{"id":2648,"date":"2017-06-01T12:10:21","date_gmt":"2017-06-01T16:10:21","guid":{"rendered":"https:\/\/blog.bradpine.com\/?p=2648"},"modified":"2019-06-12T11:24:34","modified_gmt":"2019-06-12T15:24:34","slug":"how-to-generate-income-in-retirement","status":"publish","type":"post","link":"https:\/\/blog.bradpine.com\/2017\/06\/01\/how-to-generate-income-in-retirement\/","title":{"rendered":"How to Generate Income in Retirement"},"content":{"rendered":"<h4><img decoding=\"async\" loading=\"lazy\" class=\"alignleft size-medium wp-image-2649\" src=\"https:\/\/blog.bradpine.com\/wp-content\/uploads\/2017\/06\/Bradford-Pine-Wealth-Group-Garden-City-New-York-Wealth-income-in-retirement-300x300.png\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/blog.bradpine.com\/wp-content\/uploads\/2017\/06\/Bradford-Pine-Wealth-Group-Garden-City-New-York-Wealth-income-in-retirement-300x300.png 300w, https:\/\/blog.bradpine.com\/wp-content\/uploads\/2017\/06\/Bradford-Pine-Wealth-Group-Garden-City-New-York-Wealth-income-in-retirement-150x150.png 150w, https:\/\/blog.bradpine.com\/wp-content\/uploads\/2017\/06\/Bradford-Pine-Wealth-Group-Garden-City-New-York-Wealth-income-in-retirement-768x768.png 768w, https:\/\/blog.bradpine.com\/wp-content\/uploads\/2017\/06\/Bradford-Pine-Wealth-Group-Garden-City-New-York-Wealth-income-in-retirement-1024x1024.png 1024w, https:\/\/blog.bradpine.com\/wp-content\/uploads\/2017\/06\/Bradford-Pine-Wealth-Group-Garden-City-New-York-Wealth-income-in-retirement.png 1200w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>As anyone trying to choose a Medicare plan can tell you, transitioning into retirement isn\u2019t as straightforward as it looks. There are a lot of decisions to make, and most of them don\u2019t have easy answers.<\/h4>\n<h4>One of the biggest issues in transitioning to retirement is income planning. How can you plan your income in a way that\u2019s simple, sufficient, and sustainable? The answer is that it requires balancing investment risk, longevity, and your lifestyle \u2013not an easy process for most people.<\/h4>\n<h4>Here\u2019s how to start \u2013 <em>and <\/em>how to tackle one of the toughest aspects of retirement planning: your investment accounts.<\/h4>\n<h2><span style=\"color: #000080;\"><strong>Make some estimates about what you need<\/strong><\/span><\/h2>\n<h4>Having a budget in place is the cornerstone of retirement planning. Start the process by determining your expenses: you can use my Bradford Pine Wealth Group <a href=\"https:\/\/blog.bradpine.com\/wp-content\/uploads\/2019\/06\/Expense-Analysis-Worksheet-BPWG.xls\" target=\"_blank\" rel=\"noopener noreferrer\">spreadsheet<\/a> to run your numbers.<\/h4>\n<h4>Once you have an idea of your current budget, make a few tweaks by considering the following retirement-specific issues:<\/h4>\n<ul>\n<li>\n<h4><strong>Your lifestyle plans:<\/strong> Whether you\u2019ll be traveling extensively or settling down in a cheaper part of the country, think about how your plans can affect your expenses.<\/h4>\n<\/li>\n<li>\n<h4><strong>Your life expectancy: <\/strong>This is obviously an unknown, but that doesn\u2019t mean you shouldn\u2019t be thinking about it. These days, the average 65-year old will live almost 20 years. But that\u2019s just an average: if you\u2019re a 65-year old man, you have a 25% chance of living to 93 \u2013 for women, you have a 25% chance of living until you\u2019re 96.<\/h4>\n<\/li>\n<li>\n<h4><strong>Healthcare:<\/strong> Do not fall into the trap of thinking you\u2019ll just be paying Medicare premiums for the rest of your life. Long-term care, costly prescription drugs, and hefty out-of-pocket expenses are commonplace for retirees \u2013 make sure to account for higher health costs in your budget.<\/h4>\n<\/li>\n<li>\n<h4><strong>Taxes:<\/strong> It is not rare for people to come up with a budget and retirement savings withdrawal plan only to realize they forgot about accounting for taxes. Make sure they\u2019re part of your plan.<\/h4>\n<\/li>\n<li>\n<h4><strong>Inflation:<\/strong> Even when it comes to normal everyday expenses, it\u2019s a mistake to think that you\u2019ll need the same dollar amount year after year. Even when inflation is low, its effects are insidious \u2013 especially over the course of a couple of decades. Read this <a href=\"https:\/\/blog.bradpine.com\/2013\/07\/30\/could-inflation-put-you-in-the-poorhouse\/\" target=\"_blank\" rel=\"noopener noreferrer\">blog post<\/a> for more.<\/h4>\n<\/li>\n<\/ul>\n<h4>Once you build some estimates around your lifestyle costs and how they can change, you\u2019re ready to start strategizing for your income.<\/h4>\n<h2><span style=\"color: #000080;\"><strong>Compiling your income sources<\/strong><\/span><\/h2>\n<h4><strong>\u00a0<\/strong>Most retirees get their incomes from a combination of:<\/h4>\n<ul>\n<li>\n<h4>Social Security <a href=\"https:\/\/blog.bradpine.com\/2016\/11\/01\/social-security-delay-or-hit-go\/\" target=\"_blank\" rel=\"noopener noreferrer\">benefits<\/a><\/h4>\n<\/li>\n<li>\n<h4>Workplace pension plans or annuities<\/h4>\n<\/li>\n<li>\n<h4>Qualified retirement accounts and other financial investments<\/h4>\n<\/li>\n<li>\n<h4>Income-generating investments such as property or a privately-held business<\/h4>\n<\/li>\n<li>\n<h4>Work, such as a part-time job, consulting, or an income-generating hobby<\/h4>\n<\/li>\n<\/ul>\n<h4>Some income sources are set in stone or otherwise guaranteed. For others, you may have a lot of discretion about how much to take or when.<\/h4>\n<h4>The key here is to think about how your \u201cguaranteed\u201d or stable income sources relate to your budget. Are they enough? Will you need to supplement them with money from your investment accounts?<\/h4>\n<h4>If so, you\u2019re facing a question posed by many, if not most, new retirees: how am I<\/h4>\n<h4>supposed to manage my retirement savings for the long haul?<\/h4>\n<h2><strong><span style=\"color: #000080;\">Managing retirement savings<\/span><br \/>\n<\/strong><\/h2>\n<h4>Retirees face a tough decision-making process when it comes to their financial assets. On the one hand, you likely want to be able to generate income for as long as possible. On the other hand, you probably want to know that your savings are safe.<\/h4>\n<h4>To balance these competing priorities, you may need to take on more investment risk than you were expecting.<\/h4>\n<h4>Think about it this way: if your investments are growing at a low but steady rate that just barely keeps up with inflation, you won\u2019t see your investment returns fluctuate much, but you\u2019ll be losing money every year with account withdrawals. In other words, <u>there is a real risk that you\u2019ll outlive your assets<\/u>.<\/h4>\n<h4>If you take on more investment risk, you are more likely to achieve higher long-term growth \u2013 that means you\u2019ll be less likely to outlive your savings. Of course, that benefit comes at a cost: higher investment account volatility and a greater chance of losing some principal in down markets.<\/h4>\n<h4>So what\u2019s the magic number to balance these risks?<\/h4>\n<h4>Unfortunately, there isn\u2019t one. For my clients, I recommend a diversified approach that uses investments suited for each client\u2019s needs: <u>the specific allocation always depends on the client. <\/u><\/h4>\n<h4>The most suitable investment allocation <u>for you<\/u> depends on a number of financial and personal factors. Think about things like:<\/h4>\n<ul>\n<li>\n<h4>How much you\u2019ll need to rely on your investment accounts for income.<\/h4>\n<\/li>\n<li>\n<h4>The stability of your other income sources.<\/h4>\n<\/li>\n<li>\n<h4>Your lifestyle and anticipated longevity.<\/h4>\n<\/li>\n<\/ul>\n<h2><span style=\"color: #000080;\"><strong>Isn\u2019t there an easier way? <\/strong><\/span><\/h2>\n<h4>These decisions are complex for a simple reason: every financial picture and personal situation is different and always changing. The risks you face aren\u2019t necessarily the risks your neighbor is facing because you might have different financial resources, different retirement risks, and different lives.<\/h4>\n<h4>That said, the issues I\u2019ve raised here are some of the most common ones \u2013 and you should take the time to think about them. Preferably today. After all, one of the <a href=\"https:\/\/blog.bradpine.com\/2012\/05\/31\/the-biggest-risk-facing-your-retirement-procrastination\/\" target=\"_blank\" rel=\"noopener noreferrer\">biggest risks<\/a> we face in financial planning is simple procrastination.<\/h4>\n<h4>Of course, sometimes the answers are difficult to get to. If you\u2019re struggling to come up with a plan that makes you feel empowered and confident, please consider speaking to a qualified financial advisor. Working with a professional can make it easier to tackle these issues methodically and objectively.<\/h4>\n<h4>What\u2019s worrying you most about retirement? I\u2019d love to hear what\u2019s on your mind as you start on your own journey.<\/h4>\n<h4><\/h4>\n<h4><em>Written by <a href=\"http:\/\/www.bradfordpinewealth.com\/About-Bradford-Pine.5.htm\" target=\"_blank\" rel=\"noopener noreferrer\">Bradford Pine<\/a> with Anna B. Wroblewska<\/em><\/h4>\n<p>Source:<\/p>\n<p>Life Expectancy <a href=\"http:\/\/www.cnbc.com\/2017\/03\/17\/how-to-make-sure-you-have-enough-money-in-retirement.html\" target=\"_blank\" rel=\"noopener noreferrer\">http:\/\/www.cnbc.com\/2017\/03\/17\/how-to-make-sure-you-have-enough-money-in-retirement.html<\/a><\/p>\n<p>Chance of exceeding age 90: <a href=\"https:\/\/www.usatoday.com\/story\/money\/columnist\/powell\/2016\/10\/05\/life-expectancy-actuaries-live-die-retire-retirement\/89407296\/\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.usatoday.com\/story\/money\/columnist\/powell\/2016\/10\/05\/life-expectancy-actuaries-live-die-retire-retirement\/89407296\/<\/a><\/p>\n<p><span class=\"embed-youtube\" style=\"text-align:center; display: block;\"><iframe loading=\"lazy\" class=\"youtube-player\" width=\"600\" height=\"338\" src=\"https:\/\/www.youtube.com\/embed\/6RwE-Gw_E-s?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en-US&#038;autohide=2&#038;wmode=transparent\" allowfullscreen=\"true\" style=\"border:0;\" sandbox=\"allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox\"><\/iframe><\/span><\/p>\n<p>To learn about retirement savings, download my free eBook, \u201c<a href=\"..\/..\/..\/..\/..\/10-tips-you-need-to-know-about-your-ira-rollover\/\" target=\"_blank\" rel=\"noopener noreferrer\">10 Tips You Need to Know About Your IRA Rollover<\/a>.\u201d This short book is packed with critical information that will help you make the right decisions about your retirement savings.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As anyone trying to choose a Medicare plan can tell you, transitioning into retirement isn\u2019t as straightforward as it looks. There are a lot of decisions to make, and most of them don\u2019t have easy answers. One of the biggest issues in transitioning to retirement is income planning. How can you plan your income in [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[13],"tags":[207,456,608,501,500,427,1122],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2p1nA-GI","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2652,"url":"https:\/\/blog.bradpine.com\/2017\/09\/13\/learn-about-retirement-from-these-pro-athlete-mistakes\/","url_meta":{"origin":2648,"position":0},"title":"Learn About Retirement From These Pro Athlete Mistakes","author":"Bradford Pine","date":"September 13, 2017","format":false,"excerpt":"The typical retirement planning story that we read about in the financial news involves a Baby Boomer looking to make the right choices at the end of a 35-year (or longer) career. We read them because most of us can probably relate to them. But we can also learn a\u2026","rel":"","context":"In &quot;Retirement Planning&quot;","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.bradpine.com\/wp-content\/uploads\/2017\/08\/Bradford-Pine-Wealth-Group-Wealth-Advisor-Garden-City-NY-retirement-mistakes-300x200.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":262,"url":"https:\/\/blog.bradpine.com\/2010\/09\/01\/262\/","url_meta":{"origin":2648,"position":1},"title":"Are You Ready to Retire?","author":"Bradford Pine","date":"September 1, 2010","format":false,"excerpt":"Ask anyone if they\u2019re ready for retirement, particularly after a difficult day, and you will likely hear an immediate \u201cYes!\u201d But when it comes time to seriously consider the issue, the question of readiness becomes much more difficult. How much should I draw from my IRA or 401(k)? At what\u2026","rel":"","context":"In &quot;Retirement Planning&quot;","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":678,"url":"https:\/\/blog.bradpine.com\/2011\/03\/16\/theres-still-time-to-contribute-to-an-ira-for-2010\/","url_meta":{"origin":2648,"position":2},"title":"There&#8217;s Still Time to Contribute to an IRA for 2010","author":"Bradford Pine","date":"March 16, 2011","format":false,"excerpt":"\ufeff There's still time to make a regular IRA contribution for 2010! You have until your tax return due date (not including extensions) to contribute up to $5,000 for 2010 ($6,000 if you were age 50 by December 31, 2010). Normally, your tax return must be filed by April 15.\u2026","rel":"","context":"In &quot;Retirement Planning&quot;","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2593,"url":"https:\/\/blog.bradpine.com\/2016\/11\/01\/social-security-delay-or-hit-go\/","url_meta":{"origin":2648,"position":3},"title":"Social Security: Delay or Hit Go?","author":"Bradford Pine","date":"November 1, 2016","format":false,"excerpt":"Pre-retirees spend a lot of time planning their investments, budgets, and lifestyles for the transition to retirement. But Social Security is just as important, if not more so, and by making the most of it you could significantly boost your retirement income. But how do you do it? The biggest\u2026","rel":"","context":"In &quot;Social Security&quot;","block_context":{"text":"Social Security","link":"https:\/\/blog.bradpine.com\/category\/social-security\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.bradpine.com\/wp-content\/uploads\/2016\/11\/Social-Security-Benefits-300x300.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":154,"url":"https:\/\/blog.bradpine.com\/2010\/07\/07\/early-distributions-from-your-ira-rollover\/","url_meta":{"origin":2648,"position":4},"title":"Possibilities and Pitfalls: Early Distributions From Your IRA Rollover","author":"Bradford Pine","date":"July 7, 2010","format":false,"excerpt":"Here at the Bradford Pine Wealth Group, we believe in educating and informing our clients. In addition to providing guidance on investment options and strategies, we feel it\u2019s important to include insight on the nuts and bolts of account management.\u00a0 One area that people generally don\u2019t know about is the\u2026","rel":"","context":"In &quot;Retirement Planning&quot;","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2823,"url":"https:\/\/blog.bradpine.com\/2023\/10\/13\/the-replacement-ratio-method-how-much-income-do-you-really-need-in-retirement\/","url_meta":{"origin":2648,"position":5},"title":"The Replacement Ratio Method: How Much Income Do You Really Need in Retirement?","author":"Bradford Pine","date":"October 13, 2023","format":false,"excerpt":"Retirement planning can seem daunting, but there are easy techniques to estimate your retirement income. One of these methods is the replacement ratio, a simple calculation that provides valuable insights into your financial situation after retirement. In this blog post, we will explore everything you need to know about the\u2026","rel":"","context":"In &quot;Retirement Planning&quot;","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"expense analysis","src":"https:\/\/i0.wp.com\/blog.bradpine.com\/wp-content\/uploads\/2023\/10\/BPWG_Expense-Analysis-Worksheet-pdf.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/blog.bradpine.com\/wp-content\/uploads\/2023\/10\/BPWG_Expense-Analysis-Worksheet-pdf.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/blog.bradpine.com\/wp-content\/uploads\/2023\/10\/BPWG_Expense-Analysis-Worksheet-pdf.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/blog.bradpine.com\/wp-content\/uploads\/2023\/10\/BPWG_Expense-Analysis-Worksheet-pdf.png?resize=700%2C400&ssl=1 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/posts\/2648"}],"collection":[{"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/comments?post=2648"}],"version-history":[{"count":1,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/posts\/2648\/revisions"}],"predecessor-version":[{"id":2728,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/posts\/2648\/revisions\/2728"}],"wp:attachment":[{"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/media?parent=2648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/categories?post=2648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/tags?post=2648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}