When it comes to retirement distributions, 401(k)s lack valuable flexibility A 401(k) plan offers less flexibility than an IRA for retirement savers taking distributions, according to this article on Morningstar. The withdrawal options for 401(k) participants are limited to taking a lump-sum distribution, buying an income annuity and taking their 401(k) distributions in installments. 401(k) withdrawals are also governed by pro-rata rules. Unlike a 401(k) plan, an IRA is not subject to these rules, allowing investors to make withdrawals that conform to their portfolio strategy.

Home sharing has real benefits for retirees Retirees with limited income may want to consider renting out a portion of their house to help cover their expenses, according to this article on MarketWatch. This option is also recommended to seniors who wish to stay in their home after retirement and don't want to downsize. Another benefit of house-sharing is the help that they can get around the house, which they will need as they get old and become physically unable to do some household tasks.

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