Investing for Income

As retirement Income Specialists, we work closely with our clients to provide you with retirement planning advice that gives you the best chance of achieving your long-term financial goals. Our retirement planning services include strategies that can help you:

• • Preserve your retirement assets
  • Generate steady income in retirement
  • Minimize your exposure to market risk
  • Minimize taxes

Although the growth-based financial strategies you used during your working years might have been effective in helping you grow your retirement savings, those same strategies could jeopardize your financial security in retirement. In our experience, the best way to avoid that risk is to work with a retirement consultant who can help you focus on income-based strategies designed to help you preserve your savings so you can use it as a source of ongoing income.

This doesn’t mean that you cannot remain invested in the stock market once you near retirement. For those with the ability to endure some level of market risk, high dividend-paying stocks can be a viable way to enjoy the benefits of investing for income. This approach can give you a more practical way to invest in stocks as you approach or enter retirement. That’s because if you’re retired when the market experiences a downturn, the dividends you receive will satisfy your income needs, and you can hold the stock and wait for the market to come back. If you don’t need the income at the time, you can reinvest those dividends and grow your money the old-fashioned way through dollar-cost averaging.

In our experience, the only truly “safe” way to ensure you won’t outlive your money is to have a strategy that generates reliable income through interest and dividends. That’s because:

• • When you live off your interest and dividends, you’re not spending any principal, so you don’t have to worry about whether the market grows or shrinks.
  • You have the potential to keep growing your money more safely through strategic reinvestment.
  • It makes your retirement income a “renewable resource”.