There are many different income strategies that you can use when you are set to retire. A bucket strategy is commonly used which involves dividing your retirement savings into different buckets. Typically one bucket will be used as an emergency fund and another will be used for long-term investments. Systematic withdrawals are simply taking money out of your retirement fund each year with the amount increasing from year to year. Finally, social security is a great supplemental income during retirement and the longer you wait to claim the benefits, the higher amount you’ll receive.
Key Takeaways:
- Use the bucket strategy which is where you create an investment bucket for emergencies and then other buckets for longer term use.
- Systematic withdrawals are simply taking out a percentage of your retirement fund each year with the number increasing over time.
- Maximizing your social security payments is a great strategy as well but it also involves you having to work until your full retirement age which is either 66 or 67.
“Here are eight common strategies retirees use to get the most out of their nest eggs.”
Read more: https://www.fool.com/retirement/strategies/income/
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