Market volatility and the uncertainty in the economy have people worried about the stability of their retirement income. When markets are rising, the income dilemma is easier to manage. But what happens when the market is going down or sideways?
Many retirees and future retirees ask, “Will My Retirement Income be able to support my lifestyle?”
Retirement is different than when you are working. Both for your taxes and your investments. You no longer have the steady paycheck to count on. You are relying on Social Security, maybe a pension, and your investments.
When you are working, your investments have one job: To Grow. So, the more you save and the better your returns, the quicker you will get to your retirement goal. But in retirement, it’s more complex because your investments must grow, support your lifestyle, and pay taxes.
This can be a challenge in good markets, but what happens in down markets? We will show you 3 ways to create consistent income streams that can help you in all the market conditions
Questions you may ask yourself:
- Will my income be affected when the market drops?
- Can I maintain my lifestyle even when the economy is struggling?
- How do I stabilize my cashflow when markets are volatile?
- Will my spouse be ok when I’m gone?
Maximize My Social Security
For many, Social Security is the largest source of guaranteed, inflation adjusted lifetime income you will receive. And there is a lot of information on the internet that is confusing and inaccurate. Luckily, there are still some sound strategies available to you to help you maximize your lifetime benefit.
Do You know how to maximize your Social Security Benefits?
Here are some important questions you should ask:
- Do I know how to claim social security to maximize the benefits for me and my spouse?
- Do I know the breakeven point for claiming early (receive money sooner) vs. claiming later (bigger check)?
- Have I reviewed how the 2019 Secure Act can affect me?
- Do I know how to use my benefits, my spouse’s benefits and potential my ex-spouse’s benefits can be combined to produce the highest amount of Social Security available?
- Have I spoken about my Social Security claiming strategy with a financial professional?
Leverage My Pension Benefits
If you are fortunate enough to have a traditional pension plan, you are fortunate because pension plans can be a critical component to producing stable and predictable retirement income. Maximizing your pension benefit is key to optimizing this important benefit.
Do you know how your pension benefits will affect your retirement?
Key questions to ask:
- How does my pension affect my or my spouse’s social security?
- Is there a survivor benefit for my spouse?
- Will my pension adjust for inflation?
- Have I reviewed how my healthcare benefits coordinate with Medicare?
- Am I aware of potential methods to increase my payout?
- What part of my expenses will be covered by my pension income?
- Have I researched the financial health of my pension, so I know the likelihood of my payout?
Use Advance Retirement Income Strategies
Shifting your investment strategy from the “accumulation phase” to the “income phase” is critical to create the retirement income you need. Fortunately, there are many strategies that don’t fluctuate with the market. Adding these strategies for a portion of your portfolio can keep your income steady even when the markets are volatile.
Do you understand where and how you can use advanced income strategies in your portfolio?
Key questions to ask:
- Have I reviewed my portfolio to understand how my income will be generated?
- Are a portion of my assets positioned to provide a guaranteed stream of income?
- What happens to our income if my spouse outlives me?
- Are there other advanced income strategies that I should consider?
- Have I discussed adding advanced income strategies in my portfolio with a financial professional?
Don’t allow stock market volatility to destabilize your retirement income
If you are concerned about how to turn your nest egg into steady retirement income, you aren’t alone.
We offer a Free Retirement Assessment to help you answer your investment and tax questions.
You will get answers on how to keep your taxes lower in retirement and maximize your Social Security.
We can also discuss how to balance market volatility with a more stable retirement income stream.
If you feel overwhelmed because you don’t have a plan in place to address all of the issues you will face in retirement that’s ok. We will outline what needs to addressed and develop a plan to get it done for you.
You are already making smart retirement choices by reading this guide.
We can help you clarify the next steps you can take to set yourself up for a solid retirement.
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