How your retirement savings can continue working for you.
You’ve spent many years saving in preparation for retirement. You’ve planned strategically to get here and have secured the resources necessary to ensure lasting comfort for yourself and your family. Now that you’ve arrived, there are still decisions to be made regarding how to turn your retirement savings into retirement income. Just because you’ve begun withdrawing does not mean you must stop earning.
Here are some of the ways you can put your retirement savings to work.
This one probably seems rather obvious. However, investing in retirement comes with some pitfalls and caveats that are important to consider. Turning savings and fixed income into variable income requires a special balance that is unique to your situation. Talking with your financial advisor can help you choose between options such as retirement income funds, real estate investment trusts, annuities and more.
Sometimes protecting what you have can be as important as earning. Placing resources in a cash reserve can ensure that you have access to easily withdrawable short-term liquidity. These funds can be shielded from the effects of market declines while still gaining interest through low-risk money markets. Safeguarding immediate funds from volatility can allow your larger retirement savings to recover from changes in the market without restricting cash flow.
Yes, you read that correctly. Retirement doesn’t have to mean the absence of work entirely. Rather, it can be an opportunity to maintain an active lifestyle and pursue passions that you were unable to explore throughout your career. By investing your time in something that you love, you can secure supplemental income and experience things that you may have always yearned for, but did not necessarily have time to enjoy.
Your days of earning are far from over. Keep these tips in mind to maximize your retirement income: