Wednesday, February 08, 2017

Recurring Retirement Income

"Nothing can be said to be certain, except death and taxes." ~ Benjamin Franklin

I've come to the conclusion that reliable recurring income increase with time should become my main financial focus in retirement.  Up until 2014, I had been planning on using the capital gains from our investments for fund our expense needs.  However, the volatility of a capital gains approach will likely cause significant financial stress in bear market years.

Retirees with public pensions and Social Security recipients probably already appreciate my conclusion.  Unfortunately, we do not have a public pension nor are we old enough to qualify for Social Security.   So I will need to create recurring income streams for us on my own.

My current thinking is to use a combination of dividend stocks, CDs and rental income to create our own pension.   We will combine these amounts with future Social Security payments to create a sustainable, recurring source of retirement income.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

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

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