Time to read: 3 minutes
Most people do not associate income and retirement together. At The Tranel Financial Group, those words are commonly used together because you need income in retirement, right? Pre-retirement, you are used to getting a paycheck. Whether you work for the same company for 40 years, or you just are getting ready to transition to this next chapter of your life being retirement.
Retirement can bring on nerves and it’s something most people only do once. When we look at income in retirement, you want to think of what you’re used to in the past. You received a paycheck (typically) every two weeks into your checking account and you knew it would be there. Therefore, you could budget/plan accordingly and next month it gets filled right back up. Retirement does not need to be any different than that.
Common options for income in retirement:
- You receive Social Security every month and you know it’s going to hit either the second or third Wednesday of every month
- You have a pension
- You are pulling dividends or income from your investment portfolios
- You have a rental property
You should be looking to replace the income that you had while you were working and make sure that every single month instead of getting a paycheck from your employer, you’re getting a paycheck from yourself in the assets that you’ve accrued.
Once you have looked at your potential future income in retirement, make sure that you have a way to continuously replenish your distributions. At The Tranel Financial Group, we have a retirement strategy called growth and income. There are two investment objects, a portfolio that allows for your money to grow, and a second portfolio that you pull from income from monthly. What is important to know is that your growth account is to replenish your income account to help you live a long and prosperous life.
If you are interested in learning more about the growth and income retirement strategy, please click here to review an example with numbers or you may contact one of our financial advisors here.
If you would prefer to listen, please click the YouTube Video below to listen to Tyler Braun, Financial Advisor, talk about income in retirement.