Tips for Managing Your Retirement Income

Retirement is something that most people look forward to as a time of rest, relaxation, and not having to worry. However, there is one thing you’ll have to think about in retirement, and that’s your retirement income. You are going to need to have some money coming in during retirement, and, if you’ve saved properly, that shouldn’t be a problem. However, you will want to ensure that you’re taking out the right amounts so that you’re not draining what you have too quickly. You can make sure this happens by taking care to calculate an accurate and viable withdrawal rate.   

A good withdrawal rate is one that allows you to take out money each year while still having enough principal for your funds to last you throughout retirement, no matter what may happen with the economy.

Obviously, you want to be able to withdraw as much as possible while still staying safe, and you can do that by following some simple tips.

Retire at the Right Time

They say timing is everything, and that’s certainly true when it comes to retirement. Whenever possible, you will want to try and retire when the stock market has a low price to earnings ratio.

If you retire at a time when this ratio is low, it is very likely that your portfolio will be able to support you in the coming years, even with inflation figured into the mix.

A good financial adviser will know how the market is performing at any given time and can provide you with advice on the right timing for retirement if you’re hoping to maximize your withdrawal rate.

Use a Multi-Asset Class Portfolio

Another way that you can make the most of your withdrawal rate is by using a multi-asset class portfolio.

A multi-asset class portfolio is good because it is very well balanced. It will have an allocation toward various asset classes, allowing you to have protection in each area.

Again, a financial adviser is the key to helping you build and choose the right portfolio of this type.

Take Retirement Income Cuts when Needed

One final thing that can really help you out is if you are willing to take retirement income pay cuts when necessary.