Mixing It Up: Income Planning

Here’s a primer on how to tap various sources of income in retirement.

To enjoy a long and comfortable retirement, you may need to balance multiple types of income streams in your retirement portfolio. This could help you achieve the most advantageous mix of investment growth, income and tax control that’s appropriate to your risk tolerance, income horizon and goals. These streams can come from the following types of investments:

  1. Withdrawals from a qualified plan are subject to ordinary income taxes and a 10% federal tax penalty if taken prior to age 59½.
  2. Dividends are not guaranteed.
  3. Sources: Standard & Poor’s, as of August 1, 2017, and Robert J. Shiller, Irrational Exuberance (New York: Broadway Business Books, 2009).
  4. Understanding the Benefits 2017, https://www.ssa.gov. https://www.ssa.gov/pubs/EN-05-10024.pdf.
  5. Annuities are long-term, tax-deferred vehicles designed for retirement. There are costs and limitations associated with this product and guarantees are based on the claims paying ability of the underlying insurance company.