W3Schools

Outside the Box: How to generate the income you need in retirement

You’ve spent your whole life saving for retirement . Now you’re finished working, and it’s time to start spending what you’ve saved. For many investors, the transition can be confusing or even traumatic. How will you tap your portfolio?

As investors approach this transition from saving to spending they should take three steps: start with a retirement income plan, keep their portfolio invested and diversified, and then rebalance their portfolio periodically to generate the cash they require. Here we’ll discuss the last step — creating your paycheck when rebalancing.

Why is this important?

If you’re an investor, you’ve almost certainly heard of having an appropriate asset allocation to stocks and bonds, maybe 60% stocks and 40% bonds, and then periodically rebalancing.

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