still matches the stage of life you are actually in. You might need to adjust life insurance to line up with your estate plan, or discover that your health plan no longer covers a prescription you rely on. Knowing what you have, and what you still need, well ahead of time is what saves you the sleepless nights later.

We go deeper on protecting against the big, unexpected events on our Catastrophic Risk & Insurance page.

You have probably heard the old advice: do not put all your eggs in one basket. Chances are you followed it, and now your money is spread across a bank account here, a 401(k) from an old job there, plus maybe a 403(b), a Roth or Traditional IRA, a SEP IRA, and a money market account. That is healthy diversification, but it is hard to manage when it lands on five different statements. Part of what we do is help you bring those accounts together into one clear picture, so your income shows up in the bank on time and you are not chasing paperwork to confirm every deposit.

What to do with an old 401(k)

When you change jobs or retire, an old 401(k) does not have to move, but you do have a decision to make. In most cases you have four choices, and each carries real trade-offs:

• Leave it in your former employer's plan, if the plan allows it.
• Roll it into your new employer's plan, if that plan accepts transfers.
• Roll it into an Individual Retirement Account (IRA), which usually opens up a wider range of investment choices.
• Cash it out, which is almost always the most expensive path: it generally triggers income tax, plus a 10% penalty if you are under 59½.

The right choice depends on the details, and the details matter more than people expect:

• Taxes on a cash-out add up fast. Take $50,000 out of an old 401(k) before 59½ and you could lose roughly a third of it: federal income tax at your bracket, a 10% early-withdrawal penalty, and state tax on top. What feels like a windfall often is not.
• Creditor protection is not the same everywhere. Money left in a 401(k) has strong federal protection from creditors. Once it moves to an IRA, how well it is protected depends on your state's laws. If that matters for you, it is worth checking before you move anything.
• Company stock deserves special care. If your 401(k) holds shares of your employer, a rule called Net Unrealized Appreciation can offer real tax savings, and a routine rollover can accidentally throw it away. Flag it before you roll anything over.
• Fees and choices vary widely. Some old plans have excellent, low-cost funds; others are expensive and limited. An IRA usually opens up more options, but more is only better when it actually fits your plan.

Consolidating old accounts often makes life simpler and your plan easier to manage, but simpler is not automatically better for everyone. It has to be right for you.

It is worth knowing that the rules here have tightened. When a financial professional recommends moving money out of a 401(k), that recommendation is held to a best-interest standard, meaning the reasons have to be documented and genuinely in your interest, not the advisor's. That protection is a good thing, and it is exactly how it should work.

Turning savings into a paycheck you cannot outlive

Traditional pensions are fading, and the ones that remain often force a single, irreversible choice. Meanwhile many people retire with savings but no guaranteed paycheck beyond Social Security. If a steady, predictable income is what you are after, there are a few ways to build one, depending on where your money sits today:

• 1035 exchange: if you already own an annuity or a cash-value life insurance policy, Section 1035 of the tax code lets you exchange it for a more suitable annuity without triggering tax on the gains.
• Rollover: money from an old 401(k), 403(b), or IRA can be rolled into an IRA that funds a lifetime-income strategy, while keeping its tax-deferred status.
• Build your own pension: a variable annuity with an optional income rider can turn a lump sum into payments designed to last as long as you live. In effect, a personal pension you create for yourself.

The "build your own pension" idea is worth understanding, because it is often misunderstood. With an optional income rider (sometimes called a guaranteed lifetime withdrawal benefit), you keep your account and stay invested, but the insurance company guarantees you can withdraw a set percentage every year for the rest of your life, even if the market falls and your account value drops. In exchange, you pay an annual fee for that rider. It can be a way to put a floor under your income without handing over your whole nest egg, but the fee and the fine print are exactly why it deserves a careful look.

A word of honesty, because these products are sometimes oversold. A variable annuity is a long-term investment. Its value moves with the markets, it carries fees and often surrender charges if you take money out early, and any income guarantee depends on the financial strength of the insurance company that issues it, not the government. In the right situation it is a genuinely useful tool. In the wrong one it is an expensive mistake. That is why this deserves a real conversation about your goals, not a sales pitch.

Variable annuities are long-term, tax-deferred investment vehicles designed for retirement and contain both an investment and an insurance component. They are sold by prospectus and carry fees and charges, including mortality and expense charges, administrative fees, and the cost of any optional riders. Any guarantees are based on the claims-paying ability of the issuing insurance company. Withdrawals may be subject to surrender charges and, if taken before age 59½, a 10% federal tax penalty may apply. Consider the investment objectives, risks, charges, and expenses carefully before investing. This page is educational and is not a recommendation of any specific product or strategy.

Required Minimum Distributions

Once you reach a certain age, the government requires you to start withdrawing from tax-deferred accounts like traditional IRAs and 401(k)s. That withdrawal is called a Required Minimum Distribution, or RMD. Under current law RMDs begin at age 73, and that starting age is scheduled to rise to 75 in 2033. Roth IRAs are not subject to RMDs during your lifetime, which is one reason they can be such a useful planning tool.

Here is how it works in practice. Each year the amount is figured by taking your account balance at the end of the prior year and dividing it by a life-expectancy factor from an IRS table, so the required amount changes every year. Your very first RMD can be delayed to April 1 of the year after you turn 73, but if you wait, you take two in the same year, which can spike your taxes. One more wrinkle: you can add up your IRAs and take the total from any one of them, but 401(k) accounts generally each have to pay out on their own.

Missing one is costly, since the penalty is a share of what you should have taken, so the dates matter. And a large RMD can ripple outward: it can push you into a higher tax bracket, increase the taxable portion of your Social Security, and even raise your Medicare premiums. Planning ahead, by drawing certain accounts down earlier, converting to a Roth in lower-income years, or giving directly to charity from your IRA through a Qualified Charitable Distribution, can soften the hit. The goal is not just to take the RMD. It is to take it in the way that costs you the least over the length of your retirement.

RMD ages and rules are set by federal law and are subject to change. This is educational information, not tax advice. Please consult a qualified tax professional about your specific situation.

Even in retirement, life throws curveballs, so we recommend keeping an emergency fund: a readily available account holding roughly six to twelve months of expenses. Having that cushion means an unexpected cost does not force you to sell long-term investments at a bad time or reach for a high-interest loan that pulls you deeper into debt.

In retirement an emergency fund does double duty. When markets are down, it gives you a place to draw income from while your invested money has time to recover, which is one of the simplest ways to protect a portfolio from a bad year early in retirement. See our Emergency Fund page for how to size and set one up.