{"id":1015,"date":"2023-05-25T10:14:27","date_gmt":"2023-05-25T14:14:27","guid":{"rendered":"https:\/\/gpswp.com\/wealthflowfinancial\/?p=1015"},"modified":"2023-05-25T11:29:41","modified_gmt":"2023-05-25T15:29:41","slug":"how-do-i-get-income-from-my-portfolio","status":"publish","type":"post","link":"https:\/\/gpswp.com\/wealthflowfinancial\/how-do-i-get-income-from-my-portfolio\/","title":{"rendered":"How Do I Get Income From My Portfolio?"},"content":{"rendered":"\n

By Jay Shareef and Chris Rhoads<\/em><\/p>\n\n\n\n

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Transitioning from diligently saving for retirement to carefully spending your retirement savings requires finesse and intentional strategy. For federal employees<\/a>, this shift can be particularly daunting without a well-crafted withdrawal plan in place. But fear not\u2014we at WealthFlow Financial specialize in simplifying the complexities and crafting personalized plans that empower you to make the most of your retirement savings. In this article, we reveal 5 tips to generate income from your portfolio in retirement to help every decision count in your favor.<\/p>\n\n\n\n

<\/a>1.   Determine How Much You Can Safely Spend<\/h2>\n\n\n\n

Before making any decisions about how<\/em> to withdraw from your portfolio, it\u2019s crucial to first understand how much<\/em> you can safely spend. The last thing you want is to spend too much based on a general rule of thumb and risk running out of money later in retirement. There are a number of factors to consider when determining how much you can safely spend, including long-term goals, lifestyle expenses, expected life span, and healthcare needs. Working with a qualified financial professional is a great way to determine the right amount for your needs.<\/p>\n\n\n\n

<\/a>2.   Understand the Different Withdrawal Strategies<\/h2>\n\n\n\n

Once you have determined how much you can safely spend, it\u2019s time to look at the different withdrawal strategies available. In general, there are two main methods for turning your savings into income:<\/p>\n\n\n\n

<\/a>Systematic Withdrawal Approach<\/h3>\n\n\n\n

With the systematic withdrawal approach<\/a>, you withdraw a fixed percentage of your retirement savings each year, typically between 3% and 5%. The general rule of thumb is 4% in the first year of retirement and increase the amount each year to account for inflation. The withdrawal rate is based on the value of the portfolio at the start of each year, so the amount of income can fluctuate depending on market performance.<\/p>\n\n\n\n

This strategy allows you to generate a steady stream of income while still allowing for flexibility and potential growth of your investments. However, it\u2019s important to monitor the withdrawal rate to ensure the portfolio can last throughout retirement.<\/p>\n\n\n\n

<\/a>Bucket Approach<\/h3>\n\n\n\n

Another way to optimize your portfolio longevity is to divide your savings into different buckets to match different time horizons<\/a>. Each bucket will have investments tailored to that time horizon in terms of asset class<\/a>, risk level, and liquidity.<\/p>\n\n\n\n

One common approach is to divide your portfolio into three buckets:<\/p>\n\n\n\n