Burns Estate Planning: Drawing income in retirement

MOBILE, Ala. (WALA) - Chris Burns from Burns Estate Planning joined us in our Gulf Coast Spotlight. In this segment, we discuss various ways one can draw income in retirement.

Below are some talking points sent to FOX10 from Burns Estate Planning:

There are many different ways one draws income in retirement, can you give us some examples of this?

Yes, there are a few different ways outside of the traditional way- social security and pensions- to draw income in retirement. We are all familiar with social security. In addition, some retirees are still fortunate enough to have company pensions, while many these days are not. This is where having multiple options for income streams can become more important for retirees.

So outside of social security and pension, what other options are out there? Can you elaborate?

So depending on each retiree’s income needs, one way is structuring your portfolio once you reach retirement age to start producing income to help offset some of the salary that has just gone away. One way we can do this is the use of fixed income, like bond ladders, and also other instruments like structured notes.

Very interesting! How safe are these investments?

They all have market exposure. The bonds are more affected by interest rates and the moves The Fed makes, as we’ve seen with higher interest rates being held lately. Stocks and even Blue Chip companies are affected by the overall stock market movement. When it comes to safe investments, CDs are another tool we use that have very little to no volatility, and as of late, can produce 4%-5% depending on the time frame we are looking at for the retiree.

Outside of these options, are there any other options that a retiree can use for income?

Yes, there are. A financial advisor may sometimes use fixed index annuities to compliment these other investments. Some people call this the “Bucket Approach ‘’ but we just like to have another option to supplement income or to pool income depending on the retiree’s situation and income needs. These products are insured, but you want to make sure that these insurance companies have a very good rating.

So if someone is retiring this year and would be interested in diversifying their income streams, what do you recommend for them?

To call their financial advisor and have a review. They need to have a plan depending on many personal circumstances (How much income they need in retirement? What are their goals? etc) and a financial advisor there to assist them creating a plan that works for them.

https://burnsestateplanning.com/

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