Often client
s want to find ways to increase their available income in retirement. At Axiom, we suggest that you diversify your plan on three fronts. 1) Diversify youd investments; 2) diversify your tax strategy; and 3) diversify your income strategy based on when you expect to need the income. By making basic assumptions regarding how you will live, and what your core expense requirements will be, you can position resources and choose income options that fit your expected needs. Experts in distribution planning suggest that these core expenses be protected with a combination of social security pension benefits and some form of insured income product, such as a deferred annuity with a guaranteed lifetime income or withdrawal feature. By establishing a base level of income that you cannot outlive, you are able to organize the balance of the portfolio to meet your discretionary choices.
Having your income “floor” secured makes the travel in early retirement years not only possible, but potentially more enjoyable as the concern of outliving your money has been removed from the plan. As with all strategies, there are many ways to address and solve a problem. You will be able to think through what is best for you, and with your advisor, select the components that will accomplish your goals.
Diversification strategies do not assure profit or protect against loss in a generally declining market.