Explore Retirement Income Options
June 23, 2022
Your retirement savings can be compared to a faucet that you will have to turn on once you retire in order to provide a steady stream of income. But you could be left high and dry if there is not enough income to last you through retirement. That’s why it’s so important that you explore every source of income available to you before you reach that milestone.
“Beyond Social Security and pensions, a number of instruments can be used to create retirement income. Which one you use will depend upon your specific goals.”1
Here are some examples of various retirement income sources:
Interest and Dividends: The benefit of this source is that investors can expect to receive a stated consistent monthly or quarterly payment using an instrument like dividend-paying stocks, closed-end funds (CEFs) or exchange-traded funds (ETFs) with a long-term track record.1
Bond Ladder: This strategy involves building a portfolio of multiple individual bonds that mature at varied stepped dates, often annually.1
Certificate of Deposit (CD) Ladder: Similar to a bond ladder, this type of investment involves purchasing multiple certificates of deposit with stepped maturity dates.1
Immediate Annuities: There are various types of annuities that work differently, but with immediate annuities that are backed by an insurance company, you pay a lump sum in exchange for a guaranteed payment that starts immediately.1
Managed Payout: A managed payout fund is also known as a Retirement Income Fund (RIF), income replacement fund, or monthly income fund. 1
Real Estate Investment Trusts (REIT): A REIT is a company that owns or invests in income-producing real estate and allows individuals to invest in large-scale commercial real estate or real estate loans. 1
Part-Time Income: Not everyone is fully ready for retirement, and work can offer a sense of self-worth. The additional income can help hedge against inflation by covering expenses during a down market instead of selling investments at a loss to pay the bills.1
Alternative Investments: These investments do not fit into the traditional equity, fixed income or cash options. For this purpose, they generally consist of private equity, venture capital, hedge funds, commodities, tangible assets and real property.1
To get started with your income strategy, contact us to schedule time to speak with one of our financial professionals.