Click the link below the picture
.
During your working years, your largest income stream is generally from employment. When you retire, however, your income will likely need to come from a variety of sources, such as retirement accounts, after-tax investments, Social Security, pensions, or even continued part-time work. For those looking to create a retirement income stream, there are a variety of strategies available depending upon your specific income needs and lifetime goals. Two simple retirement income strategies include the total return approach and the bucket approach.
Total Return Approach to Retirement Income
The total return approach is probably the best-known strategy. With this approach, assets are invested with a focus on diversification, using a portfolio of investments with a varied potential for growth, stability, and liquidity, based on your time horizon, risk tolerance, and need for current and future income. There are three defined stages within this approach, which are contingent upon how near you are to retirement:
-
Accumulation phase: During peak earnings years, the objective is to increase total portfolio value through long-term investments that offer growth potential.
-
Pre-retirement phase: As you approach retirement this should include a gradual move toward a more balanced growth and income-based portfolio, with an increased allocation toward stable and liquid assets as a means of preserving your earnings.
-
Retirement phase: Once retired, maximizing tax-efficient income while protecting against principal decline may result in a portfolio heavily weighted toward income-producing liquid assets.
.
Getty Images
.
.
Click the link below for the article:
.
__________________________________________
James' World 2 
Leave a Reply