Baron Financial Answers Video: How do I create an income stream in retirement?

Baron Financial Team Answers Questions About
“Your Personal Economy^SM”

Presented by Victor Cannillo, NAPFA-Registered Financial Advisor

Today’s video answers the question, how do I create an income stream in retirement?
View or listen to our video to learn more

By that we mean, how do I create a strategy that produces an income stream similar to when I received a paycheck. 

We are going to cover three common income resources that may be available to you in retirement:

• Income from investments
• Additional income from part-time employment or pensions
• Social Security

Remember everyone’s circumstances are different. 

Retirement portfolios can be composed of accounts such as: IRAs, 401(k)s, Roth Accounts, as well as taxable accounts.  Some common additional income resources can come from part-time employment, or a pension plan.  If you are eligible to receive a pension from your employer upon retirement, you will need to select payment options which can include:  

• Single life 
• Joint
• or Lump sum 

Each pension has its own criteria which should be reviewed in detail prior to making a decision. Everyone’s circumstances are different and may warrant a different choice.

This brings us to Social Security, which is probably the most common source of income in retirement in the U.S. If you are eligible to receive Social Security benefits, based on your work history or your spouses, you will need to decide when to apply to begin receiving monthly benefits. 

Having a plan in place can help you optimize benefits. For example, if you are retiring at age 62 you will receive a reduced benefit for your lifetime. Alternatively, if you delay collecting until age 70, in order to receive maximized monthly benefits, you may need to use different income resources at different times to cover monthly expenses. 

The thought of not having a steady paycheck anymore can be stressful. Having a financial plan in place prior to retiring is essential and can help relieve stress. 

Our discovery process reviews your available resources. You may need to use your income resources at different times during your retirement, and that is what we help plan for.

At Baron Financial Group, we help clients answer the question, will I be okay in retirement? Can I live the lifestyle I want?

You can view all of our videos in the series here.

If you feel someone might benefit from our video, please feel free to share it.

Please contact the Baron Team with any retirement planning questions.

Disclosure: This is a general communication being provided for informational purposes only.  This material is not intended to be relied upon as a forecast, research, legal, tax or investment advice. Every investment strategy has the potential for profit or loss. Any decision with Social Security should be confirmed with the Social Security administration or by visiting www.ssa.gov.