You Think in Terms of Income, Not Assets

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You Think in Terms of Income, Not AssetsUnderstanding how much savings you need is useful, but thinking in terms of income—not just assets—is the key to a secure and confident retirement.That means balancing guaranteed income—like Social Security, pensions, and annuities—with flexible income from investments, dividends and other withdrawals from savings, part-time work, or rental properties.

• Ideally, you have guaranteed income to cover essential expenses, providing stability no matter what the markets do. It provides a foundation for your basic needs, ensuring peace of mind.
• Flexible income allows you to adjust for lifestyle choices, unexpected costs, and opportunities. It gives you the freedom to travel, pursue hobbies, or adapt to changing circumstances.

A strong retirement plan ensures you have the right mix of both, so you can confidently spend without fearing market swings or outliving your money.Instead of obsessing over a magic savings number, you can focus on what matters: maintaining independence, enjoying life, and making informed decisions that keep your retirement secure—no matter what comes your way. Want to learn more? Here are 18 different retirement income strategies.And, you plan withdrawals carefullyWithdrawals from savings are an important part of most retirement plans.Unlike a regular paycheck, your retirement income often comes from a mix of investments, savings, and guaranteed sources—and pulling from them in the wrong order or at the wrong time can lead to unnecessary taxes, missed growth opportunities, or even running out of money too soon. Factors like market performance, inflation, healthcare costs, and required minimum distributions (RMDs) all play a role in how and when you should take money out.A thoughtful withdrawal strategy balances your spending needs, the sustainability of your savings, and your tax bill.