Making Your Retirement Income Last
A practical guide to turning savings into steady cash flow
As retirement nears, the focus shifts from building wealth to converting it into reliable income. Getting this right helps you stay secure and sustain the lifestyle you want for decades. The strategies below show how to turn a lifetime of saving into income you won’t outlive.
How much will you actually need in retirement?
Start with a clear picture of yearly spending: housing, healthcare, insurance, travel, hobbies, and day-to-day living—then layer in inflation. Many people plan for roughly 70–85% of pre-retirement income (adjusted for rising costs) to maintain a similar standard of living. Use budgeting tools and calculators to refine your estimate.
Build multiple income streams
Diversification matters in retirement, too. Blending several sources can smooth cash flow and reduce reliance on markets:
Social Security: Delaying past full retirement age increases your monthly benefit.
Pensions & annuities: These can provide predictable payments; review terms and longevity features carefully.
Portfolio withdrawals: A balanced mix of investments can fund distributions via dividends, interest, and realized gains.
Part-time work or consulting: Supplemental income can ease pressure on your portfolio and keep you engaged.
Design a withdrawal strategy
Choose a sustainable withdrawal rate so your savings last. The well-known “4% rule” is a starting point, not a one-size-fits-all answer. Adjust for market conditions, taxes, healthcare needs, and personal goals. Revisit your plan regularly and update as life changes.
Make taxes part of the plan
Taxes directly affect how much you keep. Consider tactics that can lower lifetime taxes—not just this year’s bill:
Roth IRA conversions: Moving funds from pre-tax accounts to Roth in selected years can create future tax-free income.
Withdrawal sequencing: Often this means spending from taxable accounts first, then tax-deferred, and finally tax-free—but tailor to your situation.
Tax-loss harvesting: Realize losses to offset gains where appropriate and reduce your overall tax burden.
Use income-producing investments wisely
Select vehicles that support steady cash flow without concentrating risk:
Dividend-paying stocks and ETFs: Established companies can provide ongoing distributions.
Bonds and other fixed income: Government and investment-grade corporates offer scheduled interest and help moderate volatility.
Real estate exposure: REITs or rental properties can add income potential and some inflation resilience.
Guard against inflation
Rising prices can quietly erode purchasing power. Keep a portion of your portfolio in assets that can help you keep up, such as Treasury Inflation-Protected Securities (TIPS) and growth-oriented investments with long-term return potential.
Revisit and recalibrate each year
Markets, tax rules, health, and goals evolve. Review your plan annually to adjust contributions, withdrawals, asset mix, and protections so your income strategy stays aligned.
Take action to strengthen your retirement paycheck
Retirement should focus on living well, not worrying about running out. A thoughtful plan—updated over time—can deliver more confidence and comfort. If you want help building or stress-testing your approach, FMD Wealth Advisors can work with you to tailor these steps to your situation. Book your Free - Discovery Call here.
Frequently asked questions (FAQs)
What’s the most effective way to boost retirement income?
Combining multiple sources—Social Security, pensions/annuities, portfolio withdrawals, and part-time work—creates stability and helps maximize overall cash flow.
Should I delay claiming Social Security?
Waiting beyond full retirement age generally raises your monthly benefit. If you can cover expenses from other sources, delaying can be a simple way to increase lifetime income.
How does tax planning help?
Coordinating Roth conversions, withdrawal sequencing, and tax-loss harvesting can lower taxes over time so more of your money stays with you.
Why plan for inflation?
Inflation reduces buying power. Including inflation-aware assets (like TIPS) and prudent growth exposure helps your income keep pace with rising costs.
What’s the best way to determine my income needs?
Build a detailed budget that reflects lifestyle goals, healthcare, housing, and inflation. Online calculators can help translate those costs into annual income targets.
Do I really need to review my plan regularly?
Yes. Regular check-ins keep your withdrawal rate, investments, and tax approach aligned with changing markets and personal circumstances.
Disclosures: FMD Wealth Advisors LLC (“FMD Wealth Advisors”) is a Registered Investment Adviser.
This material is for general information only and is not individualized legal or tax advice. Consult your attorney and CPA regarding legal and tax matters specific to your circumstances. This content is intended to provide general information about FMD Wealth Advisors. It is not intended to offer or deliver investment advice in any way. Information regarding investment services is provided solely to gain an understanding of our investment philosophy, our strategies and to be able to contact us for further information.
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