Social Security checks provide a portion of monthly income for most older people. Some also receive monthly checks from a traditional pension plan. These sources typically form the foundation of a retiree’s income plan. But to maintain their standard of living, many people also need additional monthly income during retirement. How to build that additional income stream is the challenge.
For many, the discussion revolves around two questions: “Should I just take withdrawals from my savings and investment accounts whenever I need money beyond my Social Security or pension check? Or, should I purchase financial products – like annuities – that will pay me a guaranteed income stream?”
The choice between taking withdrawals and purchasing an income annuity involves many trade-offs, so it pays to look at the issue from many angles before reaching a decision.
Carl Barnowski, Founder of the Barnowski Financial Group says “a good place to start is to assess how much flexibility you are likely to need. Early in retirement, for example, people may have considerable flexibility to spend discretionary funds on hobbies or vacations. In the later years, however, this flexibility may decline or uncertainty may rise concerning health care costs or long-term care costs”.
One list note: It is essential to work with advisors who are experts in retirement income planning as well as fluent in navigating their way around the subject of Social Security Optimization and who understand tax effects. At the Barnowski Financial Group, we use specialized Social Security planning software that accounts not only for your work history and family structure, it also account for tax implications. If there is anything one of our retirement income experts can do, please don’t hesitate to call on us. Our job is to help you…
Plan Smart…. Retire Right…. Sleep Well!