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Secure Your Retirement Paycheck: The Power of Three Buckets

The article from Kiplinger discusses strategies for securing a reliable income stream during retirement, often referred to as a "retirement paycheck." It emphasizes the importance of planning beyond just saving; it's about creating a steady income that can last throughout one's retirement years. Key points include understanding different income sources like Social Security, pensions, annuities, and withdrawals from retirement accounts. The article highlights the need for a diversified approach to mitigate risks such as inflation, longevity, and market volatility. It suggests considering annuities for guaranteed income, the timing of Social Security benefits to maximize payouts, and the use of investment strategies like the bucket approach where funds are allocated for different time horizons. Additionally, it touches on the importance of tax planning, understanding required minimum distributions (RMDs), and the potential benefits of working part-time in retirement to supplement income and delay drawing down savings. The overarching theme is the necessity of a well-thought-out plan that adapts to personal circumstances and economic changes to ensure financial security in retirement.

Read the Full Kiplinger Article at:
[ https://www.kiplinger.com/retirement/how-to-secure-your-retirement-paycheck ]