Drawing Income in Retirement

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Explore safe money alternatives for retirement income planning. Discover guaranteed solutions to secure your financial future. Learn more at SafeMoney.com. Whether you bring home a paycheck or earn your keep from entrepreneurship, everyone has some primary income sources during their career. But things change in retirement. Some folks continue to work in some fashion, often for their own enjoyment. However, chances are you won’t count on this same income source in the way that you did during your career. You may well have to find a way to replace this income with other income streams. This brings up a big question: How will you draw income for your retirement spending needs ? What Income Sources Will You Use? There are several sources which you may be able to tap for retirement income. Those potential assets can include CDs , Treasury securities, savings bonds, I-bonds, TIPS, and corporate or municipal bonds. What about other sources of income that aren’t fixed-interest assets of sorts? There are also preferred stocks, REITs, income from rental or commercial properties, or even payments just from cash. Some retirees also depend on proceeds from mutual funds and ETFs as another common source of monthly retirement income. If you are an accredited investor, then income from limited partnerships or other private investment opportunities may be a possibility. Part-Time Work, Another Income Source? Many folks turn to employment as a continuing source of income, so they are working for more than just personal fulfillment. In that regard, income from a part-time job can be another way to tie over on recurring expenses for your lifestyle each month. Of course, keeping this up can depend on your health and other circumstances, such as whether you will still have reliable transportation after you retire. The One Thing That Pays Guaranteed Lifetime Income However, there is one other possible source of guaranteed income that is available to you. Annuities can pay you a stream of income that you can’t outlive. You will continue to receive payments if you exhaust all of the money in the contract. In fact, besides Social Security an annuity is the only financial vehicle on the planet that is capable of paying you a truly guaranteed income for life. The insurance company is bound by l