Our Options for Stable Retirement Income Streams

While I don't have a pension, I appreciate the stability offered by pension income.  So I've been evaluating options that help create stable retirement income.   Here are some of the options that are possibilities for us.

• Dividends and interest.  When interest rates were 5%, CDs and bonds were a good source of stable income.  Now that interest rates are low, dividend paying stocks can also provide a stable source of income, although with more principal risk.
• Rental property.  This option can offer a good steady stream of income.  However, it is usually effort and resource intensive.   Either the work (rental, repair, tax returns) needs to be done by the owner or a management company needs to be hire to do the work.   Vacancies can significantly increase costs or reduce income.
• Annuity.  Insurance companies can provide a stable source of income in return for a lump sum payment or period contributions.
• Social Security.  This government  program provide month payments to beneficiaries.  Now that I'm 55, Social Security benefits are likely not going to change for me before I reach 62 which is the first year I can file for benefits.

I will start working with my financial advisor to utilize these options and create stable retirement income payments.

For more on Reaping the Rewards, check back every Friday  for a new segment.

This is not financial or retirement advice. Please consult a professional advisor.

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