Maintaining income after retirement

How your retirement savings can continue working for you.

You’ve spent many years saving in preparation for retirement. You’ve planned strategically to get here and have secured the resources necessary to help ensure lasting comfort for yourself and your family.

Now that you’ve arrived, there are still decisions to be made regarding how to turn your retirement savings into retirement income. Just because you’ve begun withdrawing does not mean you must stop earning.

Here are some of the ways you can put your retirement savings to work.

Invest

This one probably seems rather obvious, but turning savings and fixed income into variable income requires a special balance that is unique to your situation. Investing in retirement can come with some risks and caveats that are important to consider – talking with your financial advisor can help you determine what’s right for you and choose among options such as retirement income funds, real estate investment trusts, annuities and more.

Reserve

Preserving what you have can be as important as earning. Placing resources in a cash reserve can ensure that you have access to easily withdrawable short-term liquidity. These funds can be shielded from the effects of market declines while still gaining interest through low-risk money markets. Safeguarding immediate funds from volatility can allow your larger retirement savings to recover from changes in the market without restricting cash flow.

Work

Yes, you read that correctly. Retirement doesn’t have to mean the absence of work entirely. Rather, it can be an opportunity to maintain an active lifestyle and pursue passions you were unable to explore throughout your career. By investing your time in something you love, you can secure supplemental income and experience things that you may have always yearned for but did not necessarily have time to enjoy.

Next Steps:

Your days of earning are far from over. Keep these tips in mind to help maximize your retirement income:

• Work closely with your financial advisor to keep your investment strategies aligned with all the changes in your life, even if everything is going according to plan. Your advisor is here to help you enjoy your retirement and minimize the burden of financial uncertainty.
• Don’t lose sight of what you need now and ensure that no matter what your strategy is for your savings, you always have access to enough funds available for withdrawal.
• Keep track of where your assets are and make sure that you strike a balance between long-term gains and short-term liquidity to both prolong the lifespan of your savings and meet your immediate needs.

Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation.