STRATEGY 2:
STRATEGY 3:
Diversifying Income Streams
Withdrawal Strategies
One of the most overlooked risks in retirement is sequence of returns risk— when market downturns coincide with withdrawals, potentially accelerating portfolio depletion. A structured withdrawal plan can help mitigate this risk. FOR EXAMPLE: Retirees may prioritize withdrawals from taxable accounts first, allowing tax-advantaged accounts to continue growing. The bucket strategy—which allocates funds into short-term, medium- term, and long-term “buckets”—can help create stability by ensuring liquidity for near-term expenses. THE KEY TAKEAWAY: It’s not just about how much you withdraw but also about when and from where to optimize your retirement income.
Relying on a single income source in retirement can increase financial vulnerability. A diversified approach—incorporating Social Security, pensions, investments, dividends, and other investments—can help reduce risk and support long-term financial security. A well-structured income strategy helps ensure that if one source underperforms, others may help offset the gap. The optimal mix of income sources depends on your personal goals, lifestyle, and risk tolerance. FOR EXAMPLE: Combining guaranteed income sources with market-based investments may provide both stability and potential growth. This balance can help retirees manage market fluctuations and support their long-term needs.
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