What goes into a retirement ‘paycheck’?
During your working years, you generally know how much money you’re brining in, so you can budget accordingly. But once you’re retired, how can you put together a “paycheck” to help meet your income needs?
Some of this paycheck will likely come from Social Security. And if you worked for a government agency or a large company, you might also get a pension, though pensions have become much rarer. In any case, you may need to draw heavily from your investment portfolio.
Your portfolio may provide you with dividends and interest income. But you’ll also likely have to start selling investments. How much you need to sell each year, and the types of investments you sell, will depend on a variety of factors, but you’ll want to be careful not to take out too much, too soon.
One other suggestion: Keep at least a year’s worth of living expenses in cash, in addition to what you may need for emergencies. This liquidity can help keep you from dipping more deeply into your long-term investments than you’d like.
You may be retired for a long time so take the steps necessary to build a consistent retirement paycheck.
This content was provided by Edward Jones for use by Matthew Besier, your Edward Jones financial advisor at 179 East Beck Street. Member SIPC
