Retirement – a time for leisure, travel, and pursuing your passions. But how do you ensure a steady stream of income to fund your lifestyle while protecting your hard-earned savings? This guide explores retirement income strategies that prioritize spending, protecting, and growing your wealth, aligning perfectly with a moderate-conservative risk tolerance.
The Spend, Protect, Grow Approach
This approach focuses on balancing three key objectives for a secure retirement:
- Spend: Generating income to cover your essential and desired retirement expenses.
- Protect: Preserving your principal investment while minimizing risk of loss.
- Grow: Creating potential for long-term growth to combat inflation and maintain purchasing power.
Retirement Income Strategies for Moderate-Conservative Investors
Here are income strategies tailored for a moderate-conservative risk tolerance:
- Fixed-Income Investments: Offer regular income payments with lower volatility. Explore options like:
- Bonds: Government and high-quality corporate bonds provide steady income and capital preservation.
- Certificates of Deposit (CDs): Could offer guaranteed returns for a set period.
- Fixed Indexed Annuities: Offer market-like growth with potential principal protection. Pair it with a set withdrawal plan for a reliable income stream that grows and provides access to your funds.
- Dividend-Paying Stocks: Invest in companies with a history of paying regular dividends. They offer income and potential for capital appreciation.
- Income-Producing Balanced Funds: These mutual funds or ETFs invest in a mix of stocks and bonds, aiming for income generation with moderate growth potential.
- Social Security: Factor in your expected Social Security benefits as a reliable income source. Explore what claiming strategy (i.e., timing, spousal benefits) makes sense for you with a financial advisor.
- Pension Income (if applicable): Pension plans from previous employers can provide a steady income stream.
McAdam Financial: Your Trusted Partner in Retirement Income Planning
At McAdam Financial, we understand the importance of a secure and comfortable retirement for moderate-conservative investors. Our experienced advisors specialize in tax-efficient decumulation strategies and can help you:
- Develop a personalized retirement income plan aligned with your “spend, protect, grow” objectives, considering tax-efficient investment options and withdrawal strategies.
- Choose investment options that match your risk tolerance and income needs. Prioritize tax-advantaged accounts to help minimize your tax burden.
- Develop a withdrawal strategy that aims to optimize your retirement income while minimizing taxes. We’ll factor in tax implications like Required Minimum Distributions (RMDs) to help ensure your savings last throughout your golden years.
- Monitor your portfolio performance and adjust your strategy as needed, keeping tax efficiency in mind.
Building Your Dream Retirement
Don’t navigate retirement income planning alone. Schedule a free consultation with a McAdam Financial advisor today! We’ll help you build a solid foundation for your retirement castle with the goal of ensuring a steady income, protecting your principal against a market downturn, and allowing potential for growth.
Call 855-MCADAM5 now! Or click to schedule your consultation online.
Written by McAdam Financial as of 6/18/24. This article is provided by McAdam LLC (“McAdam” or the “Firm”) for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future. No portion of this article is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax, or legal advice. Certain information contained in this report is derived from sources that McAdam believes to be reliable; however, the Firm does not guarantee the accuracy or timeliness of such information and assumes no liability for any resulting damages.
Securities offered only by duly registered individuals through Madison Avenue Securities, LLC (MAS), member FINRA/SIPC. Investment advisory services offered only by duly registered individuals of McAdam, LLC, a registered investment advisor. Insurance products and services offered through McAdam Financial. McAdam, LLC and McAdam Financial are not affiliated with MAS.