Sources of income in retirement

Income sources in retirement - Matter what combination of the above solutions (or other income sources, such as part-time work or rental income) you choose to meet your retirement income needs, it is important to be flexible in putting together your retirement plan because expenses, market returns, and income sources can all vary considerably over what could be decades of your life. You don't expect to receive social security benefits and pension plan payments, or if these amounts won't cover your essential living expenses, you can secure a lifetime income source by converting a portion of your investments into an annuity. The surest (but typically most expensive) way to use home equity as an income source is to take out a reverse mortgage on your home, which will guarantee you a set payment for as long as you live in the house. Although there is a higher risk of lost principal than with annuities and fixed income, the benefit of a diversified portfolio is that it helps you outpace inflation and can improve the chances that you won't run out of money.

Sources of Retirement Income

The paychecks may end with retirement, but the household bills won't. You'll need a plan to turn your savings into a retirement ...