When thinking about retirement income planning at a high level, it boils down to two main considerations: what are your retirement income sources, and what are your retirement income needs? Answering these questions is an important first step towards creating your retirement income strategy.
What are Your Retirement Income Sources?
We’ve written before about potential strategies to maximize social security payments, which can help to provide a supplemental boost to your retirement income.
But for many investors, a main source of retirement income comes from their investment portfolios. Dividend paying stocks, dividend focused portfolio strategies, fixed income allocations, or selling stocks/portfolio holdings to raise cash are all ways investors can generate income in their investment portfolio.
What are Your Retirement Income Needs?
Your retirement income needs include the basics like monthly expenses and how they could change over time. They also include rising healthcare costs, inflation expectations over time, varying life expectancies, one-time expenses that may surface later in life, and other variables that may lead to changing income needs. It’s also important to factor in how long you’ll have these needs.
We believe it’s important to work with a financial advisor to create your retirement income strategy, as they can help determine your future needs which can provide information about how to position your portfolio today. Your financial advisor may also be able to run different simulations that can give you an idea of how spending habits can impact your portfolio over time.
WrapManager Can Help With Your Retirement Income Planning
The Wealth Managers at WrapManager are happy to assist you with your retirement income planning, and we can create an investment plan for you to demonstrate how spending patterns in retirement can affect a portfolio over time. If you’d like for us to analyze your current portfolio and discuss your retirement income goals with us, please give us a call at 1-800-541-7774 today.
