Make a plan for what is coming:

1. Make a budget. Manage your cash flow and expenses.
2. Is your housing right? Nothing affects your finances as much as housing.
3. Be prepared for unexpected expenses. Research long-term care, disability, and life insurance.

Know your options:

Once you reach age 59 ½, you can withdraw money from your 401(k) without incurring the 10% early withdrawal penalty. You can roll it into an IRA (Individual Retirement Account), take the money as a lump sum (and pay income taxes on it), buy an annuity, or leave the money in the plan to continue to grow.

When you reach age 70 ½, you must start taking distributions each year, unless you still work for the employer that offers the plan. These are called “required minimum distributions” (RMDs).