If your life insurance policy goes up after you turn 60, you may wonder if it’s still something worth paying for. Or maybe you’ve just received an inheritance and don’t know what to expect when it comes to taxes. Eric answers three questions from the mailbag this week.

Whether you are reconsidering your life insurance policy or calculating how much to take out of your IRA in retirement, there’s always a lot to consider. In today’s episode of the Retirement Ready podcast, Eric answers three questions from the mailbag that help shape your financial strategy.

Meg in Des Moines asks what the current recommended IRA withdrawal rate is. Eric says the old rule of thumb was not taking out more than four percent to keep from running out of money. That said, it really should come down to your own situation. Make a plan each year that can factor in how much you need to take and then things like home improvements or vacations.

Danny in Waukee has had the same life insurance policy for years but it’s gotten more expensive since turning 60. Should he drop the policy? Eric explains some of the benefits of having life insurance and the way to go about it. Talk with your advisor to create a strategy around your life insurance plans.

Sally in Indianola recently received an inheritance of about 400,000, some in an IRA, some in stocks, some in annuities. How will each of these items be taxed? It’s important to work with a professional to plan for the taxes before you claim these assets. For instance, the SECURE Act put some time restrictions on when you withdraw the funds from the IRA. The annuities and stocks have different rules regarding taxes and what options you have.

Listen to the full episode or click on the timestamps below to hear Eric’s answers to this week’s questions from the mailbag.

0:47 – Mailbag: What is the recommended IRA withdrawal rate?

1:28 – The old rule of thumb was four percent.

4:19 – Mailbag: When a life insurance policy keeps increasing in price, should you drop it?

6:57 – Mailbag: How will an inheritance made up of stocks, annuities, and an IRA be taxed?